Wolfspeed Inc (WOLF) 2023 Q1 法說會逐字稿

Hello, and welcome to the Wolfspeed Inc. First Quarter Fiscal Year 2023 Earnings Call. My name is Harry, and I'll be your coordinator today. (Operator Instructions) It is now my pleasure to hand you over to Gregg Lowe, CEO, to begin. Please go ahead.

您好，歡迎參加 Wolfspeed Inc. 2023 財年第一季度財報電話會議。我的名字是哈利，今天我將擔任你的協調員。 （操作員說明）現在我很高興將您交給首席執行官 Gregg Lowe 開始。請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to Wolfspeed's First Quarter Fiscal 2023 Conference Call.

謝謝接線員，大家下午好。歡迎參加 Wolfspeed 2023 財年第一季度電話會議。

Today, Wolfspeed's CEO, Gregg Lowe; and Wolfspeed's CFO, Neill Reynolds, will report on the results for the first quarter of fiscal year 2023.

今天，Wolfspeed 的首席執行官 Gregg Lowe； Wolfspeed 的首席財務官 Neill Reynolds 將報告 2023 財年第一季度的業績。

Please note that we will be presenting non-GAAP financial results during today's call, which is consistent with how management measures Wolfspeed's results internally. Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies.

請注意，我們將在今天的電話會議上展示非公認會計原則的財務業績，這與管理層內部衡量 Wolfspeed 業績的方式是一致的。非公認會計原則的結果不符合公認會計原則，可能無法與其他公司提供的非公認會計原則信息相比較。

Non-GAAP information should be considered a supplement to and not a substitute for financial statements prepared in accordance with GAAP. A reconciliation to the most directly comparable GAAP measures is in our press release and posted in the Investor Relations section of our website, along with a historical summary of other key metrics.

非公認會計原則信息應被視為對根據公認會計原則編制的財務報表的補充而非替代。與最直接可比的 GAAP 措施的對賬在我們的新聞稿中，並發佈在我們網站的投資者關係部分，以及其他關鍵指標的歷史摘要。

Today's discussion includes forward-looking statements about our business outlook. We may make other forward-looking statements during the call. Such forward-looking statements are subject to numerous risks and uncertainties.

今天的討論包括關於我們業務前景的前瞻性陳述。我們可能會在電話會議期間發表其他前瞻性陳述。此類前瞻性陳述受到眾多風險和不確定性的影響。

Our press release today and the SEC filings noted in the release mention important factors that could cause actual results to differ materially, including risks related to the impact of the COVID-19 pandemic.

我們今天的新聞稿和新聞稿中提到的 SEC 文件都提到了可能導致實際結果出現重大差異的重要因素，包括與 COVID-19 大流行影響相關的風險。

During the Q&A session, we would ask that you limit yourself to 1 question and 1 follow-up so that we can accommodate as many questions as possible during today's call. If you have any additional questions, please feel free to contact us after the call.

在問答環節，我們會要求您將自己限制在 1 個問題和 1 個後續行動中，以便我們在今天的電話會議中盡可能多地回答問題。如果您有任何其他問題，請在來電後隨時與我們聯繫。

And now I'd like to turn the call over to Gregg.

現在我想把電話轉給格雷格。

Thanks, Tyler, and good afternoon, everyone. The growth in demand for our power device product line is greatly outpacing anything we would have anticipated only a year ago. At our last Investor Day, we said Wolfspeed was well positioned to capitalize on the increasing demand for EVs, industrial and 5G. We described 2022 and 2023 as an inflection point in the adoption of silicon carbide with accelerated growth beginning in 2024.

謝謝，泰勒，大家下午好。對我們的功率器件產品線的需求增長大大超過了我們一年前的預期。在我們上一個投資者日，我們表示 Wolfspeed 已做好充分準備來利用對電動汽車、工業和 5G 不斷增長的需求。我們將 2022 年和 2023 年描述為碳化矽採用的拐點，並從 2024 年開始加速增長。

Clearly, adoption is well ahead of schedule, creating an even greater demand supply mismatch than we had discussed previously. Fiscal Q1 revenue grew 54% year-over-year, our second straight quarter of greater than 50% top line growth when compared to the prior year period.

顯然，採用遠遠提前於計劃，造成了比我們之前討論的更大的供需不匹配。第一財季收入同比增長 54%，與去年同期相比，我們連續第二個季度實現了超過 50% 的收入增長。

Our device opportunity pipeline has increased to more than $40 billion, more than double the $18 billion that we talked about at our last Investor Day. And our sales team continues to convert this pipeline at an impressive clip and posted another record quarter in Q1 with $3.5 billion of design-ins.

我們的設備機會渠道已增加到超過 400 億美元，是我們在上一次投資者日討論的 180 億美元的兩倍多。我們的銷售團隊繼續以令人印象深刻的速度轉換這條管道，並在第一季度發布了另一個創紀錄的季度，設計投入為 35 億美元。

Our last 4 consecutive quarters of design-in, each of which was a record at the time totaled approximately $9.3 billion, which is 3.5x higher than the prior period. We continue to see strong demand for our power devices with Q1 revenue up more than 120% year-on-year.

我們最近連續 4 個季度的設計投入，每個季度都創下了當時的記錄，總計約 93 億美元，比上一時期高出 3.5 倍。我們繼續看到對我們的功率器件的強勁需求，第一季度收入同比增長超過 120%。

The team in Durham has done an absolute best to ramp production and expand capacity. But running a manual fab has its limitations, and we are seeing lead times extend for tools and replacement parts for fab equipment, which is impacting our ability to align with customer needs.

達勒姆的團隊在提高產量和擴大產能方面做得非常好。但運行手動工廠有其局限性，我們看到工廠設備的工具和更換零件的交貨時間延長，這影響了我們與客戶需求保持一致的能力。

And lastly, as part of an ongoing effort to expand supply of silicon carbide. The team was successful in increasing the length of pools through our continuous improvement efforts, which will help drive more wafers going forward to meet the immense demand for silicon carbide substrates.

最後，作為擴大碳化矽供應的持續努力的一部分。該團隊通過我們不斷的改進努力成功地增加了池的長度，這將有助於推動更多的晶圓向前發展，以滿足對碳化矽襯底的巨大需求。

While this will help alleviate some supply constraints, we're still refining some of our back-end processes for the longer poles and this will impact yield for the next couple of quarters. We're entering a period of significant expansion and are experiencing the associated growing pains.

雖然這將有助於緩解一些供應限制，但我們仍在為更長的桿改進一些後端流程，這將影響未來幾個季度的產量。我們正在進入一個顯著擴張的時期，並正在經歷相關的成長陣痛。

If you think about where we've come from in the last 5 years, from a $200 million semiconductor business back in 2017, to a global semiconductor powerhouse that is expected to generate over $1 billion of revenue in fiscal 2023 on the way to approximately $2.8 billion in fiscal 2026. It speaks to the massive amount of change we are driving across the business in a relatively short period of time.

如果你想想過去 5 年我們從哪裡來，從 2017 年 2 億美元的半導體業務，到預計在 2023 財年創造超過 10 億美元收入並達到約 2.8 美元的全球半導體巨頭2026 財年的 10 億美元。它說明了我們在相對較短的時間內推動整個業務的巨大變革。

Now I'd like to turn it over to Neill to go over the quarterly financials, the second quarter outlook and provide more details about our updated expectations.

現在我想把它交給尼爾來審查季度財務狀況、第二季度展望，並提供有關我們最新預期的更多細節。

Thanks, Gregg, and good afternoon, everyone. I'll start by providing an overview of the first quarter. We generated revenue of $241.3 million in the first fiscal quarter of 2023, which represents a 6% sequential improvement when compared to the $228 million in the fiscal fourth quarter of 2022 and growth of 54% year-over-year, driven largely by growth in all product lines and the market tailwinds Gregg referenced earlier.

謝謝，格雷格，大家下午好。我將首先概述第一季度。我們在 2023 年第一財季創造了 2.413 億美元的收入，與 2022 年第四財季的 2.28 億美元相比，環比增長 6%，同比增長 54%，主要受Gregg 之前提到的所有產品線和市場順風。

Underpinning the revenue growth is our design-in portfolio, which, along with the additional $3.5 billion this quarter, now sits at $14.5 billion cumulatively. Approximately 43% of our design-ins have converted into design wins, representing more than 1,600 projects.

支撐收入增長的是我們的設計投資組合，連同本季度額外的 35 億美元，現在累計達到 145 億美元。我們大約 43% 的設計導入已轉化為設計中標，代表了 1,600 多個項目。

Non-GAAP gross margin in the first quarter was 35.6% compared to 36.5% last quarter and 33.5% in the prior year period, representing a 210 basis point improvement year-over-year. Our gross margin in the quarter was impacted by issues related to our wafer manufacturing process to accommodate longer bull sizes.

第一季度非美國通用會計準則毛利率為 35.6%，上一季度為 36.5%，去年同期為 33.5%，同比提高 210 個基點。我們本季度的毛利率受到與我們的晶圓製造工藝相關的問題的影響，以適應更長的公牛尺寸。

Related to the Durham fabs, we believe we can continue to improve productivity and performance but we are reaching our capacity and capability limits and future significant step-ups in revenue and gross margin will come primarily from the Mohawk Valley fab. However, the Durham wafer fabs will likely remain fully utilized for the foreseeable future as customer demand remains strong.

與達勒姆工廠相關，我們相信我們可以繼續提高生產力和性能，但我們正在達到我們的產能和能力極限，未來收入和毛利率的顯著增長將主要來自莫霍克谷工廠。然而，由於客戶需求依然強勁，達勒姆晶圓廠在可預見的未來可能仍將得到充分利用。

In addition, as it relates to RF, we were unable to transition from 100-millimeter to 150-millimeter wafer sizes due to the overwhelming demand for our products which has kept our factories full, leaving us essentially no factory downtime to make the transition. Given the strong demand for our products, we don't anticipate making this transition for at least several years.

此外，由於涉及射頻，我們無法從 100 毫米晶圓尺寸過渡到 150 毫米晶圓尺寸，因為對我們產品的巨大需求使我們的工廠保持滿負荷運轉，使我們基本上沒有停工時間來進行過渡。鑑於對我們產品的強勁需求，我們預計至少在幾年內不會進行這種轉變。

As such, RF device products currently represent an approximately 300 basis point drag to our overall company gross margins. It's important to note that although RF products represent approximately 20% of our business today, it will represent only approximately 10% of our business over the long-range plan period. Therefore, we expect this impact to dissipate over time, but it will dampen gross margins in earlier periods of our long-range plan.

因此，射頻設備產品目前對我們公司的整體毛利率造成約 300 個基點的拖累。值得注意的是，儘管射頻產品目前約占我們業務的 20%，但在長期計劃期間，它僅占我們業務的 10% 左右。因此，我們預計這種影響會隨著時間的推移而消散，但它將抑制我們長期計劃早期的毛利率。

As a result of these impacts to our gross margins, we generated adjusted earnings per share of negative $0.04 in the fiscal first quarter compared to negative $0.02 a quarter ago and negative $0.21 in the same period last year.

由於這些對我們毛利率的影響，我們在第一財季的調整後每股收益為負 0.04 美元，而上一季度為負 0.02 美元，去年同期為負 0.21 美元。

Now before I discuss our guidance, let me provide a quick overview of our balance sheet position. We ended the quarter with approximately $1.2 billion of cash and liquidity on our balance sheet to support our growth plans. DSO was 50 days, while inventory days on hand was 135 days, which is 2 days lower than Q4.

現在，在我討論我們的指導之前，讓我快速概述一下我們的資產負債表狀況。在本季度末，我們的資產負債表上有大約 12 億美元的現金和流動性來支持我們的增長計劃。 DSO 為 50 天，而庫存天數為 135 天，比第四季度低 2 天。

Free cash flow during the quarter was negative $79 million, comprised of negative $13 million of operating cash flow and $66 million of capital expenditures. During the quarter, we incurred start-up costs primarily related to Mohawk Valley totaling approximately $38 million which is in line with our expectations we outlined from last quarter.

本季度的自由現金流為負 7900 萬美元，其中包括負 1300 萬美元的運營現金流和 6600 萬美元的資本支出。在本季度，我們產生了主要與莫霍克谷相關的啟動成本，總計約 3800 萬美元，這與我們在上個季度概述的預期一致。

We expect an additional $34 million of start-up and underutilization costs in the second quarter. We included a non-GAAP adjustment for these start-up costs and a reconciliation table in our earnings release.

我們預計第二季度將增加 3400 萬美元的啟動和未充分利用成本。我們在收益發布中包含了對這些啟動成本的非公認會計原則調整和對賬表。

Now moving on to our fiscal second quarter outlook. We are targeting revenue in the range of $215 million to $235 million. We continue to see increasing demand for our products, both in the short and long term, but our revenue outlook continues to be supply and capacity driven.

現在繼續我們的第二財季展望。我們的目標收入在 2.15 億美元到 2.35 億美元之間。我們繼續看到對我們產品的短期和長期需求不斷增加，但我們的收入前景繼續受供應和產能驅動。

From a supply perspective, we expect our revenue to be impacted by lower yields in our materials business, as previously mentioned, and we are also seeing longer lead times on spare parts reducing tool availability and output in our Durham fab.

從供應的角度來看，我們預計我們的收入將受到材料業務產量下降的影響，如前所述，我們還看到備件的交貨時間延長，降低了我們達勒姆工廠的工具可用性和產量。

We believe we are making steady progress on improving the materials yields. And based on current lead times, we expect to see fab output recover by early fiscal Q3. Our Q2 non-GAAP gross margin is expected to be in the range of 33% to 35%.

我們相信我們在提高材料產量方面取得了穩步進展。根據目前的交貨時間，我們預計晶圓廠產量將在第三財季初恢復。我們的第二季度非公認會計原則毛利率預計在 33% 至 35% 之間。

We expect gross margin will be similarly impacted by the material substrate yields previously mentioned driving performance down approximately 160 basis points quarter-over-quarter. Therefore, we believe our revenue and gross margin growth trajectory to be delayed 1 to 2 quarters as we resolve the yield and supply challenges we are currently experiencing.

我們預計毛利率將受到前面提到的材料基板產量的類似影響，導致業績環比下降約 160 個基點。因此，我們認為，隨著我們解決目前面臨的產量和供應挑戰，我們的收入和毛利率增長軌跡將推遲 1 到 2 個季度。

We do, however, expect revenue and gross margin expansion to resume in the back half of the fiscal year and anticipate achieving the $1 billion revenue quarterly run rate early in the back half of the fiscal year. We expect non-GAAP operating expenses of approximately $97 million for the second quarter of fiscal year 2023, and we expect Q2 non-GAAP operating loss to be between $26 million and $15 million.

然而，我們確實預計收入和毛利率將在本財年後半段恢復增長，並預計在本財年後半段早些時候實現 10 億美元的季度收入運行率。我們預計 2023 財年第二季度的非 GAAP 運營費用約為 9700 萬美元，我們預計第二季度非 GAAP 運營虧損將在 2600 萬美元至 1500 萬美元之間。

We believe that we will realize approximately $5 million of non-GAAP tax benefits as a result, expect Q2 non-GAAP net loss to be between $20 million and $10 million or a loss of $0.16 to $0.08 per diluted share. Our non-GAAP EPS target excludes acquired intangibles amortization, noncash stock-based compensation, project transformation and transaction costs, factory start-up and underutilization costs and other items outlined in our press release today.

我們相信，我們將因此實現約 500 萬美元的非 GAAP 稅收優惠，預計第二季度非 GAAP 淨虧損將在 2000 萬美元至 1000 萬美元之間，或攤薄後每股虧損 0.16 美元至 0.08 美元。我們的非公認會計原則每股收益目標不包括收購的無形資產攤銷、基於非現金股票的薪酬、項目轉型和交易成本、工廠啟動和利用不足成本以及我們今天新聞稿中概述的其他項目。

As always, our Q2 targets are based on several factors that could vary greatly, including the situation with COVID-19, overall demand, product mix, factory productivity and the competitive environment.

與往常一樣，我們的第二季度目標基於幾個可能有很大差異的因素，包括 COVID-19 的情況、整體需求、產品組合、工廠生產力和競爭環境。

During the quarter, we also announced plans to construct the world's largest materials factory, Siler City, North Carolina, and we are also evaluating further expansion of our device capacity. The construction of this new North Carolina facility will require significant investment from our end. We believe that it's prudent at this time to increase our CapEx guidance from $550 million last quarter to approximately $1 billion for the fiscal year 2023 to reflect the increased investments and support the higher revenue growth we outlined on last quarter's earnings call.

本季度，我們還宣布了在北卡羅來納州 Siler City 建設全球最大材料工廠的計劃，我們也在評估進一步擴大我們的設備產能。這個北卡羅來納州新設施的建設將需要我們的大量投資。我們認為，此時將我們的資本支出指引從上一季度的 5.5 億美元增加到 2023 財年的約 10 億美元是謹慎的做法，以反映增加的投資並支持我們在上一季度財報電話會議上概述的更高收入增長。

We continue to explore multiple avenues to finance these capital investments and are extremely encouraged by the conversations we have had to date. Our shareholders are top of mind in pursuing this funding. So we will explore all options with a goal of minimizing both our cost of capital and dilution.

我們繼續探索多種途徑來為這些資本投資提供資金，並且對我們迄今為止的對話感到非常鼓舞。我們的股東是尋求這筆資金的首要任務。因此，我們將探索所有選項，目標是最大限度地降低我們的資本成本和稀釋成本。

As a reminder, we have many funding paths at our disposal, most of which have little or no dilution impact. This includes government incentives, customer capacity upfront payments, and private or project debt based financing as well as going to the public markets as we have done previously.

提醒一下，我們有許多可供使用的融資途徑，其中大部分幾乎沒有或沒有稀釋影響。這包括政府激勵措施、客戶容量預付款、私人或項目債務融資以及我們之前所做的進入公共市場。

We are currently focused on the less dilutive financing options, and we will continue to remain flexible as we manage through variation in the capital markets. What is clear is that demand for our product continues to be strong, both in the short and long term, and we will continue to invest in capacity to address this multi-decade growth opportunity.

我們目前專注於稀釋性較小的融資方案，我們將繼續保持靈活性，因為我們通過資本市場的變化進行管理。顯而易見的是，無論是短期還是長期，對我們產品的需求都將持續強勁，我們將繼續投資產能以應對這一數十年的增長機會。

With that, I'll pass it back to Gregg.

有了這個，我會把它傳回給格雷格。

Thanks, Neill. We are very encouraged with the market trends and with our progress to capture a sizable share of the opportunities in our pipeline. One of the things underpinning our confidence is the breadth of our total design-in portfolio. The electric vehicle has been and will continue to be the driving force behind the broad adoption of silicon carbide. As industry supply scales and cost declined, this is also opening up the door for other applications in the industrial and energy sectors.

謝謝，尼爾。我們對市場趨勢和我們在管道中抓住相當大一部分機會的進展感到非常鼓舞。支撐我們信心的一件事是我們整體設計產品組合的廣度。電動汽車已經並將繼續成為廣泛採用碳化矽的驅動力。隨著行業供應規模和成本的下降，這也為工業和能源領域的其他應用打開了大門。

Just to get a sense of our Q1 design-in profile, approximately 90% was tied to automotive, whereas the remaining 10% was for industrial and energy and RF applications. The Q1 design-in total is a 9x increase for automotive year-over-year. And Industrial and Energy and RF increased more than 95% from a year ago.

只是為了了解我們的第一季度設計概況，大約 90% 與汽車相關，而其餘 10% 與工業、能源和射頻應用相關。第 1 季度的汽車設計總量同比增長 9 倍。工業和能源和射頻比一年前增長了 95% 以上。

This quarter's design-ins include an interesting range of applications, including weather radar, wireless EV bus charging, a welding machine and a motor drive application. To service this rapid growth in demand for silicon carbide, during the quarter, we announced our Siler City materials factory, which will be the world's largest silicon carbide factory when it opens up in 2024.

本季度的設計包括一系列有趣的應用，包括氣象雷達、無線 EV 巴士充電、焊機和電機驅動應用。為了滿足對碳化矽需求的快速增長，我們在本季度宣布了我們的 Siler City 材料工廠，該工廠將在 2024 年開業時成為全球最大的碳化矽工廠。

The substates produced there will help drive down the cost of devices and expand silicon carbide adoption across even more markets. Our new materials factory in combination with our plan to build out both the remainder of our Mohawk Valley factory and yet to the announced second fab will support this goal and should help us achieve significant scale.

在那裡生產的子狀態將有助於降低設備成本並擴大碳化矽在更多市場的採用。我們的新材料工廠與我們計劃建設莫霍克谷工廠的剩餘部分和尚未宣布的第二家工廠將支持這一目標，並應幫助我們實現顯著規模。

And speaking of Mohawk Valley, the fab continues to make great strides in its ramp. During the quarter, we successfully ran full flow lots in the fab. And not only have we been able to run these lots, but we are very encouraged by the yields we are seeing at such an early stage.

說到莫霍克谷，這家晶圓廠繼續在坡道上取得長足的進步。在本季度，我們成功地在晶圓廠中運行了全流程。我們不僅能夠經營這些地段，而且我們對我們在如此早期階段看到的產量感到非常鼓舞。

We are still on track to deliver devices from Mohawk Valley in the second half of fiscal 2023 and plan to share an update on our progress at our Investor Day on Monday. The multi-decade opportunity in power devices requires far greater capacity investment and as soon as possible.

我們仍有望在 2023 財年下半年從莫霍克谷交付設備，併計劃在周一的投資者日分享我們的最新進展。功率器件的數十年機遇需要更大的產能投資並儘快完成。

We will continue to address near-term puts and takes in Durham and RF as we continue to bolster our leadership position in silicon carbide. We will need to raise a significant amount of capital which will go towards investments in the necessary infrastructure to support growth.

隨著我們繼續鞏固我們在碳化矽領域的領導地位，我們將繼續處理近期的 Durham 和 RF 看跌期權。我們將需要籌集大量資金，用於投資必要的基礎設施以支持增長。

As a result, free cash flow generation will be pushed out a few years. Margin progression will likely be muted in the near term due to the Durham and RF dynamics mentioned earlier. However, we continue to believe Mohawk Valley will help improve margin trajectory as it comes online. This fiscal year, demand for our products continues to outstrip supply and our revenue will be gated by the speed at which we can increase output. That being said, we still expect top line year-over-year growth north of 30%.

結果，自由現金流的產生將被推遲幾年。由於前面提到的達勒姆和射頻動態，短期內利潤增長可能會減弱。然而，我們仍然相信莫霍克谷上線後將有助於改善利潤率軌跡。本財年，對我們產品的需求繼續超過供應，我們的收入將取決於我們增加產量的速度。話雖如此，我們仍預計收入同比增長將超過 30%。

When I started at Wolfspeed 5 years ago, a key theme of RF with refocusing the business. I am proud of the progress the team has made in that regard, but there is more work to be done. There will be challenges driven by the unprecedented demand in silicon carbide but overall, we are extremely encouraged by the dynamics that underpin these challenges.

當我 5 年前開始在 Wolfspeed 時，RF 的一個關鍵主題是重新聚焦業務。我為團隊在這方面取得的進展感到自豪，但還有更多工作要做。碳化矽前所未有的需求將帶來挑戰，但總體而言，我們對支撐這些挑戰的動力感到非常鼓舞。

I look forward to discussing these topics in more detail during our Investor Day on October 31 at the New York Stock Exchange. We'll give further update on our strategic initiatives and long-term financial model. If you have not registered for the Investor Day, please do so by this Friday by contacting our Investor Relations team.

我期待在 10 月 31 日在紐約證券交易所舉行的投資者日期間更詳細地討論這些話題。我們將進一步更新我們的戰略舉措和長期財務模式。如果您尚未註冊投資者日，請在本週五之前聯繫我們的投資者關係團隊進行註冊。

And now I'll turn it over to the operator for questions.

現在我將把它交給接線員提問。

(Operator Instructions) Our first question of the day will come from Harsh Kumar of Piper Sandler.

（操作員說明）我們今天的第一個問題將來自 Piper Sandler 的 Harsh Kumar。

So question on the near term. Gregg, when I look at your business, all the design-in design win trends are pointing upward. But I'm looking at the December quarter guidance, which is sequentially down. I know you mentioned a handful of things such as spare parts availability, also the longer bulls.

所以在短期內提問。格雷格，當我查看您的業務時，所有設計中的設計獲勝趨勢都指向上方。但我正在查看 12 月季度的指引，該指引依次下降。我知道你提到了一些事情，比如備件的可用性，還有更長的公牛。

I was curious, is this what is impacting your ability to be able to grow in the December quarter? And then just -- or is there something else that's going on, that's worth noting? And then I had a follow-up.

我很好奇，這是否會影響您在 12 月季度實現增長的能力？然後只是 - 或者還有其他事情正在發生，這是值得注意的嗎？然後我進行了跟進。

Thanks for the question, Harsh. Yes, it is exactly that. Basically, it's taller bulls and some yield issues we have processing them in the back end and the lead time on spare parts of older fab equipment inside the factory. Basically, it's those 2 issues that are limiting our output. Our near-term demand from customers is up as is our longer-term demand. In fact, our unfulfilled demand is increasing this quarter due to this limitation that we have. So that's exactly what it is.

謝謝你的問題，苛刻。是的，就是這樣。基本上，這是更高的公牛和一些產量問題，我們在後端處理它們以及工廠內舊晶圓廠設備備件的交貨時間。基本上，正是這兩個問題限制了我們的輸出。我們客戶的近期需求和我們的長期需求都在上升。事實上，由於我們的限制，本季度我們未滿足的需求正在增加。所以這正是它的本質。

I might mention, though, that taller bulls are a really good thing. And as we've done a really good job of refining the back end of our process here. So as we come out of that and we have [yields] back to where we believe we can get them to be -- these taller bulls are going to be a substantially good thing for us.

不過，我可能會提到，更高的公牛是一件非常好的事情。因為我們在完善流程的後端方面做得非常好。因此，當我們走出困境並且我們已經 [收益率] 回到我們認為可以讓它們達到的水平時——這些更高的公牛對我們來說將是一件非常好的事情。

Got it, Gregg. And then for my follow-up, Gregg, I wanted to ask about the gross margin. A similar sort of question. I was curious if you could sort of like split the gross margin difference on the downtick between, hey, is this a bigger problem that's coming from the longer bulls? Or is this a spare parts issue? And also maybe help us think about some color on when these issues might get resolved, Gregg, if possible.

明白了，格雷格。然後對於我的後續行動，格雷格，我想問一下毛利率。類似的問題。我很好奇你是否可以將下跌時的毛利率差異分開，嘿，這是來自長期多頭的更大問題嗎？還是這是備件問題？如果可能的話，Gregg 還可以幫助我們思考這些問題何時可以得到解決。

Harsh, it's Neill. I'll take a shot at that. I think if you look both at revenue and gross margin, the issues are really the same, the same 2 things that we're seeing.

苛刻，是尼爾。我會試一試。我認為，如果您同時查看收入和毛利率，問題實際上是相同的，與我們所看到的兩件事相同。

The output related to the taller bulls has been challenged based on the yields, we'll see that impact both revenue and gross margin, although I'll say that I think we've hit the bottom there on the yield issue. We're starting to work our way up. So we're kind of flushing through some of that higher cost inventory as we start to manage through this.

與較高多頭相關的產出受到了收益率的挑戰，我們將看到這對收入和毛利率都有影響，儘管我會說我認為我們在收益率問題上已經觸底。我們開始努力向上。因此，當我們開始管理這一點時，我們正在清理一些成本較高的庫存。

I'd say the same thing in terms of the Durham fab production. We have some tool availability challenges related to shortage of spare parts and older equipment. We've been impacted by some supply challenges clearly and that's something we've really avoided largely in the last couple of years.

就達勒姆工廠的生產而言，我也會說同樣的話。我們面臨一些與備件短缺和舊設備有關的工具可用性挑戰。我們顯然受到了一些供應挑戰的影響，而這是我們在過去幾年中真正避免的事情。

So we've been bit by that a little bit here. That will drive our device revenue down quarter-over-quarter in the margins as well. But again, once we see this (inaudible) currently times come in, we'll start seeing production kind of pick up again on the fab. So I think in both cases, both revenue margin are being impacted by the same 2 issues.

所以我們在這裡有點受夠了。這也將推動我們設備收入的利潤率環比下降。但同樣，一旦我們看到這個（聽不清）當前時間到來，我們將開始看到晶圓廠的生產再次回升。所以我認為在這兩種情況下，兩個利潤率都受到相同的兩個問題的影響。

I see these as being temporary in nature. It's kind of a 1-quarter dip in both revenue and gross margin -- and gross margin. And we see ourselves as returning to stronger revenue margin growth in 3Q and beyond, possibly even being at that kind of $1 billion annualized kind of revenue run rate by 3Q and really back on trajectory by 4Q. So you could think of these kind of manufacturing and supply issues just driving a 1 or 2 quarter impact on the revenue margin trajectory.

我認為這些本質上是暫時的。收入和毛利率以及毛利率都下降了一個季度。我們認為自己將在第三季度及以後恢復更強勁的收入利潤率增長，甚至可能在第三季度達到 10 億美元的年化收入運行率，並在第四季度真正回到正軌。因此，您可以認為這些製造和供應問題只會對收入利潤率軌跡產生 1 或 2 個季度的影響。

And our next question is from the line of Brian Lee of Goldman Sachs.

我們的下一個問題來自高盛的 Brian Lee。

And then maybe just to follow up on Harsh's question. You sort of alluded to it a little bit, I think, Neill, but if we were trying to quantify the impact on the revenue outlook here for December, obviously, Gregg, you're saying your demand and unmet demand is higher.

然後也許只是為了跟進哈什的問題。尼爾，我想你有點提到它，但如果我們試圖量化對 12 月收入前景的影響，顯然，格雷格，你是說你的需求和未滿足的需求更高。

But how much -- if you could quantify, I know it's a tough question is coming from yield and how much is coming from the supply challenges. And if I take your comments that you're going to be at a $0.25 billion run rate by fiscal Q3, does that infer your like $25 million off of the level you would have guided to had you not had these 2 issues? Just trying to unpack what the moving pieces are and how much they're worth? And then I had a follow-up.

但是有多少——如果你可以量化的話，我知道這是一個棘手的問題，來自於產量以及有多少來自供應挑戰。如果我接受您的評論，即到第三財季您將達到 2.5 億美元的運行速度，這是否意味著您在沒有這兩個問題的情況下會達到 2500 萬美元的水平？只是試圖解開這些移動部件是什麼以及它們值多少錢？然後我進行了跟進。

Yes, it's hard to say exactly, Brian, but I think you're heading kind of in the right direction, so to speak. I think from a yield perspective on the taller bulls, like I said, we hit bottom there, we're starting to recover. We'll actually see substrate revenue start to increase going into this quarter. Just now that the trajectory we had previously anticipated. .

是的，很難準確地說，Brian，但我認為你的方向是正確的，可以這麼說。我認為從較高多頭的收益率的角度來看，就像我說的那樣，我們已經觸底，我們開始復蘇。我們實際上會看到基板收入在本季度開始增加。剛才那是我們之前預料到的軌跡。 .

And then from a fab perspective, it's really a function of getting these tools up and running and the lead times we have on spare parts and getting them running. We have the capacity, we have the tools, we need to run the revenue through them and then push it to the back end where we've got capacity as well. So it really is both on a revenue and margin perspective, these 2 issues are kind of slowing us down. And I think we'll come back up to that higher revenue trajectory you kind of referenced as we get to the back half of the year.

然後從晶圓廠的角度來看，這實際上是讓這些工具啟動和運行以及我們在備件上的交貨時間並讓它們運行的功能。我們有能力，我們有工具，我們需要通過它們運行收入，然後將其推送到我們也有能力的後端。因此，從收入和利潤率的角度來看，這兩個問題確實讓我們放慢了腳步。而且我認為我們會回到今年下半年時提到的更高的收入軌跡。

Okay. That's helpful. And then not to focus too much on the short term, but I think this does call into question kind of some of the cadences we're all modeling here through the next 1 year to 2. When we think about gross margins, you made a comment, you're going to see some recovery into fiscal Q3 back to where I think you were trending before the yield issues. So 35%, maybe 36% non-GAAP, that's where you were before this temporary downtick.

好的。這很有幫助。然後不要過分關注短期，但我認為這確實會質疑我們在接下來的 1 年到 2 年都在這裡建模的一些節奏。當我們考慮毛利率時，你做了一個評論，您將看到第三財季的一些復甦回到我認為您在收益率問題之前的趨勢。所以 35%，也許是 36% 非公認會計原則，這就是你在這次暫時下降之前的水平。

Is that where we're headed back to in the back half or -- because I think the original trajectory might have called for something in the higher 30s, maybe even reaching close to 40% exiting this fiscal year. But what trajectory are we kind of getting back to if that's the way we should be thinking about this being a 1- or 2-quarter phenomenon before you get to higher margins in the back half?

那是我們回到後半部分的地方，還是 - 因為我認為最初的軌跡可能需要在 30 多歲的時候有所作為，甚至可能在本財年達到接近 40% 的水平。但是，如果在後半場獲得更高利潤率之前，我們應該考慮這是一個 1 季度或 2 季度的現象，那麼我們會回到什麼樣的軌跡呢？

Yes. Obviously, we're going to be lower this quarter, but I do see us starting to expand margin again as we get back into Q3. It's a 1 to 2 quarter impact, Brian. So you kind of think of last quarter, we had some of that impact start. We're seeing more flush through here in Q2, you'll probably see some impact or maybe a less impact in Q3 as we start to expand again and then kind of back on track as it gets kind of a Q4 period.

是的。顯然，本季度我們會降低，但我確實看到隨著我們回到第三季度，我們開始再次擴大利潤率。這是一個 1 到 2 個季度的影響，Brian。所以你有點想上個季度，我們開始產生一些影響。我們在第二季度看到了更多的衝刺，隨著我們開始再次擴張，您可能會在第三季度看到一些影響或影響較小，然後隨著它進入第四季度，您可能會回到正軌。

And our next question is from the line of Jed Dorsheimer of William Blair.

我們的下一個問題來自 William Blair 的 Jed Dorsheimer。

So I guess, first question -- and when you talk about elongating the -- or lengthening the height of the bull, I'm not sure how well understood. But if you are going through a process change and have higher confidence in your recipe and elongate the duration of growth, while near term, you're going to see a yield hit that should result in less operating and maintenance because you're not going to be cleaning out that oven or furnace to be more precise as many times during the year.

所以我想，第一個問題——當你談到拉長——或加長公牛的高度時，我不確定如何理解。但是，如果您正在經歷流程變更並且對您的配方有更高的信心並延長增長持續時間，那麼在短期內，您將看到產量下降，這將導致更少的操作和維護，因為您不去在一年中清理烤箱或熔爐的次數要準確得多。

So I'm just wondering in the near term, as you see the hit on materials, I guess, would you mind unpacking sort of the benefit that you see too as to what's prompting you to make this move for the -- at the materials level? And then I have a follow-up.

所以我只是想在短期內，當你看到材料受到衝擊時，我猜，你是否介意解開你所看到的一些好處，即是什麼促使你為材料採取這一行動等級？然後我有一個跟進。

Okay, Jed. I'll take that. We obviously have a continuous process improvement program across all of our different businesses, and this is part of that. We are very excited about the quality of the bulls and the height of the bulls that we're now getting out of this process. So that is, we feel very, very good about that.

好的，傑德。我會接受的。我們顯然在我們所有不同的業務中都有一個持續的流程改進計劃，這就是其中的一部分。我們對公牛的質量和我們現在擺脫這個過程的公牛高度感到非常興奮。也就是說，我們對此感覺非常非常好。

And what we're really talking about is handling bulls in the back end of the flow that are sizably larger than what we historically have. So we -- as Neill said, we've made -- we've already talked about, we've got really good improvements in place, and we'll get back to where we need to be within a couple of quarters here. So I think that's moving all in the right direction.

我們真正談論的是在流程的後端處理多頭，這些多頭比我們歷史上擁有的要大得多。所以我們——正如尼爾所說，我們已經做到了——我們已經談論過，我們已經有了非常好的改進，我們將在幾個季度內回到我們需要的地方。所以我認為這一切都朝著正確的方向發展。

And the benefit, Jed, is exactly as you alluded, I mean, basically, you're going to get more wafers for (inaudible) and that will increase the output and decrease the cost. So these are -- as we -- as we improve the back end of the flow here, this is going to be a real good thing.

Jed 的好處正如你所暗示的那樣，我的意思是，基本上，你將獲得更多的晶圓（聽不清），這將增加產量並降低成本。所以這些是 - 正如我們 - 當我們在這裡改進流程的後端時，這將是一件真正的好事。

Got it. That's helpful in what I thought. So I guess, just as my follow-up question, with respect to Mohawk Valley, I was wondering if you would update if you don't mind, where you're at. I think the milestone was sort of running customer silicon.

知道了。這對我的想法很有幫助。所以我想，就像我的後續問題一樣，關於莫霍克山谷，我想知道如果你不介意，你是否會更新，你在哪裡。我認為里程碑是運行客戶芯片。

And -- where are you at with Mohawk Valley to maybe help with confidence in terms of getting back to that or getting to the -- that run rate that you talked about?

而且 - 你在莫霍克山谷的哪個位置可能有助於恢復或達到你所說的運行速度？

Yes. So Jed, we've had a number of full flow wafer lots go through the fab. All of the full flow wafer fab (inaudible) have been through the fab, have yielded good electrical [value] or [good chips] and we're very pleased with the yield numbers that we're seeing right now. That's all looking, I would say, as good as it can get, so to it's really looking pretty good.

是的。所以傑德，我們已經有許多全流程晶圓通過晶圓廠。所有全流程晶圓廠（聽不清）都已通過該晶圓廠，產生了良好的電氣[價值]或[良好的芯片]，我們對我們現在看到的產量數字感到非常滿意。這一切看起來，我想說，盡可能好，所以它看起來真的很不錯。

And in fact, we have so much confidence that we're actually running material right now that is meant to qualify the fab. That is well ahead of any schedule that you would might imagine. So we're really excited about that. One on qualify that -- customers who need qualify the parts, so typically that's something that most semiconductor companies have kind of grab the customers and kind of pull along working on that.

事實上，我們非常有信心，我們現在實際上正在運行旨在使晶圓廠合格的材料。這遠遠超出了您可能想像的任何時間表。所以我們對此感到非常興奮。一個是合格的——需要對零件進行合格的客戶，所以通常這是大多數半導體公司都會抓住客戶並在這方面努力的事情。

I think with the supply-demand mismatch, we have a lot more customers that are volunteering to be sort of the first in the fab and they want to have their chips follow (inaudible), et cetera. So I would anticipate the customer qualification process to be different than normal. It would be probably a lot more of them jumping in and qualifying faster than normal. All that said is that we should be shipping revenue out of that fab by the end of this fiscal year.

我認為由於供需不匹配，我們有更多的客戶自願成為晶圓廠的第一批客戶，他們希望自己的芯片緊隨其後（聽不清），等等。因此，我預計客戶資格認證過程將與正常情況不同。他們中的更多人可能會比平時更快地參加比賽並獲得排位賽。也就是說，我們應該在本財政年度結束前將收入從該晶圓廠中運出。

And our next question is from the line of Samik Chatterjee of JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

I guess if I could just ask a clarification on the commensurate of the Mohawk ramp. The supply issues or the issues on parts, et cetera, that you're referencing today. Just wanted to confirm here that is that impacting your ramp on Mohawk as well? Or is that an issue with sort of old parts or old equipment and not really something that carries over to how you're ramping Mohawk.

我想我是否可以就莫霍克坡道的相應問題進行澄清。您今天提到的供應問題或零件問題等。只是想在這裡確認這是否也會影響您在莫霍克的坡道？或者這是舊零件或舊設備的問題，而不是真正影響你如何提升莫霍克的問題。

And relative to the same issue, Neill, you are sort of giving some guidance about when you see gross margin expand again, does that then include your thinking in terms of revenue and gross margin impact from Mohawk in the back half of this year, the impact as more comes into the non-GAAP number? And then I have a quick follow-up.

相對於同一個問題，尼爾，你在某種程度上給出了一些關於何時看到毛利率再次增長的指導，這是否包括你對今年下半年莫霍克的收入和毛利率影響的思考，隨著非公認會計準則數字的增加，影響？然後我有一個快速跟進。

Thank you. I'll take the beginning part of that, and Neill can handle the back end of it. The spare parts issue is really related to older fab equipment in our term in our North Carolina where that's not anything to do with Mohawk Valley.

謝謝你。我將負責其中的開始部分，而尼爾可以處理它的後端。備件問題實際上與我們在北卡羅來納州的舊晶圓廠設備有關，這與莫霍克谷無關。

Recall, we began building Mohawk Valley in March of 2020. We started installing equipment in 2021, we did a lot of preordering of long lead time type equipment. And a lot of this was done before other semiconductor companies decided to start building wafer fab. So we've actually done a pretty good job of getting on ahead of the long lead time items in Mohawk Valley.

回想一下，我們於 2020 年 3 月開始建造莫霍克山谷。我們於 2021 年開始安裝設備，我們對長交貨期類型的設備進行了大量預購。其中很多都是在其他半導體公司決定開始建造晶圓廠之前完成的。因此，我們實際上已經在莫霍克谷的長交貨時間項目之前做得很好。

And then finally, I would just add that those obviously are brand-new machines, modern equipment. We're not looking for spare parts for those machines and the availability of those in any case, would be likely a lot better than some machine that we've had in our factory for 20 years or so. So bottom line is no impact on that at all in Mohawk Valley. And then Neill if you can -- if you get back end of that margin.

最後，我要補充一點，這些顯然是全新的機器，現代設備。我們不是在為這些機器尋找備件，無論如何，這些機器的可用性可能比我們工廠使用了 20 年左右的某些機器要好得多。因此，在莫霍克山谷，底線對此完全沒有影響。然後尼爾，如果可以的話 - 如果你得到那個邊距的後端。

Yes. Just from a margin perspective, actually, I think, as Gregg kind of laid out, I think we're in good shape from a supply perspective in Mohawk Valley. And the yields that we've seen off these initial lots seems really positive. It's something we're really enthused about. So I think that just gives us more confidence about ramp.

是的。實際上，從利潤率的角度來看，我認為，正如格雷格所說的那樣，從莫霍克谷的供應角度來看，我認為我們的狀況良好。我們從這些初始批次中看到的收益率似乎非常積極。這是我們非常熱衷的事情。所以我認為這讓我們對斜坡更有信心。

And as I said many times, the margin trajectory, you kind of get in the back half of this year and then eventually into '24 and beyond, it could be largely based on Mohawk Valley and the initial signs of what's coming at that were very, very positive. So -- it will still be a little bit of a timing issue. We'll see what happens in terms of qualifications, as Gregg talked about, we're already starting material to that. But let's see what the timing looks like there.

正如我多次說過的那樣，利潤率軌跡，你會在今年下半年進入，然後最終進入 24 年及以後，它可能主要基於莫霍克谷，並且即將發生的事情的初步跡象非常，非常積極。所以——這仍然是一個時間問題。正如格雷格所說，我們將看看資格方面會發生什麼，我們已經開始著手做這件事了。但是讓我們看看那裡的時間安排如何。

But I think we're kind of all systems go and things were very positive from bringing Mohawk Valley in the back half of the year from a revenue perspective, and that will certainly help underpin some margin expansion as well.

但我認為我們的所有系統都在運行，從收入的角度來看，莫霍克谷在今年下半年帶來了非常積極的結果，這肯定也有助於鞏固一些利潤率擴張。

Got it. And a quick follow-up on the RF issue that you're highlighting relative to not being able to change over to 150 mm just because of high demand that you're seeing. I'm just wondering like, was that something that was sort of known for like you had more sort of insight into a few quarters ago and sort of decided that this was the quarter where you were going to switch over?

知道了。并快速跟進您正在強調的射頻問題，因為您看到的需求量很大，因此無法切換到 150 毫米。我只是想知道，您是否對幾個季度前有更多的洞察力並決定這是您要轉換的季度？

Like what was the exact sort of timing -- time lines that it played out? And because I would have assumed if you were to switch over, you would have sort of buffered both in terms of margins and revenue in the quarter itself in terms of that change over time, but maybe I'm missing something there.

就像確切的時間安排——它發揮的時間線是什麼？而且因為我會假設如果你要切換，你會在本季度本身的利潤率和收入方面隨著時間的變化而有所緩衝，但也許我在那裡遺漏了一些東西。

I think that's largely correct. I think that a year ago, we were at our Investor Day because it's something that was in our plans. And I think as the demand has continued to strengthen and strengthen its leaves our factories very, very full. And from that perspective, we've kind of increasing demand. It's just really left us no option but to kind of delay that transition from 100-millimeter to 150-millimeter in the RF product because there really hasn't been any downtime.

我認為這在很大程度上是正確的。我認為一年前，我們參加了投資者日，因為這是我們計劃中的事情。而且我認為隨著需求的持續增強和增強，我們的工廠非常非常滿。從這個角度來看，我們的需求在增加。這真的讓我們別無選擇，只能延遲射頻產品從 100 毫米到 150 毫米的過渡，因為真的沒有任何停機時間。

So the way I would think about it over the last 6 to 8 months is we've been kind of incrementally looking for opportunities to kind of make the transition, but the demand has gotten to such a point that we haven't fully been able to take the downtime and the downtime to kind of make go ahead and make that transition.

因此，在過去的 6 到 8 個月裡，我的想法是，我們一直在逐步尋找機會進行過渡，但需求已經達到了我們還沒有完全能夠做到的地步採取停機時間和停機時間來繼續進行並進行過渡。

So what that means from a margin transition standpoint, as I mentioned in the prepared remarks, is that about a 300 basis point drag on margins as you think about getting to that kind of '23, '24 time frame, and we'll just kind of work with that as we go out now. This is all, again, really just driven by the demand that we're seeing. So as you look out into the longer-term goal in 2016 and beyond, as I mentioned, Mohawk Valley, kind of 200-millimeter substrate and the power device cost structure still looks very good, but we just don't have a downtime to make a transition on the RF side as we're sitting here today.

因此，正如我在準備好的評論中提到的那樣，從保證金過渡的角度來看，這意味著當您考慮進入那種 '23、'24 時間框架時，保證金會拖累大約 300 個基點，我們將只是當我們現在出去的時候，有點像這樣的工作。同樣，這一切實際上只是由我們所看到的需求驅動的。所以當你展望 2016 年及以後的長期目標時，正如我所提到的，莫霍克谷，一種 200 毫米基板和功率器件成本結構看起來仍然非常好，但我們只是沒有停機時間在我們今天坐在這裡的時候，在 RF 方面進行過渡。

Our next question is from the line of Colin Rusch of Oppenheimer.

我們的下一個問題來自奧本海默的 Colin Rusch。

Can you talk a little bit about the composition of these design-ins. How much of this is coming from medium and heavy duty and some of the higher-voltage applications that may be out there?

你能談談這些設計插件的組成嗎？其中有多少來自中型和重型以及可能存在的一些高壓應用？

So this past quarter, 90% of the design-ins came from automotive, and we're seeing a tremendous positive adoption of silicon carbide in electric vehicles and a significantly steepening adoption of electric vehicles in the overall automotive market. And those 2 things are driving it up and to the right. I think the car manufacturers are well aware that range is a really big deal for our customers and the rate at which you can refuel so to speak or recharge your car is a big deal.

因此，在上個季度，90% 的設計導入來自汽車，我們看到碳化矽在電動汽車中的積極採用以及電動汽車在整個汽車市場中的採用率顯著增加。這兩件事正在推動它向上和向右。我認為汽車製造商很清楚，續航里程對我們的客戶來說真的很重要，可以說加油或給汽車充電的速度很重要。

Both of those drive higher voltages, which make the impact of using silicon carbide over silicon, much more pronounced in a positive way. So I think all of those things are driving that adoption. Outside of that, we have really whole smattering of different design-ins across the industrial and the RF based applications. And we talked a little bit about what those ranges are.

這兩者都驅動更高的電壓，這使得使用碳化矽對矽的影響以積極的方式更加明顯。所以我認為所有這些都在推動這種採用。除此之外，我們在工業和基於 RF 的應用中擁有完全不同的設計。我們談到了這些範圍是什麼。

And then finally, as Neill has mentioned, north of 40% of our design-ins have converted to a design win. And that means customers are beginning to ramp in production. That is -- that combined with the amount of design-ins we've had is really kind of unprecedented. At least I've never seen anything like it.

最後，正如尼爾所提到的，我們 40% 以上的設計已經轉化為設計勝利。這意味著客戶開始增加產量。那就是 - 再加上我們擁有的設計數量真的是前所未有的。至少我從未見過這樣的事情。

We've done $3.5 billion of design-ins this quarter, $2.6 billion last quarter, $1.6 billion and $1.6 billion 2 quarters before. There's $9.3 billion of design-ins we've got, it's unprecedented and it's just driving an enormous increase in our revenue near term and certainly the revenue outlook.

我們本季度完成了 35 億美元的設計投入，上一季度為 26 億美元，前兩個季度為 16 億美元和 16 億美元。我們有 93 億美元的設計投入，這是史無前例的，它只是推動了我們近期收入的巨大增長，當然還有收入前景。

Okay. And then just thinking about the cadence of potential debt financing, is that something -- how mature is that process, are you guys now from a project level in terms of bringing some of that capital in to support this CapEx that for the balance of the year because it's a pretty healthy number that you guys are looking at spending.

好的。然後只是考慮潛在債務融資的節奏，這是什麼 - 這個過程有多成熟，你們現在是否從項目層面引入一些資金來支持這個資本支出，以實現平衡年，因為這是一個非常健康的數字，你們正在考慮支出。

So just from a financing perspective, just let me just remind you that we've been far ahead of this we've got $1.2 billion of cash on the balance sheet. And in addition to lifetime with the capacity plan that we laid out a year ago at Investor Day, we've seen our kind of CapEx step down over the last quarters. You saw it was $56 million this quarter and just $55 million in quarter 4.

因此，僅從融資的角度來看，讓我提醒您，我們已經遙遙領先，我們的資產負債表上有 12 億美元的現金。除了我們一年前在投資者日制定的產能計劃之外，我們還看到我們的資本支出在過去幾個季度有所下降。您看到本季度為 5600 萬美元，而第四季度僅為 5500 萬美元。

Now I do think our forward we'll start to see a step up in the capital expenditures kind of in line with what we're talking about. I think about that sort of pick up in the back half of the year. So we have a little bit of time to go work this.

現在我確實認為我們的前鋒我們將開始看到資本支出的增加，這與我們所說的一致。我想到了下半年的那種回升。所以我們有一點時間去做這件事。

So still do need to go out and do some funding to support that. Dilution as it relates to that financing is absolutely on top of our mind. And there's really 4 buckets that we're looking at in terms of executing that financing, most of which are not dilutive.

所以仍然需要出去做一些資金來支持它。與融資相關的稀釋絕對是我們的首要考慮。在執行該融資方面，我們確實正在考慮 4 個桶，其中大多數都不會稀釋。

The first is government incentives. We've been very close to both the governments in the United States and outside of the U.S. and we will be in a position to benefit significantly from incentives, both in our wafer fab expansion as well as the investment in materials factory in North Carolina.

首先是政府激勵。我們與美國和美國以外的政府都非常接近，我們將能夠從激勵措施中受益匪淺，無論是在我們的晶圓廠擴張還是對北卡羅來納州材料工廠的投資。

We've also got $300 million of incentives remaining with our partnership with the State of New York. We're also working closely with customers and upfront payments for capacity. It is obviously not dilutive. And then we've also got private finance or project financing. And then lastly, we can move in then to public markets like we've done before.

通過與紐約州的合作，我們還獲得了 3 億美元的獎勵。我們還與客戶密切合作並預付容量。這顯然不是稀釋劑。然後我們還有私人融資或項目融資。最後，我們可以像以前那樣進入公開市場。

So the lower dilution options on that list is where we are currently focused, just given that step-up in CapEx in the back half of the year. So we will want to get something done in that -- in advance of some of those bigger spends that we're talking about and the investments that we're making and that's what we're focused on right now. So we'll lay this down in more detail as we get into our update in New York and New York next week.

因此，鑑於今年下半年資本支出的增加，該列表中較低的稀釋選項是我們目前關注的重點。因此，我們將希望在這方面完成一些事情 - 在我們正在談論的一些更大的支出和我們正在進行的投資之前完成，這就是我們現在關注的事情。因此，當我們下週在紐約和紐約進行更新時，我們將更詳細地闡述這一點。

Our next question is from the line of Vivek Arya of Bank of America.

我們的下一個問題來自美國銀行的 Vivek Arya。

This is Blake Friedman on for Vivek. Just want to focus on the materials business quickly. I know you've mentioned historically about holding 60% market share, in that business and not to get ahead of the Analyst Day, but I was just curious how feasible it will be to maintain this level of share as we see new market entrants and also an increasing number of vendors internally sourced capacity moving forward.

這是 Vivek 的布萊克弗里德曼。只想快速專注於材料業務。我知道你在歷史上提到過在該業務中持有 60% 的市場份額，而不是在分析師日之前，但我只是好奇，當我們看到新的市場進入者和越來越多的供應商內部採購的產能也在向前發展。

Yes, I'll take that. Basically, the silicon carbide market is growing very, very, very rapidly. And I think the supply is going to be chasing demand probably through the end of this decade, where it's just going to be tough to keep up with it. That obviously attracts people to the market. And certainly, all of our silicon carbide materials customers, I don't know all of them, but most of them have plans to trying to develop their own substrates and so forth.

是的，我會接受的。基本上，碳化矽市場正在非常、非常、非常迅速地增長。而且我認為供應可能會在本十年結束時追逐需求，而要跟上它將很難。這顯然會吸引人們進入市場。當然，我們所有的碳化矽材料客戶，我都不認識所有客戶，但他們中的大多數人都計劃嘗試開發自己的基板等等。

And I think that's a smart idea, a good plan, and it's something that I would do if I was in their shoes. I think they'll probably find it a little bit more challenging than I would expect, I think they'll [attract] but I think that's basically how we're thinking about it, and we're thinking that they're going to invest and deliver on what they set out to do.

我認為這是一個聰明的想法，一個好的計劃，如果我站在他們的立場上，我會這樣做。我認為他們可能會發現它比我預期的更具挑戰性，我認為他們會[吸引]但我認為這基本上是我們的想法，我們認為他們會投資並實現他們的目標。

So that being said, we've had a modest thought process in terms of what we're going to do from a market share standpoint, basically hold share of that external market. And some of the internal demand would be satisfied by the internal capabilities of these companies.

話雖如此，從市場份額的角度來看，我們將要做的事情有一個適度的思考過程，基本上是保持該外部市場的份額。這些公司的內部能力將滿足一些內部需求。

Helpful, and then just as a follow-up as well. I know you mentioned the rapidly growing demand in silicon carbide. But also, I know one of your competitors out there is also seeing about $1 billion in committed silicon carbide revenue in 2023. So just on the feasibility of the silicon carbide market even next year having multiple $1 billion vendors, just your thoughts on that would be helpful.

有幫助，然後也作為後續行動。我知道你提到了對碳化矽的快速增長的需求。而且，我知道您的一個競爭對手在 2023 年也看到了約 10 億美元的承諾碳化矽收入。因此，僅就碳化矽市場的可行性而言，即使在明年擁有多個 10 億美元的供應商，您對此的想法也會有幫助。

I think the demand is clearly outstripping supply. And I think to the extent that we can bring on collectively, the industry can bring on more supply, it's going to help things. The silicon semiconductor industry is clearly looking like it's going to see a cyclical downturn here silicon carbide has some secular trends that are just going to overpower that, I think, by far.

我認為需求明顯超過供應。而且我認為，就我們可以集體帶來的程度而言，該行業可以帶來更多的供應，這將有所幫助。矽半導體行業顯然看起來會出現週期性低迷，我認為碳化矽有一些長期趨勢，這些趨勢將壓倒它，我認為，到目前為止。

And that's the transition to EVs the transition to silicon carbide and clean energy, electric vehicles and so forth. So I think the demand for the industry is going to outstrip supply through the end of this decade. And that's inclusive of us putting into action the world's largest silicon carbide factory with only 200-millimeter silicon carbide factory and installing a significant expansion in Siler City with that capacity coming on in 2024. So even with all of those multibillion-dollar investments, I think the supply is going to be chasing demand through the end of the decade.

這就是向電動汽車的過渡，向碳化矽和清潔能源、電動汽車等的過渡。因此，我認為到本世紀末，該行業的需求將超過供應。這包括我們將世界上最大的碳化矽工廠投入運營，該工廠只有 200 毫米碳化矽工廠，並在 Siler City 進行大規模擴建，該產能將於 2024 年實現。因此，即使有所有這些數十億美元的投資，我認為供應將在本世紀末追逐需求。

Our next question is from the line of Gary Mobley of Wells Fargo.

我們的下一個問題來自富國銀行的 Gary Mobley。

On this issue relating to some challenges on the back end of handling some of these longer bulls, I'm curious to know if this may foreshadow maybe some transition issues as you move to 200-millimeter and related to this issue, is this for the supply of captive or merchant materials?

在這個與處理這些較長公牛後端的一些挑戰有關的問題上，我很想知道這是否預示著當你移動到 200 毫米時可能會出現一些過渡問題，並且與這個問題有關，這是為了供應自備材料還是商業材料？

No, I don't see it related to that at all. In fact, in some respects, any process improvements that we make on 150, we typically can ship that 200 and vice-versa. So I think it's a good thing. Having taller [crystals] means we're going to have a lower cost and it's just a matter of how you handle it in the back end.

不，我完全不認為它與此有關。事實上，在某些方面，我們對 150 進行的任何流程改進，我們通常都可以交付 200，反之亦然。所以我認為這是一件好事。擁有更高的 [水晶] 意味著我們將擁有更低的成本，而這只是你如何在後端處理它的問題。

And as Neill mentioned, we've gotten already a bunch of improvements in place not on the yield issue that we talked about, and we're heading back up north on there. So I think this is the proverbial good problem to have. We're super excited about the quality of these crystals and the rate which we can deliver on and so forth. It's just a matter of fine-tuning the back end of the process.

正如尼爾所提到的，我們已經在我們談到的產量問題上進行了一系列改進，我們正在向北返回。所以我認為這是眾所周知的好問題。我們對這些晶體的質量以及我們可以交付的速度等感到非常興奮。這只是微調流程後端的問題。

And relating to captive versus merchant, the impact?

與俘虜與商人有關，影響？

We have always said that there is going to be captive suppliers that are developing their own silicon carbide capability. And we assume they're going to be successful at doing that. So that is part of our plan.

我們一直說，將會有一些供應商正在開發自己的碳化矽能力。我們假設他們會成功地做到這一點。所以這是我們計劃的一部分。

And our next question is from the line of Edward Snyder of Charter Equity.

我們的下一個問題來自 Charter Equity 的 Edward Snyder。

Gregg, so you said you're looking for revenue from Mohawk Valley by the end of this year. First off, is that production? Or are you talking about revenue for sample parts? Because if we go back to a year ago, when we were in this 2Q last year, and we went through a very detailed discussion of what Mohawk, it sounds like you're behind by about 6 months. Our model suggests and the things we've talked about with you guys was that you'd start internal fab qual probably mid last year, then customer qualifications in March or June, and then we'd start seeing initial production now and then volume production in second half or the beginning of '23.

格雷格，所以你說你正在尋找今年年底前從莫霍克谷獲得的收入。首先，這是生產嗎？還是您在談論樣品零件的收入？因為如果我們回到一年前，當我們在去年的第二季度時，我們對莫霍克進行了非常詳細的討論，聽起來你落後了大約 6 個月。我們的模型表明，我們與你們討論過的事情是，你們可能會在去年年中開始內部晶圓廠質量，然後在 3 月或 6 月進行客戶資格認證，然後我們會不時開始看到初始生產，然後是批量生產在下半場或 23 年初。

And we've talked like last -- after last quarter to about -- it sounds like you guys were a little bit delayed then, but now it sounds like the lease may have been a little bit more acute.

我們已經談過了——在上個季度之後——聽起來你們當時有點延遲，但現在聽起來租約可能更尖銳一點。

So first of all, can you mark-to-market, put a flag in the ground now and tell us specifically what do you expect for Mohawk Valley in terms of not just revenue, but when do you start reach volume ramp to volume production. When do you expect to be done with customer qualifications.

因此，首先，您能否按市場計價，現在就在地上豎起一面旗幟，並具體告訴我們您對莫霍克山谷的期望，不僅是收入，還有什麼時候開始量產。您希望何時完成客戶資格認證。

I know you get some revenue for that, so maybe we can reset the expectations for the ramp of Mohawk Valley. And I understand it's complicated endeavor, so things shook out.

我知道你會因此獲得一些收入，所以也許我們可以重新設定對莫霍克山谷坡道的期望。我知道這是一項複雜的工作，所以事情發生了變化。

And then if I could, maybe, Neill, you're saying there's 300 bps hit the gross margin due to RF, which is curious to me. Is this -- and I apologize if I missed it, but were you raising gross margins overall because of the improvements in wafer diameter in RTP? Or has something occurred to reduce the margins that you're already producing in the case it seems like I'm really curious deviation from what we had. And then believe it or not, I have a follow-up.

然後，如果我可以，也許，尼爾，你說由於射頻，毛利率達到了 300 個基點，這讓我感到好奇。這是 - 如果我錯過了，我很抱歉，但是您是否因為 RTP 中晶圓直徑的改進而提高了整體毛利率？或者發生了一些事情來減少你已經產生的利潤，在這種情況下，我似乎真的很好奇與我們所擁有的偏差。然後信不信由你，我有一個跟進。

Yes. In terms of Mohawk Valley, we've got -- whole bunch of our lots have gone through, the wafer fab all of the (inaudible) steps all of (inaudible) lots that have gone through are performing very well. We're pretty excited about where we're at.

是的。就莫霍克谷而言，我們已經 - 我們的所有批次都經歷了，晶圓廠所有（聽不清）步驟，所有（聽不清）批次都表現得非常好。我們對我們所處的位置感到非常興奮。

And we now have material in the fab that we intend to run through our qualification. And so that material is in the fab, it will come out, we'll do qualification, et cetera. There's going to be a lot of kind of sort of simultaneous activity that happens with customers in terms of doing their quals. We've had a lot of outreach from a number of different customers in terms of, as I mentioned, kind of them wanting to be first in line because there's only so much we can get out of term in the near term.

而且我們現在在晶圓廠中擁有我們打算通過我們的資格認證的材料。這樣材料就在工廠裡，它會出來，我們會做鑑定，等等。就做他們的資格而言，將會有很多種類的同時發生在客戶身上的活動。正如我所提到的，我們已經從許多不同的客戶那裡得到了很多外展服務，他們中的一些人想要排在第一位，因為我們在短期內只能擺脫這麼多。

And so we're anticipating not only kind of preproduction sample kind of stuff, we're expecting to have initial production out of that fab by the end of this fiscal year, which is the June quarter. So we're expecting to get revenue out of that. In terms of the ramp, we would begin ramping in obviously beyond that, we'd see some increasing ramp -- maybe you can just have cover the ramp schedule.

因此，我們不僅期待預生產樣品，我們預計到本財年末，也就是六月季度，該工廠將進行初步生產。因此，我們期望從中獲得收入。就坡道而言，我們顯然會開始坡道，我們會看到一些增加的坡道——也許你可以只覆蓋坡道時間表。

Yes. So from a ramp perspective, right now, we're going to be -- obviously, we've got parts coming out of there right now that we're going to use for reliability and qualification testing. As we get to the back half of the year, we'll start seeing what the qualification schedule looks like, we'll hand those parts off pretty much in parallel with customers with such strong demand for those types of parts and then we'll start selling volume production in that time frame.

是的。因此，從斜坡的角度來看，現在，我們將 - 顯然，我們現在已經有零件從那裡出來，我們將用於可靠性和資格測試。隨著我們進入下半年，我們將開始了解資格認證時間表，我們將與對這些類型的零件有如此強烈需求的客戶同時交付這些零件，然後我們將在那個時間範圍內開始銷售批量生產。

So it's going to be a little bit variable because it just depends on the timing and how the qualifications go -- kind of in line with what we said previously. So I think that's just going to be a matter of timing with customers and ramp qualification, lots, and schedules, and we've got do their thing as well.

所以它會有點變化，因為它只取決於時間和資格如何進行 - 有點與我們之前所說的一致。所以我認為這只是與客戶和坡道資格、批次和時間表的時間問題，我們也必須做他們的事情。

But right now, the yields we're seeing the initial lots and the fab they look pretty in shape.

但現在，我們看到的初始批次和晶圓廠的產量看起來很漂亮。

And the RF margins?

和射頻邊際？

Yes. So on RF -- second question there. So on RF, if you go back in the last year and this year, we've been running that business and those products -- the RF product 100-millimeter substrates. So our plan was during fiscal year 2023 with to make the transition for a large part of the business to 150-millimeter substrates and that obviously was going to help us with margins, not just more important for them in '23.

是的。所以關於射頻——第二個問題。所以關於射頻，如果你回到去年和今年，我們一直在經營這項業務和那些產品——射頻產品 100 毫米基板。因此，我們的計劃是在 2023 財年將大部分業務過渡到 150 毫米基板，這顯然會幫助我們提高利潤率，而不僅僅是在 23 年對他們更重要。

So if you look at it today, the Durham fabs talk about how times of a higher output -- footprint and we're running 100-millimeter wafers on the higher cost footprint. So the products in afar some of the margin challenge right now, and this is going to be a solution to help us kind of drive up the margin curve on RF.

因此，如果您今天查看它，達勒姆晶圓廠會談論更高產量的倍數——佔用空間，我們正在以更高成本佔用空間運行 100 毫米晶圓。因此，目前的產品面臨一些利潤率挑戰，這將是一種解決方案，可以幫助我們提高 RF 的利潤率曲線。

But given the high level of demand that we're seeing, we're not going to be able to make that transition this year. It's not going to have a downtime in the past, given the amount of kind of heavy demand that we're seeing. So the way to think about it as we move into really well to hit our forecast for 23 as it relates to margin expansion. But as you look at the '24, we did anticipate seeing benefit from 150-millimeter wafers in RF, and we are [not] going to see that. So that's what's driving us, say, a 300 basis point or so impact as you get kind of into '24.

但鑑於我們看到的高需求水平，我們今年將無法實現這一轉變。考慮到我們看到的大量需求，過去不會有停機時間。因此，當我們進入非常好的階段以達到我們對 23 的預測時，考慮它的方式與利潤率擴張有關。但是，當您查看 24 年時，我們確實預計會從 RF 中的 150 毫米晶圓中受益，而我們 [不會] 看到這一點。所以這就是驅動我們的原因，比如說，當你進入 24 年時，會產生 300 個基點左右的影響。

And if you look at that cost today or the margin of those products today versus the rest of the business, it's obviously causing a drag as well. So that's really what the plan was to be kind of incrementally pushing this out, but really still have visibility right now to have the capacity to make the transition.

如果你看看今天的成本或今天這些產品與其他業務相比的利潤率，它顯然也會造成拖累。所以這就是計劃逐步推出的計劃，但現在確實仍然有可見性，有能力進行過渡。

Okay. And then my follow-up, if I could. Is the CapEx increase from $550 million to $1 billion. Is that entirely due to the new materials fab or as part of that, the acceleration of Mohawk. And then we're running into, obviously, a recession, you've seen the reports guys, things are turning down pretty quick. Are you seeing any change in your customer behavior with regards to orders or forecasts, especially in industrial.

好的。然後我的後續行動，如果可以的話。資本支出是否從 5.5 億美元增加到 10 億美元。這完全是由於新材料廠還是其中的一部分，莫霍克的加速。然後很明顯，我們正在陷入衰退，你們已經看到了報告，伙計們，事情正在迅速下降。您是否看到客戶在訂單或預測方面的行為發生任何變化，尤其是在工業領域。

Yes, I can definitely take the second one. The only change we're seeing is up into the right as tooling in and increasing and asking for more earlier in terms of demand.

是的，我絕對可以拿第二個。我們看到的唯一變化是隨著工具的加入和增加，以及在需求方面更早地要求更多。

Yes. And I think that the CapEx outlook has increased almost entirely related to the new materials facility that we announced. A lot of the expansion for Mohawk Valley, we took out the additional amount was already included when we took the CapEx to $550 million. As I said previously, the $550 million did not include either the materials facility or a new wafer band and the change here new materials facility.

是的。而且我認為資本支出前景的增長幾乎完全與我們宣布的新材料設施有關。莫霍克谷的很多擴張，當我們將資本支出提高到 5.5 億美元時，我們已經計入了額外的金額。正如我之前所說，5.5 億美元不包括材料設施或新的晶圓帶以及新材料設施的變更。

And our next question is from the line of Matt Ramsay of Cowen.

我們的下一個問題來自 Cowen 的 Matt Ramsay。

Gregg, I understand the benefits of going to taller bulls, both on 150 and 200 and what that can mean in the long term. I guess what I'm struggling with in the near term is the -- you would have thought that the rest of your supply chain would have been making the transition in anticipation of those taller bulls at the same time.

格雷格，我了解在 150 和 200 上做高牛的好處，以及從長遠來看這意味著什麼。我想我在短期內正在苦苦掙扎的是 - 你會認為你的供應鏈的其餘部分會同時在預期那些更高的公牛的情況下進行過渡。

And that you wouldn't have made the decision to transition to the taller bulls without the back end being ready for it to impact the revenue. So I'm just trying to understand everything seems like it should have transitioned to anticipate those taller bulls sort of in concert with each other. And now it seems like parts of the infrastructure aren't quite ready to handle it, and it's causing delays. So if you could just kind of walk through the different pieces of handling the taller bulls and which ones might have tripped up or not been ready for that transition as you anticipated?

如果後端沒有準備好影響收入，你就不會做出過渡到更高的公牛的決定。所以我只是想了解一切似乎應該已經過渡到預期那些更高的公牛會相互協調。現在看來，部分基礎設施還沒有完全準備好處理它，這導致了延誤。因此，如果您可以簡單地了解處理較高公牛的不同部分，哪些可能已經絆倒或沒有像您預期的那樣為過渡做好準備？

Thanks for the question, Matt. So we obviously aren't going to get into a lot of detail on our crystal growth and materials operation. A lot of that is intellectual property and trade secret et cetera. What I would say is that the taller bulls caused some challenges in the back-end processing of these presales.

謝謝你的問題，馬特。因此，我們顯然不會詳細介紹我們的晶體生長和材料操作。其中很多是知識產權和商業秘密等等。我想說的是，更高的多頭在這些預售的後端處理中造成了一些挑戰。

And the team jumped all over it, got to the bottom of what the challenges were and what we needed to fix and are already on the recovery plan to get back to where we need to be. So we're pretty satisfied with that kind of say it kind of -- we went through this dip and came out of it. Of course, it would have been great if we didn't have this dip. But silicon carbide, it's a tough beast, and ramping these things is not going to stay hard.

團隊全力以赴，深入了解挑戰是什麼，我們需要解決什麼問題，並且已經制定了恢復計劃，以回到我們需要的地方。所以我們對這種說法非常滿意——我們經歷了這次低谷並從中走出來。當然，如果我們沒有這次下降，那就太好了。但是碳化矽，它是一頭強硬的野獸，在這些東西上加坡不會一直很困難。

And I think the good news is that we've got a substantial amount of experienced people around when we have problems, we can call them all together and look at that problem and fix it relatively quickly. We're talking about a couple of quarter bump here, and we already see ourselves on the upward tick.

我認為好消息是，當我們遇到問題時，我們周圍有大量經驗豐富的人，我們可以將他們召集在一起，查看問題並相對快速地解決問題。我們在這裡談論的是幾個季度的上漲，我們已經看到自己處於上升趨勢。

So I think this is part of the way it is with silicon carbide, I'd say it's a tricky technology to manage and certainly to scale is also not easy to do. But I think having a substantial amount of experienced people in our company that have been through all the different trials and tribulations of silicon carbide help us handle this (inaudible).

所以我認為這是碳化矽方式的一部分，我會說這是一項很難管理的技術，當然要擴大規模也不容易。但我認為，我們公司有大量經驗豐富的人經歷過碳化矽的所有不同試驗和磨難，這有助於我們處理這個問題（聽不清）。

Thanks, Gregg, I appreciate the perspective there. I guess -- as my follow-up, Neill, I know there's a lot of folks, and maybe this is front running Monday a bit, but there's a lot of folks asking questions and you addressed here a couple of times about raising funds versus the increased CapEx and your focus on minimizing dilution, but it's hard to really know what you're going to get from different governments, both Europe, U.S., CHIPS Act, North Carolina, New York, et cetera.

謝謝，格雷格，我很欣賞那裡的觀點。我想 - 作為我的後續行動，尼爾，我知道有很多人，也許這在周一有點領先，但是有很多人提出問題，你在這裡討論了幾次關於籌集資金與增加的資本支出和您對最小化稀釋的關注，但很難真正知道您將從歐洲、美國、CHIPS 法案、北卡羅來納州、紐約等不同政府那裡得到什麼。

And it sounds like you're going to fund the remainder with equity potentially. What I'd be interested in is any line of sight visibility to customer co-funding or customer investments alongside of you guys? What the magnitude of that look like, how many engagements you might have. If we're trying to get to the remainder that might be funded with equity, that piece that might be done with customers that might also give insight to their commitments to your programs might be helpful if you have any color there.

聽起來你可能會用股權為剩餘部分提供資金。我感興趣的是與你們一起對客戶共同資助或客戶投資的任何視線可見性？這看起來有多大，你可能有多少次參與。如果我們試圖獲得可能由股權資助的剩餘部分，那麼可能與客戶一起完成的那部分也可能會幫助他們深入了解他們對您的計劃的承諾，如果您有任何顏色的話可能會有所幫助。

I think it's basically what I've talked about before. And the big kind of wild card here is that we don't know exactly what the government incentives are going to look like. But I can tell you, the majority of what we're looking at right now, I'd say the significant majority we're looking right now.

我想這基本上是我之前談到的。這裡最大的不確定因素是我們不確切知道政府的激勵措施會是什麼樣子。但我可以告訴你，我們現在看到的大部分內容，我想說的是我們現在正在尋找的絕大多數。

And all of what we're focused on, I would say, here in the shorter term is lower or non-dilutive in terms of what we're focusing on in terms of what we want to do and what we want to go target. And that's really where our efforts are focused right now.

我想說，我們所關注的所有內容，在短期內，就我們想要做的事情和我們想要達到的目標而言，我們關注的內容是較低的或非稀釋性的。這確實是我們現在努力的重點。

We've got the 4 buckets I talked about, the government incentives, the upfront payments from customers, project or private financing. And then finally, lastly, you go to the public markets. And I would think of it in that order in terms of how we're going to go think about going and approach this.

我們有我談到的 4 個桶，政府激勵措施，客戶的預付款，項目或私人融資。最後，最後，你去公共市場。我會按照我們將如何去考慮去解決這個問題的順序來考慮它。

So I think we've got a lot of levers. The initial discussions that we've had have been very, very positive. But there is some variability in there related to several of the items because not all the regulations of government incentives for things have been an issue. So it's hard to give you the exact amount of what we're going to do. But I can tell you is we are focused on the lower or non-dilutive elements of that plan right now and certainly as we think about around the funding in advance of some of these higher step-ups in CapEx to support this expansion for a pretty significant growth pickup that we've seen here, particularly in light of the design-in pipeline expansion that we've seen this quarter.

所以我認為我們有很多槓桿。我們最初的討論是非常非常積極的。但是其中一些與一些項目相關的變量存在一些差異，因為並非所有政府激勵措施的規定都是一個問題。所以很難告訴你我們將要做什麼的確切數量。但我可以告訴你的是，我們現在專注於該計劃的較低或非稀釋性元素，當然，當我們考慮在資本支出中的一些更高步驟之前圍繞資金進行考慮時，以支持這種擴張以獲得相當不錯的效果。我們在這裡看到的顯著增長回升，特別是考慮到我們本季度看到的設計管道擴張。

Our next question comes from the line of Ambrish Srivastava of BMO Markets.

我們的下一個問題來自 BMO Markets 的 Ambrish Srivastava。

Neill, I'm sure I'm not the only one based on questions that I'm getting from investors, I'm a little bit confused with the commentary that you provided on the last earnings call where you were very confident about the improvement in the execution on the back end and you specifically said that, hey, look, we expect this to continue. And we all appreciate the challenges in ramping the business drag and from where you were versus where you're going.

尼爾，我確信我不是唯一一個基於我從投資者那裡得到的問題的人，我對你在上次財報電話會議上提供的評論有點困惑，你對改進非常有信心在後端的執行中，您特別說，嘿，看，我們希望這種情況繼續下去。我們都明白在增加業務拖累以及從你所在的地方與你要去的地方所面臨的挑戰。

But it seems like there's a lot of volatility and what happened within a quarter that you went from calling out improvement continuing to be a miss, that you've had on the execution front? That was my first question.

但似乎有很大的波動性，並且在您從呼籲改進繼續成為失誤的四分之一內發生了什麼，您在執行方面遇到了什麼？那是我的第一個問題。

Yes. So I think from an execution standpoint, Ambrish, I appreciate your color on that. But obviously, we've got a big ramp in terms of what we're talking about. We just took our long-term revenue of 30% to 40%. So and the footprint that we're working on today is not the future footprint that we've been working off in the future.

是的。所以我認為從執行的角度來看，Ambrish，我很欣賞你的態度。但顯然，就我們正在談論的內容而言，我們已經有了很大的進步。我們只是將長期收入從 30% 提高到 40%。因此，我們今天正在努力的足跡並不是我們未來一直在努力的未來足跡。

So we have a lot of confidence. We made a lot of progress on our back-end execution last quarter. We still see the benefits from that. And I think what we've been caught on are 2 kind of growing pain type issues. One is related to longer bulls, like we said, I think it's going to be a nice tailwind for us going forward in terms of a great technology for us.

所以我們有很大的信心。上個季度，我們在後端執行方面取得了很大進展。我們仍然可以從中看到好處。而且我認為我們遇到的是兩種成長性疼痛類型的問題。一個與長期多頭有關，就像我們說的那樣，我認為這對我們來說將是一個很好的順風，就我們而言，這是一項偉大的技術。

And then secondly, from a [VAT] perspective, we've got bit by supply chain issue, we did see come only because we haven't really had any issues with this over the last several years as we've ramped the business. So this is kind of a new item that's kind of popped up from a [bad device] perspective. But again, I see this as a 1- or 2-quarter type of issue. But obviously, it's a bit of a dip in a longer-term backdrop of pretty -- very significant demand and a lot of revenue growth.

其次，從 [增值稅] 的角度來看，我們確實遇到了供應鏈問題，我們確實看到了這一點，因為在過去幾年中，隨著我們業務的擴大，我們在這方面並沒有真正遇到任何問題。所以這是一種從[壞設備]角度彈出的新項目。但同樣，我認為這是一個 1 或 2 個季度類型的問題。但顯然，在相當大的需求和大量收入增長的長期背景下，這有點下降。

AI would just maybe just add something from a terminology standpoint in the semiconductor industry, up front end and back end. And back end typically refers to packaging, assembly tests, et cetera. What Neill referred to last quarter in the back-end improvement was that kind of stuff. Today, we're talking about taller bulls and a challenge on the back end of processing of that.

從半導體行業的術語角度來看，人工智能可能只是在前端和後端添加一些東西。後端通常是指包裝、組裝測試等。尼爾上個季度在後端改進中提到的就是那種東西。今天，我們談論的是更高的公牛和處理後端的挑戰。

So it's a completely different thing than the back-end processing of a semiconductor chip. So just make sure you understood it and we tie in the same terminology for 2 different things.

所以這與半導體芯片的後端處理完全不同。因此，只要確保您理解它，我們就會為 2 種不同的事物使用相同的術語。

Got it. Got it. Thanks for the clarification. Then Gregg, a question for you. You're -- obviously, you're seeing a demand ramp, and you're very confident about you raised your guide for -- or what you expect for fiscal '26. But if you think about free cash flow, and you said it will be pushed out. Well, how are you thinking about with all the puts and takes that you're so confident on the demand and on the ramp of Mohawk and the second fab. What should investors who care about free cash flow, when something like I definitely care about free cash flow, what should we be thinking about when do you start to generate free cash flow, Gregg.

知道了。知道了。感謝您的澄清。然後是格雷格，問你一個問題。你 - 顯然，你看到需求增加，並且你對你提高你的指南非常有信心 - 或者你對 26 財年的期望。但是，如果您考慮自由現金流，並且您說它將被推出。好吧，你如何看待所有的看跌期權，你對莫霍克和第二家晶圓廠的需求和坡道充滿信心。關心自由現金流的投資者應該怎麼做，當像我這樣的人絕對關心自由現金流時，我們應該考慮什麼時候開始產生自由現金流，格雷格。

Well, maybe let me just hit that one Ambrish a bit. And I think we are going to put a take the free cash flow numbers out, but that free cash flow is in advance of building, I think is a manufacturing footprint for a high-growth industry with throughout there, some of the most discerning customers in the world are going to build state-of-the-art capacity and capability that's going to underpin us for the long term.

好吧，也許讓我稍微打一下那個 Ambrish。而且我認為我們將把自由現金流量數據去掉，但自由現金流量是在建立之前，我認為這是一個高增長行業的製造足跡，那裡有一些最挑剔的客戶世界將建立最先進的能力和能力，這將為我們提供長期支持。

So I think about having to invest in the business in advance of that. So I talked about a 2:1 CapEx ratio as you think about the investment in kind of facilities we've talked about. But as you get out beyond as you get into that long-range plan period, you look out beyond the cash flow generation capability of the footprint we're bringing online to match the demand that we're seeing in the business is going to be terrific. And we'll give you kind of an update on kind of how that all works on Monday.

因此，我考慮在此之前必須對業務進行投資。所以我談到了 2:1 的資本支出比率，因為您考慮對我們討論過的設施的投資。但是，當您進入那個長期計劃期時，您會超越我們為滿足我們在業務中看到的需求而上線的足蹟的現金流生成能力了不起。我們將在周一為您提供有關這一切如何運作的最新信息。

And our final question today comes from David O'Connor of BNP Paribas.

我們今天的最後一個問題來自法國巴黎銀行的大衛奧康納。

Maybe in the same vein, Gregg, as the previous question, or questions. Does these kind of newer issues now that you're seeing on the -- in the Durham fab. Does that change your view of the Durham fab long term does this kind of any of the plans you may have for that fab longer term? Is there anything new there? That's my first question.

格雷格，也許與上一個問題或問題相同。現在你在達勒姆工廠看到這些新問題嗎？這是否會改變您對達勒姆工廠長期的看法，是否會影響您對該工廠的長期計劃？那裡有什麼新東西嗎？這是我的第一個問題。

And just a clarification, for Neill on the 3 points of gross margin headwind on RF side. As far as I understand, it doesn't change the FY '24 target on the margin side, correct. It's still in line with what you indicated previously.

並且只是澄清一下，對於尼爾來說，RF 方面的毛利率逆風有 3 點。據我了解，它不會改變邊際方面的 24 財年目標，正確。它仍然與您之前指出的一致。

Yes, I'll take the first part, and then Neill can handle the second part. The team, led by (inaudible) have done a really good job of stabilizing and then improving the Durham wafer fabs. What we have right now that we're dealing with is a spare part issue on older equipment inside of the fab itself.

是的，我會承擔第一部分，然後尼爾可以處理第二部分。由（聽不清）領導的團隊在穩定和改進達勒姆晶圓廠方面做得非常好。我們現在正在處理的是晶圓廠內部舊設備的備件問題。

And I think as we resolve that, the Durham Fab is never going to be more (inaudible). These are completely different generations of fab and one is highly automated brand new and the other one is not automated at all and 20 or 30 years old. So they're never going to be equivalent beasts so to see. But we're -- that fab has made good improvement, still have more improvement to make, and we're just dealing with a little bit of the supply chain issue that Neill alluded to.

我認為，當我們解決這個問題時，達勒姆工廠將永遠不會變得更多（聽不清）。這些是完全不同的幾代晶圓廠，一種是高度自動化的全新晶圓廠，另一種完全沒有自動化，已有 20 或 30 年的歷史。所以他們永遠不會是同等的野獸。但是我們——那個晶圓廠已經取得了很好的改進，還有更多的改進要做，我們只是在處理尼爾提到的供應鏈問題。

Yes. Then on the RF margin impact. And as you look out into '24, and I think like we said earlier, we're just seeing really a tremendous pull from the demand side to see that over the both the short term and the long term. And it's just not leaving us enough opportunity on downtime to go and bring that down and make that transition.

是的。那麼對RF餘量的影響。當您展望 24 年時，我認為就像我們之前所說的那樣，我們只是看到需求方面確實存在巨大的拉動，可以在短期和長期內看到這一點。它只是沒有給我們足夠的停機時間來降低停機時間並進行過渡。

So it will have an impact on the '24 margin trajectory. The 300 basis points, I think, is kind of the number that you want to think about there in terms of you think about '24. But again, it's really a choice of serving customers or taking down time to kind of make a transition like that and really make a choice to serve our customers. in that period. Now if you go out and look out beyond '24, I think that the blueprint we have for cost and capacity over that time frame, even with the very significant growth plans that we have look very, very solid.

因此，它將對 '24 保證金軌跡產生影響。我認為 300 個基點是你想在 24 年考慮的數字。但同樣，這實際上是服務客戶或花時間進行這樣的過渡並真正選擇為我們的客戶服務的選擇。在那個時期。現在，如果您走出 24 年以後，我認為我們在那個時間框架內的成本和容量藍圖，即使我們制定的非常重要的增長計劃看起來非常非常可靠。

Well, thank you very much, everybody, for participating in the call, and we look forward to seeing you next Monday at October 31 in New York. Thank you.

好的，非常感謝大家參加電話會議，我們期待下週一 10 月 31 日在紐約見到你。謝謝你。

Thank you to everyone who has joined the call today. This concludes.

感謝今天加入電話會議的所有人。到此結束。