(WOLF) 2024 Q1 法說會逐字稿

Hello, everyone, and welcome to the Wolfspeed First Quarter Fiscal 2024 Conference Call. My name is Nadia, and I'll be coordinating the call today. (Operator Instructions) I will now hand over to your host, Tyler Gronbach, Vice President, External Affairs to begin. Tyler, please go ahead.

大家好，歡迎參加 Wolfspeed 2024 財年第一季電話會議。我叫納迪亞，今天我將負責協調通話。 （操作員指示）我現在請主持人對外事務副總裁泰勒·格隆巴赫 (Tyler Gronbach) 開始發言。泰勒，請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to Wolfspeed's First Quarter Fiscal 2024 Conference Call. Today, Wolfspeed CEO, Gregg Lowe; and Wolfspeed CFO, Neill Reynolds, will report on the results for the first quarter of fiscal year 2024. Please note that we will be presenting non-GAAP financial results during today's call, which we believe provides useful innovation to our investors.

謝謝接線員，大家下午好。歡迎參加 Wolfspeed 2024 財年第一季電話會議。如今，Wolfspeed 執行長 Gregg Lowe； Wolfspeed 財務長 Neill Reynolds 將報告 2024 財年第一季的業績。請注意，我們將在今天的電話會議上公佈非 GAAP 財務業績，我們相信這為我們的投資者提供了有用的創新。

Non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered as supplement to and not as 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. Today's discussion includes forward-looking statements about our business outlook, and we may make other forward-looking statements during the call.

非 GAAP 結果不符合 GAAP，且可能無法與其他公司提供的非 GAAP 資訊進行比較。非公認會計原則資訊應被視為根據公認會計原則編制的財務報表的補充，而不是替代。我們的新聞稿中提供了與最直接可比較的公認會計準則衡量標準的對賬，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。今天的討論包括有關我們業務前景的前瞻性陳述，我們可能會在電話會議期間做出其他前瞻性陳述。

Such forward-looking statements are subject to numerous risks and uncertainties. Our press release today and the SEC filings noted in the release mention important factors that could cause actual results to differ materially.

此類前瞻性陳述面臨眾多風險和不確定性。我們今天的新聞稿和新聞稿中提到的 SEC 文件提到了可能導致實際結果出現重大差異的重要因素。

Lastly, I would also like to note that during the quarter, we announced our intent to sell our RF business to MACOMV. The results of our RF business will now be classified as discontinuing operations, and all discussions today will be on a continuing operations basis. (Operator Instructions)

最後，我還想指出的是，在本季度，我們宣布打算將射頻業務出售給 MACOMV。我們的射頻業務的結果現在將被歸類為非持續經營業務，今天的所有討論都將基於持續經營業務。 （操作員說明）

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. It is an exciting time at Wolfspeed. With the pending sale of the RF business, we are now the world's only pure-play, vertically integrated silicon carbide company. We are uniquely positioned to drive the industry transition from silicon to silicon carbide from both a materials and a device perspective. As we continue to scale our operations, we have overcome our fair share of challenges along the way, and I remain very confident around our long-term trajectory for 3 reasons.

謝謝泰勒，大家下午好。這是 Wolfspeed 激動人心的時刻。隨著射頻業務即將出售，我們現在是世界上唯一一家純粹的垂直一體化碳化矽公司。我們具有獨特的優勢，可以從材料和裝置的角度推動產業從矽到碳化矽的轉型。隨著我們不斷擴大業務規模，我們克服了一路上遇到的挑戰，我對我們的長期發展軌跡仍然充滿信心，原因有三。

First, we've demonstrated the capability to consistently produce enough high-quality, high-yielding 200-millimeter wafers in Building 10 ahead of the needs of the Mohawk Valley fab; second, we've assembled a team comprised of internal silicon carbide experts, including one of our co-founders and external advisers from our tool manufacturers to ensure that we will achieve 20% utilization at Mohawk Valley in the June quarter of 2024, and we've seen notable progress this quarter. And finally, customers continue to partner with Wolfspeed. As we secured our third highest quarterly total of device design-ins at $2.2 billion and we converted more than $1 billion of device design wins this past quarter as well.

首先，我們已經展示了在 10 號大樓持續生產足夠高品質、高產量 200 毫米晶圓的能力，領先於莫霍克谷晶圓廠的需求；其次，我們組建了一支由內部碳化矽專家組成的團隊，其中包括我們的一位聯合創始人和工具製造商的外部顧問，以確保我們在2024 年第6 季度在莫霍克谷實現20% 的利用率，並且我們本季度取得了顯著進展。最後，客戶繼續與 Wolfspeed 合作。我們獲得了第三高的季度設備設計總投資額，達到 22 億美元，我們在上個季度也轉化了超過 10 億美元的設備設計成果。

In addition, we've also posted record revenue for our 150-millimeter substrates in the first quarter, which is an indication that demand remains robust for our high-quality substrates. Our first quarter results demonstrate the initial returns on our capacity expansion investments that will pave the way for the rest of the fiscal year and beyond. Revenue, non-GAAP gross margin and non-GAAP EPS all came in at the high end of our guidance range.

此外，我們還在第一季度公佈了 150 毫米基板的創紀錄收入，這表明對我們高品質基板的需求仍然強勁。我們第一季的業績證明了我們產能擴張投資的初步回報，這將為本財年剩餘時間及以後鋪平道路。收入、非公認會計原則毛利率和非公認會計原則每股收益均位於我們指導範圍的高端。

Turning to Mohawk Valley, where we continued to ramp production. This quarter, we generated $4 million in revenue from the fab, which compares to $1 million that was delivered in the previous quarter. In the coming quarter, we expect to more than double the output from the fab as we continue to ramp device production. Because of the complex nature of silicon carbide technology, as we ramp the fab further, we are collaborating even more closely with our tool vendors to ensure maximum uptime, the best yields and the most efficient use of all of our tools. We've worked closely with them to develop optimal operating protocols. And as a result, we're seeing good improvement in the fab. I was just up in the fab last week, meeting with the leadership team, walking the floor to talk with our technicians and seeing the progress firsthand that we're making in some of our bottleneck areas.

轉向莫霍克谷，我們在那裡繼續提高產量。本季度，我們從晶圓廠創造了 400 萬美元的收入，而上一季的收入為 100 萬美元。在下個季度，隨著我們繼續提高裝置產量，我們預計晶圓廠的產量將增加一倍以上。由於碳化矽技術的複雜性，隨著我們進一步擴大晶圓廠，我們將與我們的工具供應商更加密切地合作，以確保最大的正常運行時間、最佳的產量和最有效地使用我們所有的工具。我們與他們密切合作，制定最佳操作方案。因此，我們看到晶圓廠取得了良好的進步。上週我剛在晶圓廠與領導團隊會面，在車間與我們的技術人員交談，並親眼目睹了我們在一些瓶頸領域所取得的進展。

We've now doubled the number of products qualified in the last 90 days, and all of those MOSFETs achieved qualification on the first pass through of the fab, which is a strong indication of the underlying capability of the fab. Finally, those products we have already qualified have sufficient demand to more than satisfy our short-term 20% utilization target.

現在，在過去 90 天內，我們合格的產品數量增加了一倍，所有這些 MOSFET 在工廠的第一次通過時就獲得了合格證明，這有力地表明了工廠的基礎能力。最後，我們已經合格的那些產品有足夠的需求來滿足我們短期 20% 的利用率目標。

I am especially proud of this incredible effort by our team. It speaks to the advanced silicon carbide technical device capability we have assembled and the focused and detailed execution of our engineering and quality teams to ensure that we are more than ready to produce high-quality automotive devices at 200-millimeter, something nobody else in the world is currently doing.

我對我們團隊的這項令人難以置信的努力感到特別自豪。它體現了我們所組裝的先進碳化矽技術裝置能力以及我們的工程和品質團隊專注且細緻的執行力，以確保我們完全準備好生產200 毫米的高品質汽車裝置，這是業內其他公司無法比擬的。世界目前正在做的事情。

As I mentioned, we are ahead of plan in our ramp of Building 10 crystal growth for 200-millimeter substrates. By the end of this quarter, we will be producing enough material to support 15% utilization at Mohawk Valley, putting us nicely on track for our goal of 20% utilization by June of 2024.

正如我所提到的，我們在 200 毫米基板的 Building 10 晶體生長方面提前了計劃。到本季末，我們將生產足夠的材料來支持莫霍克谷 15% 的利用率，使我們能夠順利實現到 2024 年 6 月實現 20% 利用率的目標。

Turning to The JP. Construction continues and is on schedule. We expect to be producing material in the first half of fiscal 2025. And we've already hired and began training more than 100 people that will work at that facility.

轉向 JP。施工仍在繼續並按計劃進行。我們預計將在 2025 財年上半年生產材料。我們已經僱用並開始培訓將在該工廠工作的 100 多名人員。

On the demand side, as I said, we recorded $2.2 billion of design-ins, the third largest amount of any quarter in our history. It had a record design wins of $1.4 billion, illustrating our customers' willingness to move into volume production on projects that we've won over the past few years. Our design win record for the first quarter represents more than 230 projects, many of which are converting sooner than our original expectations. Most of these projects serve the automotive end market, and we are steadily ramping our design-ins to design wins with major OEMs and Tier 1s. We remain confident that the demand from automotive customers will remain strong while we are seeing some softness in the industrial space, primarily in China and Asia.

在需求方面，正如我所說，我們記錄了 22 億美元的設計投入，這是我們歷史上任何季度的第三大金額。它獲得了創紀錄的 14 億美元的設計勝利，這表明我們的客戶願意將我們在過去幾年中贏得的項目投入批量生產。我們第一季的設計獲勝記錄代表了 230 多個項目，其中許多項目的轉換速度比我們最初的預期要早。這些項目大多服務於汽車終端市場，我們正在穩步推進設計，以贏得主要原始設備製造商和一級供應商的設計勝利。我們仍然相信，汽車客戶的需求將保持強勁，而我們看到工業領域（主要是中國和亞洲）出現一些疲軟。

Additionally, we had a record quarter for 150-millimeter wafer revenue, a strong signal that the demand for materials remains solid. Wolfspeed is the first mover to 200-millimeter wafer volume production, which will be the silicon carbide industry's most advanced technology. As a result, we are well positioned to be the only company producing 200-millimeter at scale for the next few years and believe this competitive advantage will further extend our leadership position well into the future.

此外，我們的 150 毫米晶圓收入季度創紀錄，這是一個強烈的信號，表明對材料的需求仍然強勁。 Wolfspeed 是 200 毫米晶圓大量生產的先驅者，這將是碳化矽產業最先進的技術。因此，我們有能力成為未來幾年唯一一家大規模生產 200 毫米的公司，並相信這種競爭優勢將在未來進一步鞏固我們的領導地位。

Wolfspeed as the undisputed leader in silicon carbide will continue to play an industry critical role in the coming years as a supplier of merchant materials to leading power device makers. Demands for our materials remain strong, and we have extended some of our agreements with existing wafer customers and added new agreements like the one with Renesas. That being said, we're not content with being the leading material supplier to the market. We also expect to be one of the top silicon carbide device suppliers in the years to come.

Wolfspeed 作為碳化矽領域無可爭議的領導者，將在未來幾年作為領先功率元件製造商的商業材料供應商繼續發揮行業關鍵作用。對我們材料的需求仍然強勁，我們延長了與現有晶圓客戶的一些協議，並增加了新協議，例如與瑞薩電子的協議。話雖如此，我們並不滿足於成為市場領先的材料供應商。我們也期望在未來幾年成為頂級碳化矽元件供應商之一。

In 2018, the silicon carbide device market was estimated to be about $400 million. 5 years later, the market size is tied at $6 billion, and the projected TAM for the end of the decade is north of $20 billion and continues to grow.

2018年，碳化矽元件市場估計約4億美元。 5 年後，市場規模穩定在 60 億美元，預計本十年結束時的 TAM 將超過 200 億美元，並且持續成長。

This is part of the reason we announced and are now in the process of completing the sale of our RF business to MACOMV, which we expect to close by the end of the calendar year. We've always said that the growth of Wolfspeed will come from our leadership in silicon carbide and power devices. And this marks a definitive milestone in allocating all of our investments, research and development and technology into these business areas. There is a long road ahead of us here, which is why we invested the time and capital to develop the world's only purpose-built silicon carbide device fab. We're keenly focused on execution and firmly believe we're doing this right.

這是我們宣布並正在完成將射頻業務出售給 MACOMV 的部分原因，我們預計將在今年年底前完成。我們一直說Wolfspeed的成長將來自我們在碳化矽和功率元件領域的領先地位。這標誌著我們將所有投資、研發和技術分配到這些業務領域的一個明確的里程碑。我們前面還有很長的路要走，這就是為什麼我們投入時間和資金來開發世界上唯一的專用碳化矽元件工廠。我們非常注重執行，並堅信我們做得正確。

Doing this at scale at 200 millimeter from the outset will result in gaining and sustaining significant market share in the coming decades. It is rewarding to see the pieces of our long-term strategy become a reality, albeit on a longer time line than we originally anticipated.

從一開始就以 200 毫米的規模進行這項工作將在未來幾十年內獲得並維持重要的市場份額。看到我們的長期策略的各個部分成為現實是值得的，儘管時間比我們最初預期的要長。

The remainder of this fiscal year and particularly the second half will prove the conviction that we've always had in our strategy, in our products and in our team. It is extremely exciting to see what's on that horizon.

本財年剩餘時間，特別是下半年，將證明我們對策略、產品和團隊始終抱持的信念。看到地平線上發生的事情是非常令人興奮的。

I'll now turn it over to Neill, who will provide an overview of our financial results and outlook. Neill?

我現在將其交給尼爾，他將概述我們的財務表現和前景。尼爾？

Thanks, Gregg, and good afternoon, everyone.

謝謝格雷格，大家下午好。

During the first quarter, we achieved revenue, gross margin and EPS results all at the high end of our guidance range. In addition, we expect continued revenue growth and gross margin expansion as we transition into 2Q '24. The outperformance in our financial results was underpinned by $4 million of revenue from Mohawk Valley during the quarter, up from $1 million in the prior quarter, and we expect to grow that to between $10 million to $15 million of revenue as we transition into 2Q '24. While we expect some variability in the production ramp at Mohawk Valley, we remain on pace for a larger step-up in revenue as we transition into 3Q '24.

第一季度，我們的營收、毛利率和每股盈餘均達到了指導範圍的高端。此外，隨著我們進入 2024 年第二季度，我們預計收入將持續增長，毛利率將持續擴張。我們財務業績的出色表現得益於莫霍克谷本季收入 400 萬美元，高於上一季的 100 萬美元，我們預計隨著進入第二季度，收入將增加到 1000 萬至 1500 萬美元。24 .雖然我們預計莫霍克谷的產量成長會出現一些變化，但隨著我們進入 24 年第三季度，我們仍將繼續實現收入的大幅成長。

With that, let me review the financial results in more detail. I'll start by providing an overview of the first quarter. Revenue from continuing operations for the quarter was $197 million compared to our updated guidance range of $185 million to $205 million and growth of 4.2% year-over-year.

接下來，讓我更詳細地回顧一下財務表現。我首先概述第一季的情況。本季持續營運收入為 1.97 億美元，而我們更新的指導範圍為 1.85 億美元至 2.05 億美元，年增 4.2%。

Power device revenue was impacted by slower industrial and energy demand, primarily in China and the broader Asia market, partially offset by the revenue ramp in Mohawk Valley. Materials 150-millimeter substrate revenue achieved a record quarter, above our expectations, driven by continued strong demand and record manufacturing performance by our Durham materials operations team.

功率元件收入受到工業和能源需求放緩的影響，主要是在中國和更廣泛的亞洲市場，但部分被莫霍克谷的收入成長所抵消。在持續強勁的需求和我們達勒姆材料營運團隊創紀錄的製造業績的推動下，材料 150 毫米基板收入實現了創紀錄的季度業績，超出了我們的預期。

As Gregg mentioned earlier, our historical design-in portfolio supported the first quarter revenue growth, and we secured $2.2 billion of new design-ins for power devices. Our design-in to design win conversion rate is ahead of our original expectations. And based on the design-ins we've already secured, we have the next few years of expected revenue covered by our existing book of business.

正如 Gregg 之前提到的，我們歷史上的設計組合支援了第一季的營收成長，並且我們獲得了 22 億美元的功率元件新設計。我們的設計到設計獲勝的轉換率超出了我們最初的預期。根據我們已經獲得的設計，我們現有的業務範圍涵蓋了未來幾年的預期收入。

Non-GAAP gross margin from continuing operations in the first quarter was 15.6%. Underutilization costs for the quarter of $34.4 million, representing 17.4% or 1,740 basis points of gross margin. Outperformance was driven largely by improved materials manufacturing performance, resulting in better-than-expected 150-millimeter materials costs and yields. In addition, we saw lower-than-expected underutilization cost as we ramp Mohawk Valley.

第一季持續經營業務的非公認會計準則毛利率為 15.6%。本季的未充分利用成本為 3,440 萬美元，佔毛利率的 17.4% 或 1,740 個基點。表現優異主要是由於材料製造性能的提高，導致 150 毫米材料成本和產量比預期好。此外，隨著莫霍克谷的擴張，我們發現未充分利用的成本低於預期。

We generated adjusted loss per share of $0.53 from continuing operations in the fiscal first quarter compared to a loss of $0.36 last quarter and a loss of $0.24 in the same period last year. Adjusted loss per share was a significantly lower loss in the high end of our guidance range as higher revenue, higher gross margin and lower operating expenses all fell through to the bottom line.

第一財季持續經營業務產生的調整後每股虧損為 0.53 美元，而上季虧損 0.36 美元，去年同期虧損 0.24 美元。調整後每股虧損明顯低於我們指引範圍的高端，因為更高的收入、更高的毛利率和更低的營運費用都落入了底線。

Before moving to the outlook, I'll touch on our balance sheet. We ended the quarter with over $3.3 billion of cash and liquidity on hand to support our ramp and growth plans. DSO was 55 days while inventory days on hand was 162 days. Free cash flow during the quarter was negative $517 million comprised of $113 million of operating cash flow and $404 million of capital expenditures.

在展望前景之前，我先談談我們的資產負債表。本季結束時，我們手頭上有超過 33 億美元的現金和流動性來支持我們的產能擴張和成長計畫。 DSO 為 55 天，而現有庫存天數為 162 天。本季自由現金流為負 5.17 億美元，其中包括 1.13 億美元的營運現金流和 4.04 億美元的資本支出。

Regarding our financing initiatives, we are pursuing funding from the CHIPS Act and should have more clarity on this by early next calendar year. We are constantly evaluating ways to optimize our balance sheet and capital structure, and we'll continue to be opportunistic and flexible in our capital strategy.

關於我們的融資計劃，我們正在尋求《CHIPS 法案》的資助，並且應該會在明年初之前更加明確這一點。我們不斷評估優化資產負債表和資本結構的方法，我們將繼續在資本策略上保持機會主義和靈活性。

In the last year, we have raised approximately $5 billion of low dilution capital across a number of vectors, including customers, governments, private financing and capital markets. In conjunction with federal funding, we are in good position to execute our capacity expansion plans but we will remain nimble to optimize our capital structure for the long term.

去年，我們在客戶、政府、私人融資和資本市場等多個領域籌集了約 50 億美元的低稀釋資本。與聯邦資金結合，我們有能力執行我們的產能擴張計劃，但我們將保持靈活地長期優化我們的資本結構。

Turning to the second quarter outlook. We are targeting revenue from continuing operations in the range of $192 million to $222 million, driven largely by the incremental revenue contribution we expect from Mohawk Valley in this quarter. We now anticipate roughly $10 million to $15 million of revenue to come from Mohawk Valley in Q2. This increase in Mohawk Valley revenue will be partially offset by continued softer demand for industrial and energy products, primarily in the China and broader Asia markets.

轉向第二季展望。我們的目標是持續營運收入在 1.92 億至 2.22 億美元之間，這主要是由我們預計莫霍克谷本季的增量收入貢獻所推動的。我們現在預計第二季莫霍克谷的營收約為 1,000 萬至 1,500 萬美元。莫霍克谷收入的成長將部分被工業和能源產品需求持續疲軟所抵消，主要是在中國和更廣泛的亞洲市場。

However, we will look to repurpose the supply to where end demand remains strong. We are also expecting non-GAAP gross margin in the range of 12% to 20% with a midpoint of 16%. At the midpoint, this includes approximately $35 million or negative 1,700 basis points of underutilization costs as we ramp up revenue at the Mohawk Valley fab.

然而，我們將尋求將供應重新調整到最終需求仍然強勁的地方。我們也預期非 GAAP 毛利率在 12% 至 20% 之間，中位數為 16%。中間值包括約 3500 萬美元或負 1,700 個基點的未充分利用成本，因為我們增加了莫霍克谷晶圓廠的收入。

We are also targeting non-GAAP operating expenses of approximately $109 million for the second quarter of fiscal year 2024, which is inclusive of $11 million of start-up costs primarily related to the JP materials facility in Siler City, North Carolina. We expect Q2 net nonoperating expense of approximately $27 million.

我們也預計 2024 財年第二季的非 GAAP 營運費用約為 1.09 億美元，其中包括主要與北卡羅來納州席勒市 JP 材料工廠相關的 1,100 萬美元啟動成本。我們預計第二季的淨營業外支出約為 2,700 萬美元。

As I have mentioned previously, we expect nonoperating expense to increase as the year progresses as we earn less interest income on our short-term investments in connection with our continued investment in our facilities expansions. We expect Q2 non-GAAP net loss to be between $88 million and $71 million. Our Q2 targets are based on several factors that could affect them significantly, including supply chain dynamics, overall demand, product mix, factory productivity and the competitive environment. As Gregg mentioned earlier, we are moving ever closer to the significant uptick in our ramp of the Mohawk Valley fab, and we expect a larger ramp in the back half of the fiscal year.

正如我之前提到的，我們預計營業外支出將隨著時間的推移而增加，因為我們因持續投資設施擴建而獲得的短期投資利息收入減少。我們預計第二季非 GAAP 淨虧損將在 8,800 萬美元至 7,100 萬美元之間。我們的第二季目標是基於可能對其產生重大影響的幾個因素，包括供應鏈動態、整體需求、產品組合、工廠生產力和競爭環境。正如格雷格先前提到的，我們越來越接近莫霍克谷晶圓廠產量的大幅成長，我們預計本財年後半段產量將出現更大的成長。

We are still extremely confident in our ability to achieve 20% utilization in the fab by June. As we indicated on our last call, there will be a lag between 20% utilization and $100 million of quarterly revenue due to the time between fab starts and shipments to our customers.

我們仍對 6 月晶圓廠利用率達到 20% 的能力充滿信心。正如我們在上次電話會議中指出的那樣，由於晶圓廠啟動和向客戶發貨之間的時間間隔，20% 的利用率和 1 億美元的季度收入之間將會存在滯後。

Lastly, during the quarter, we announced the intent to sell our RF business to MACOMV, a path we have been pursuing for quite some time. When the sale is finalized, we will have completed the path towards portfolio optimization that we have been on since 2018 when we're predominantly a lighting company. We are happy to say that Wolfspeed is now the only pure-play silicon carbide business in the marketplace, and we can focus all our collective efforts on the silicon carbide materials and power device businesses.

最後，在本季度，我們宣布打算將射頻業務出售給 MACOMV，這是我們長期以來一直在追求的目標。當出售完成後，我們將完成自 2018 年以來我們一直在進行的產品組合優化之路，當時我們主要是一家照明公司。我們很高興地說，Wolfspeed 現在是市場上唯一一家純碳化矽業務，我們可以將所有集體努力集中在碳化矽材料和功率裝置業務上。

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

這樣，我會把它傳回給格雷格。

As we close out the first quarter, I want to reiterate that fiscal 2024 is a pivotal year for Wolfspeed. We remain confident in our long-term vision and are seeing promising results. While I gave some color earlier on design-ins, I think it's worth repeating that we had a record design wins for this past quarter as customers ramp their programs.

在第一季結束之際，我想重申 2024 財年對 Wolfspeed 來說是關鍵的一年。我們對我們的長期願景仍然充滿信心，並看到了有希望的結果。雖然我之前對設計進行了一些闡述，但我認為值得重複的是，隨著客戶不斷升級他們的項目，我們在上個季度取得了創紀錄的設計勝利。

Demand has certainly attracted new entrants and from our viewpoint and checks in the market, there is not a single player who can match our quality and our scale at 150 millimeter. And as I said earlier, no one is close to our position at 200 millimeter. This gap will only widen as we bring The JP online in the first half of fiscal 2025.

需求無疑吸引了新的進入者，從我們的觀點和市場調查來看，沒有一家公司能夠在 150 毫米的品質和規模上與我們相提並論。正如我之前所說，沒有人能接近我們 200 毫米的位置。隨著 The JP 在 2025 財年上半年上線，這一差距只會進一步擴大。

Secondly, while there have been several new entrants to the materials market, Chinese and others, the significant ramp required to create high-quality materials is still in front of them. It's taken us 35 years to master this technology, which we know firsthand can be incredibly difficult to work with, let alone scale and produce at the highest quality possible.

其次，雖然材料市場出現了一些新進入者，包括中國和其他國家，但製造高品質材料所需的大幅成長仍然擺在他們面前。我們花了 35 年的時間才掌握這項技術，我們知道使用這項技術非常困難，更不用說大規模生產並以盡可能高的品質進行生產。

While I've always said, we are taking our competitors at their word regarding their stated capability to produce silicon carbide materials internally. It is highly unlikely that every competitor will be successful. And this will create an opportunity for those with additional materials capacity to secure long-term agreements with device producers or capture an even larger share of the device market, and we are well positioned to do both. Demand remains strong across the business outside of the industrial and energy markets, particularly in China and Asia.

雖然我一直說，我們相信競爭對手所說的內部生產碳化矽材料的能力。每個競爭對手都獲得成功的可能性微乎其微。這將為那些擁有額外材料能力的企業創造機會，與設備生產商達成長期協議或佔領更大的設備市場份額，而我們有能力做到這兩點。工業和能源市場以外的業務需求依然強勁，尤其是在中國和亞洲。

Overall, what we have said time and time again about the transition to the use of silicon carbide rings through. The EV transition remains the largest change in the history of the automobile. And with that comes winners and losers and potentially a bumpy path. However, there's no reverting to the internal combustion engine. That is the way of the past. Silicon carbide has shown that EVs can be pushed further with extended range, faster charge times and competitive prices.

總的來說，我們已經一次又一次說過關於過渡到使用碳化矽環的經過。電動車轉型仍然是汽車史上最大的變革。隨之而來的是贏家和輸家，以及可能的坎坷道路。然而，並沒有恢復到內燃機。這就是過去的方式。碳化矽已經證明，電動車可以透過更長的續航里程、更快的充電時間和具有競爭力的價格進一步推動。

Despite the current softness in China and Asia, demand remains high for our products, and customers' needs are higher than our current output levels. And this is why we are keenly focused on ramping Mohawk Valley to 20% utilization.

儘管目前中國和亞洲經濟疲軟，但對我們產品的需求仍然很高，而且客戶的需求高於我們目前的產量水準。這就是為什麼我們熱衷於將莫霍克谷的利用率提高到 20%。

To close, we are excited about this year. Fiscal 2023 was not without its challenges. But those challenges come with being the first pursue next-generation 200-millimeter technology in silicon carbide. However, the opportunity to be the leader of this transformative technology keeps us moving forward as quickly and as purposely as possible to execute and generate value for our stakeholders.

最後，我們對今年感到興奮。 2023 財年並非沒有挑戰。但這些挑戰來自於成為第一個追求下一代 200 毫米碳化矽技術的公司。然而，成為這項變革性技術領導者的機會使我們能夠盡可能快速、有目的地前進，為我們的利害關係人執行並創造價值。

Thank you, operator, and we're now ready for Q&A.

謝謝您，接線員，我們現在準備好進行問答了。

Our first question goes to Samik Chatterjee of JPMorgan.

我們的第一個問題是向摩根大通的 Samik Chatterjee 提出的。

This is actually Joe Cardoso on for Samik. So for my one question, it sounds like qualifications in the Building 10 ramp are tracking well. So as we think about what is keeping you on the sidelines relative to Mohawk reaching 20% utilization earlier than the June quarter itself, can you just walk us through what the key drivers are at this point in the ramp? Just curious to hear your thoughts on that front.

這其實是喬·卡多佐（Joe Cardoso）代表薩米克（Samik）。對於我的一個問題，聽起來 10 號樓坡道的資格認證進展順利。因此，當我們思考是什麼讓您對 Mohawk 的利用率在 6 月份季度之前達到 20% 持觀望態度時，您能否向我們介紹一下此時的關鍵驅動因素是什麼？只是想聽聽您在這方面的想法。

Yes. Thanks for the question. First off, you're right, Building 10 is in great shape right now. We'll be producing material in this quarter that will be able to support 15% utilization. And obviously, we have 2 quarters after that to get to 20% utilization in Mohawk Valley. So that's in really great shape.

是的。謝謝你的提問。首先，你是對的，10 號樓現在狀況良好。我們將在本季生產能夠支援 15% 利用率的材料。顯然，在那之後我們有 2 個季度的時間才能使莫霍克谷的利用率達到 20%。所以這真是太好了。

We qualified a bunch of different MOSFETs already in that fab. All of those MOSFETs have qualified at first half success, and we've actually qualified 2 modules as well that have come through on 200-millimeter, which I think is a really good sign for the quality of our back-end operation.

我們已經在工廠中對一堆不同的 MOSFET 進行了鑑定。所有這些 MOSFET 都在上半年取得了成功，而且我們實際上還對 200 毫米的 2 個模組進行了認證，我認為這對於我們後端操作的品質來說是一個非常好的跡象。

The fab itself is the world's first 200-millimeter fab. And as such, a lot of the machines that are in the fab are seeing volume ramp of 200-millimeter silicon carbide for the first time. And so we're working very closely with our tool vendor to ensure we have better uptime with their machine.

該晶圓廠本身是世界上第一座 200 毫米晶圓廠。因此，工廠中的許多機器首次看到 200 毫米碳化矽的產量增加。因此，我們正在與工具供應商密切合作，以確保他們的機器有更好的正常運作時間。

One particular machine is seeing downtime more than we would -- than it should. We have a team that is completely focused on resolving that. As I mentioned, I was in the fab last week. I met with the engineers from our team as well as the engineer from the vendors team. They are also supremely confident that this is a normal process of going through as you ramp, and we will resolve this and we are on track to 20% utilization in the June quarter.

特定機器的停機時間比我們想像的要多——超出了應有的程度。我們有一個團隊完全專注於解決這個問題。正如我所提到的，我上週在工廠。我會見了我們團隊的工程師以及供應商團隊的工程師。他們也非常有信心，認為這是隨著您的成長而經歷的正常過程，我們將解決這個問題，並且我們預計在 6 月季度達到 20% 的利用率。

Our next question goes to Harsh Kumar of Piper Sandler.

我們的下一個問題是派珀桑德勒 (Piper Sandler) 的哈什庫馬爾 (Harsh Kumar)。

Had a quick timing question. So Mohawk Valley did $4 million of revenues in the March quarter. That implies that given the timing -- the lead time difference conversion packaging, et cetera, that means that Mohawk Valley wafer runs in the March/April time frame were about that $4 million. So my question really is, could you give us a glimpse into what Mohawk Valley wafer runs are looking like on a dollar basis today? And that would be the color that I'm looking for.

有一個快速的計時問題。因此，莫霍克谷在三月季度的收入為 400 萬美元。這意味著，考慮到時間安排——轉換封裝的交付週期差異等，這意味著莫霍克谷晶圓在 3 月/4 月的時間範圍內運行大約為 400 萬美元。所以我的問題是，您能否讓我們了解一下莫霍克谷晶圓生產現在以美元計算的情況？這就是我正在尋找的顏色。

Harsh, thanks for the question. This is Neill. So first of all, let me just -- we start thinking about utilization of the fab and how that relates to wafer starts. Essentially what we're talking about here. So utilizations in the fab is really a function more of wafer starts. So we talked about getting to 15% out of Building 10, that's for reference you're running wafers out of North Carolina, silicon carbide 200-millimeter substrate out of North Carolina that could potentially support the fab at 15% utilization even by the end of this year.

嚴厲，謝謝你的提問。這是尼爾.首先，我們開始考慮晶圓廠的利用率以及它與晶圓啟動的關係。本質上就是我們在這裡討論的內容。因此，晶圓廠的利用率實際上更取決於晶圓廠的開工率。因此，我們討論了10 號樓的利用率達到15%，僅供參考，您正在北卡羅來納州運行晶圓，北卡羅來納州運行碳化矽200 毫米基板，即使到最後，也有可能支持晶圓廠15%的利用率今年的。

As you look out at the end of the year, we're still on target to get to 20% utilization. So what that means is we're seeing solid performance from a substrate perspective to meet that goal. After that, what that means is -- again, it starts utilization. So what that means is you have to put the wafers in the fab, you've got to run those through the fab. You got that cycle time. You got to send it to the back end. It'd be either sold as devices or as packaged parts that may have other packages. So there are various cycle times on that as well.

正如您在今年年底看到的那樣，我們的目標仍然是達到 20% 的利用率。因此，這意味著我們從基材的角度看到了實現這一目標的可靠性能。之後，這意味著——它再次開始使用。所以這意味著你必須將晶圓放入晶圓廠，你必須讓它們通過晶圓廠。你有那個週期時間。您必須將其發送到後端。它要么作為設備出售，要么作為可能具有其他包裝的包裝部件出售。因此也有不同的周期時間。

So once we get to the 20% utilization, there'll be a bit of a lag as you work through those cycle times and then you see the revenue that corresponds to that. So in this case, once we get to 20% in that June time frame, we anticipate that being translating from a revenue perspective to about 100 million in revenue. As we get to December quarter next year.

因此，一旦我們達到 20% 的利用率，當您完成這些週期時間時就會有一點滯後，然後您就會看到與之相對應的收入。因此，在這種情況下，一旦我們在 6 月的時間範圍內達到 20%，我們預計從收入角度來看，收入將轉化為約 1 億美元。當我們進入明年 12 月季度。

I would just maybe add one comment to it. As material goes through these tools and the factory, we're seeing great results as they go through the tool. What we're seeing, though, is that the downtime or the maintenance required is higher than it should be right now. And again, I was in the fab last week. I met with the engineers at both the tool side as well as our side. And there's a very good line of sight for what we need to do to get the tool up time where it needs to be. And as soon as that happens, our ability to transition from relatively low utilization to -- towards this 20%, it should be a very, very good snap as we fix that. As I mentioned was in the fab last week. I will be in fab 2 more times in November, including on Thanksgiving Day to continue the focus of Mohawk Valley Ramp to 20% utilization.

我可能只想添加一條評論。當材料經過這些工具和工廠時，我們看到了很好的結果。但我們看到的是，所需的停機時間或維護時間比現在應該要長。再說一次，我上週去了工廠。我會見了工具方面和我們方面的工程師。我們可以清楚地了解我們需要做什麼才能使工具在需要的地方正常運作。一旦發生這種情況，我們就有能力從相對較低的利用率過渡到 20%，這應該是我們解決這個問題的一個非常非常好的快速過程。正如我上週提到的。 11 月我將再去 fab 兩次，包括感恩節當天，繼續關注莫霍克谷坡道的利用率至 20%。

And our next question goes to George Gianarikas of Canaccord Genuity.

我們的下一個問題是 Canaccord Genuity 的 George Gianarikas。

I just wanted to get your thoughts on some of the turbulence to say the least in recent discussions around EV plans at some of the big 3 European OEMs. What are your thoughts there? And I know you talked about your backlog being so robust that it didn't kind of matter for the next couple of few quarters. But what are you seeing in your own business that may or may not reflect what we're hearing in the marketplace.

我只是想了解一下您對歐洲三大原始設備製造商近期圍繞電動車計劃的討論中出現的一些動蕩的看法。你有什麼想法？我知道您談到您的積壓訂單非常多，以至於在接下來的幾個季度中這並不重要。但是，您在自己的企業中看到的內容可能反映也可能不反映我們在市場上聽到的情況。

Well, obviously, we would like our Mohawk Valley fab to be [ramped] faster and so with our customers. And as such, I've been on pretty much weekly calls with CEOs and executives from major OEMs and Tier 1s. And basically, their consistent message back to me is we need more and need it soon. So the demand that we're seeing both near term and long term is very, very solid. I'll remind folks that many of the cars that are being sold today were -- electric cars that are being sold today were designed 5, 6, 7 years ago and are with silicon-based MOSFETs or IGBTs. And what silicon carbide does is 3 important things.

嗯，顯然，我們希望我們的莫霍克谷工廠能夠更快[提升]速度，我們的客戶也是如此。因此，我幾乎每週都會與主要原始設備製造商和一級供應商的執行長和高階主管通話。基本上，他們向我傳達的一致訊息是我們需要更多，而且很快就需要。因此，我們看到的短期和長期需求都非常非常強勁。我要提醒大家的是，今天銷售的許多汽車都是 5、6、7 年前設計的電動車，並且配備了矽基 MOSFET 或 IGBT。碳化矽的作用有三件重要的事情。

One is it extends the range of the car; two, it allows the car to be charged faster from -- and then three, at the vehicle level, using silicon carbide allows the vehicle to be less expensive because there are lots -- you use less battery, less cooling and different things.

一是延長了汽車的行駛里程；第二，它可以讓汽車充電更快——第三，在車輛層面，使用碳化矽可以讓車輛更便宜，因為有很多——你使用更少的電池、更少的冷卻和不同的東西。

In fact, there was a report a few years ago that said for every incremental dollar of silicon that you spend on silicon carbide over silicon, you get $3.5 to $7 back.

事實上，幾年前有一份報告稱，與矽相比，您在碳化矽上每增加一美元矽，您就能獲得 3.5 至 7 美元的回報。

So basically, silicon carbide is enabling longer range. It's enabling faster charging, and it's enabling lower systems cost. And that's kind of a trifecta for EVs. So any of the noise that you see today, it certainly has no impact on our demand, both near term and long term.

所以基本上，碳化矽可以實現更遠的射程。它可以實現更快的充電速度，並降低系統成本。這對於電動車來說是三重奏。因此，您今天看到的任何噪音肯定不會對我們的需求產生影響，無論是短期還是長期。

And by the way, that's OEMs and Tier 1s in the U.S., in China and in Europe.

順便說一句，這是美國、中國和歐洲的原始設備製造商和一級供應商。

And the next question goes to Brian Lee of Goldman Sachs.

下一個問題是向高盛的布萊恩李提出的。

I guess you mentioned, I think, Neill, during your prepared remarks that kind of implying a stronger step up in Mohawk in 3Q. Does that imply that the tool downtime issue that you guys have been referencing here is sort of done by that point? And then if I just look at the numbers 2Q midpoint for Mohawk is up like 3x sequentially in revenue terms. So is 3Q expected to be up at that level or above? Or are you talking more in absolute dollars when you're talking about this bigger step-up?

尼爾，我想你在準備好的演講中提到過，這暗示著莫霍克在第三季將有更強勁的進步。這是否意味著你們在這裡提到的工具停機問題到那時已經解決了？然後，如果我只看數字，莫霍克第二季中點的營收比上一季成長了 3 倍。那麼第三季預計會達到這個水準或更高嗎？或者，當您談論這一更大的進步時，您是否更多地以絕對美元為單位進行討論？

Well, thanks, Brian, for the question. So I think as Gregg mentioned, there's obviously a lot of attention now that we're seeing 200-millimeter substrates supporting the fab, the fab ramp in a very good way at this point. So a lot of the attention is on the fab itself. We're working very closely with the fab team, with external vendor teams and whatnot to try and solve what we think are very solvable challenges in the fab right now to try to get more throughput through the system, through the uptimes and cycle times and start getting material out of the fab.

嗯，謝謝布萊恩提出這個問題。因此，我認為正如 Gregg 所提到的那樣，現在顯然受到了很多關注，因為我們看到 200 毫米基板以非常好的方式支援晶圓廠、晶圓廠坡道。因此，許多注意力都集中在晶圓廠本身。我們正在與晶圓廠團隊、外部供應商團隊等密切合作，嘗試解決我們認為目前晶圓廠中非常容易解決的挑戰，以嘗試透過系統、正常運行時間和週期時間獲得更多吞吐量，開始從晶圓廠取出材料。

So our anticipation is that we would see uptick in revenues as you kind of get to the back half of the year. If you take a step back and look at the pieces, maybe just unpack those a bit. Normally, when we think about revenue guidance, we've got about $100 million a quarter out of Durham. $90 million, $95 million -- sorry, $100 million a quarter out of Durham for power devices. $90 million or $95 million of material capacity that we've got. So the step-up in the back half would be from revenue from Mohawk Valley.

因此，我們的預期是，隨著下半年的到來，我們的收入將會增加。如果你退後一步看看這些碎片，也許只是稍微打開一下它們。通常，當我們考慮收​​入指引時，我們每季都會從達勒姆獲得約 1 億美元的收入。 9000 萬美元，9500 萬美元——抱歉，達勒姆每個季度有 1 億美元用於電力設備。我們擁有 9000 萬美元或 9500 萬美元的物質能力。因此，下半年的成長將來自莫霍克谷的收入。

You have $10 million to $15 million this quarter. You could see us doubling that again next quarter as well to get into Q3. So it really will just depend on how things play out from an uptime perspective and throughput perspective in the past, but we feel like we've got good confidence right now based on the way the teams are working through the fab throughput ramp.

本季您有 1000 萬至 1500 萬美元。您可以看到我們在下個季度再次翻倍，進入第三季。因此，這實際上只取決於過去從正常運行時間和吞吐量角度來看事情的進展情況，但我們覺得，基於團隊在晶圓廠吞吐量提升方面的工作方式，我們現在有很好的信心。

Our next question goes to Joshua Buchalter of Cowen.

我們的下一個問題是向 Cowen 的 Joshua Buchalter 提出的。

Congrats on the progress. I wanted to ask about the timeline of The JP actually. So you mentioned it's on schedule ramping in the fiscal first half of 2025. What should we -- how should we expect the cadence of that ramp to look compared to Building 10? And the reason I ask is it sounds like there's roughly a 2-quarter lag between when you get utilizations in Building 10 than when you generate revenue. And is that sort of indicative of what we should expect at the JP when that starts up? And any initial indications of how much that could contribute in fiscal 2025.

祝賀取得的進展。其實我想問The JP的時間表。所以你提到它將在 2025 財年上半年按計劃進行爬坡。與 10 號樓相比，我們應該如何預期爬坡的節奏？我問這個問題的原因是，聽起來 10 號樓的利用率與產生收入之間有大約 2 個季度的滯後。這是否表明我們在 JP 啟動時應該期待什麼？以及 2025 財政年度可能貢獻多少的初步跡象。

Well, I would say let me maybe kick it off, and Neill, if you might add a little bit of color to it. The JP is a substantially larger facility than Building 10. And as such, as we turn it on, it will turn on pretty decent capability kind of right from the start. It's on schedule at this point. And obviously, we want to keep it on schedule. So that's all looking pretty good. But basically, I would anticipate that as we ramp up The JP is I think the amount of capability that will be coming online will actually be quite substantial. And Neill, if you want to talk about the timing.

好吧，我想說讓我開始吧，尼爾，如果你可以給它添加一點顏色的話。 JP 是一個比 10 號樓大得多的設施。因此，當我們打開它時，它從一開始就會開啟相當不錯的功能。目前正在按計劃進行。顯然，我們希望按計劃進行。所以這一切看起來都不錯。但基本上，我預計，隨著我們加大 JP 的力度，我認為上線的能力實際上將相當可觀。尼爾，如果你想談談時間安排的話。

Yes. So on the timing, we said kind of back half of calendar year next year '24 in terms of crystal growth out of The JP, which I think will be in good shape. For right now, the timeline on our expansions are all on track from a timeline and budget perspective. So we feel good about we're out there. However, I'd also add to that, we're looking for ways to expand our current capacity out beyond 20%, just to buffer that a bit over that time frame. We've invested in some satellite sites to help with back-end wafering operations that impacted operations to help with that.

是的。因此，關於時間安排，我們說明年 24 年後半年 JP 的晶體生長會進行，我認為這將處於良好狀態。目前，從時間表和預算的角度來看，我們的擴張時間表都在正軌上。所以我們對我們在那裡感覺很好。不過，我還要補充一點，我們正在尋找將當前容量擴大到 20% 以上的方法，只是為了在這段時間內稍微緩衝一下。我們投資了一些衛星站點，以幫助影響營運的後端晶圓加工業務，以幫助實現這一目標。

In addition, there's going to be opportunity, I think, in time. We've seen really good performance out of our operations and manufacturing team. So the yield opportunity, operations productivity improvements and throughput capability that could bring us down that 20% or so capability on Durham.

此外，我認為，隨著時間的推移，將會有機會。我們看到我們的營運和製造團隊表現非常出色。因此，產量機會、營運生產力的提高和吞吐量能力可能會使我們在達勒姆的產能下降 20% 左右。

So we're working through all of those things now, putting in extra capacity where we can, looking for yield optimization and other opportunities from a productivity perspective to bring more capacity online in that period. So we're trying to dig from a number of angles and we'll give you an update on that as we make more progress as we get into the next year.

因此，我們現在正在解決所有這些問題，盡可能增加額外產能，從生產力角度尋找產量優化和其他機會，以便在此期間上線更多產能。因此，我們正在嘗試從多個角度進行挖掘，隨著明年我們取得更多進展，我們將向您提供最新資訊。

So just to reiterate, JP is currently on schedule. We're working with our existing facilities in Durham to increase productivity to give us more than 20% utilization of the Mohawk Valley fab. And we're also utilizing satellite sites for back end operations to support The JP as well. So we're trying to create a little bit of belt and suspenders on The JP.

重申一下，JP 目前正在按計劃進行。我們正在與達勒姆的現有設施合作，提高生產力，使莫霍克谷晶圓廠的利用率超過 20%。我們也利用衛星站點進行後端操作來支援 JP。因此，我們嘗試在 The JP 上製作一些腰帶和吊帶。

And our next question go to Jed Dorsheimer of William Blair.

我們的下一個問題是向威廉·布萊爾的傑德·多斯海默提出的。

I guess 2 parts or really 2 questions, I'll break the rules again. I guess first is your -- it sounds like things are going better at Mohawk Valley, and your underutilization costs of $37 million are actually better than what you guided for or $34 million better than what you guided in terms of $37 million. So I was wondering if you can maybe just talk about the revenue implications in terms of is it a direct 1 for 1? Or is there a lagging effect in terms of as Mohawk scales? And then I have a follow-up too.

我猜是 2 個部分或實際上是 2 個問題，我會再次違反規則。我想首先是你的——聽起來莫霍克谷的情況進展得更好，你的未充分利用成本 3700 萬美元實際上比你的指導值要好，或者比你指導的 3700 萬美元好 3400 萬美元。所以我想知道您是否可以只談談收入影響，是否是直接的一對一？或者莫霍克尺度是否存在滯後效應？然後我也有後續行動。

Maybe I'm going to kick it off and then Neill can talk a little bit about that. It's -- without a doubt, we wanted to be ramping Mohawk Valley faster than we currently are, and our customers wanted that as well. So we're not satisfied with the situation. We're intensely trying to work it so forth. I think we've made a lot of really good progress on it. Obviously, Building 10 has been very, very successful. We are also extremely confident that we'll be able to get these tools to operate in the way that they are supposed to, and we'll be able to ramp that fab to 20% utilization in the June quarter.

也許我會先開始，然後尼爾可以談談這個問題。毫無疑問，我們希望莫霍克谷的發展速度比目前更快，我們的客戶也希望如此。所以我們對現狀並不滿意。我們正在積極努力解決這個問題。我認為我們已經在這方面取得了很多非常好的進展。顯然，10號樓非常非常成功。我們也非常有信心能夠讓這些工具按照預期的方式運行，並且我們將能夠在 6 月季度將該工廠的利用率提高到 20%。

Yes. And then just from a numbers perspective, Jed, yes, we did see some benefit on the margin just because of the lower utilization level. Although I did mention, we're going to be -- based on what we're seeing from the substrate performance on 200 millimeter, we're going to move a quickly as we can to create -- put more capacity online maybe even faster than we thought initially within the fab and then at the material satellite sites I mentioned earlier. So you could see that underutilization number tick up throughout the year until you start to see it come down back in fiscal 2025.

是的。然後，從數字的角度來看，傑德，是的，我們確實看到了一些邊際效益，只是因為利用率水平較低。儘管我確實提到過，但基於我們從 200 毫米基板性能中看到的情況，我們將盡快採取行動，以創造更多的在線產能，甚至更快比我們最初在晶圓廠以及我之前提到的材料衛星站點想像的要多。因此，您可以看到利用率不足的數字全年都在上升，直到 2025 財年開始下降。

And that's just really relating to adding more capacity given the outlook we're seeing from a substrate performance perspective, just to give us as many opportunities to supply our customers as we look out in time. As Gregg said, very heavy demand particularly in the automotive side right now. Had very intense discussions with customers. So we're looking for all the ways we can to satisfy their demand with putting in more capacity as we look out in time here.

考慮到我們從基材性能角度看到的前景，這實際上與增加更多產能有關，只是為了給我們盡可能多的機會為我們的客戶提供及時的服務。正如格雷格所說，目前需求非常旺盛，尤其是在汽車領域。與客戶進行了非常激烈的討論。因此，我們正在尋找一切可能的方法來滿足他們的需求，並在我們及時關注的同時投入更多的容量。

Great. And then just as my follow-up. If I look at the -- last quarter, you saw a bump up in inventory. And raw materials, I think the greatest increase quarter-over-quarter. This quarter, you saw a slight increase, I think, $13 million in inventory. I don't know the composition because the Q hasn't been filed. I'm assuming most of that is work in process. Could you just give us some color on that? And where I'm going with this is just trying to back into the buildup of inventory from a wafer perspective.

偉大的。然後就像我的後續行動一樣。如果我看一下上個季度，你會看到庫存增加。我認為原料方面較上季增幅最大。我認為本季庫存略有增加 1300 萬美元。我不知道作文，因為 Q 還沒有提交。我假設其中大部分是正在進行中的工作。您能給我們一些顏色嗎？我的目的只是試圖從晶圓的角度恢復庫存的累積。

Well, let me -- yes. Thanks, Jed. And let me give kind of a high level on that, then Neill can work through the details on this. We began working with our raw material suppliers in May of 2019, getting ready for what is this big transformative ramp in silicon carbide. We knew that we were going to need to have them investing in their capacity to support this ramp. And obviously, I think we've done a really good job of doing that. So some of this is all just about getting material in place and capacity in place so that we're not bottlenecked kind of upstream, if you will.

好吧，讓我——是的。謝謝，傑德。讓我對此進行高度概括，然後尼爾可以詳細說明這一點。我們於 2019 年 5 月開始與原料供應商合作，為碳化矽的這項重大變革做好準備。我們知道我們需要讓他們投資他們的能力來支持這一成長。顯然，我認為我們在這方面做得非常好。因此，其中一些只是為了讓材料和產能到位，這樣我們就不會在上游遇到瓶頸，如果你願意的話。

Yes. And then from a numbers standpoint, Jed, that's right. I don't think there's any big pick up in finished goods, primarily related to raw materials and WIP. So raw -- about ensuring we have enough raw material capacity to support the substrate ramp as Gregg indicated. In addition, we're supplying a lot of wafers out of the Durham Building 10 from the 200-millimeter substrate capacity and sending those up to Mohawk Valley. That's the other kind of tick up in inventory as well. From a finished goods perspective, we're not seeing much growth there. We're still continuing to ship to customers in the automotive side as quickly as we can.

是的。從數字的角度來看，傑德，這是對的。我認為製成品不會有任何大的回升，主要與原料和在製品有關。正如格雷格指出的那樣，原材料是為了確保我們有足夠的原材料產能來支持基材的成長。此外，我們還從 Durham Building 10 的 200 毫米基板產能中供應大量晶圓，並將其發送到莫霍克谷。這也是庫存的另一種增加。從製成品的角度來看，我們沒有看到太多成長。我們仍在繼續盡快向汽車領域的客戶發貨。

And our next question goes to Colin Rusch of Oppenheimer.

我們的下一個問題是向奧本海默的科林·魯施提出的。

Gregg, you mentioned the potential for folks to end up exiting the market. Can you talk a little bit about how discerning the customers are at this point around assessing that risk and how impactful that is in terms of your design wins and design-ins that you've announced.

格雷格，你提到人們最終有可能退出市場。您能否談談客戶目前在評估風險方面的洞察力，以及這對您的設計勝利和您已宣布的設計的影響有多大。

Colin, could I ask you to repeat that? It was really hard to hear you.

科林，我可以請你再說一次嗎？真的很難聽到你的聲音。

Okay. No problem. You talked about some folks exiting the market or failing in the market. And then I'm curious about your customers' ability to assess the risk of folks not being able to deliver on some of their commitments. And I'm wondering how impactful that is around your design-in and design win performance.

好的。沒問題。您談到了一些人退出市場或在市場上失敗。然後我很好奇您的客戶是否有能力評估人們無法兌現某些承諾的風險。我想知道這對您的設計導入和設計獲勝性能有何影響。

Yes. Well, I would say that we are clearly the leader in silicon carbide technology, supply substrates to nearly all of the device folks out there and obviously feed those to ourselves. So having that as a -- having that strength really underpins their belief in our ability to ramp this technology. Like I said, I'm on weekly calls with executives and CEOs from our Tier 1 partners, our OEM customers, et cetera, and their consistent message is they need more and they need it faster. And then they see that we're ramping Mohawk Valley. They'd like us to ramp Mohawk Valley faster.

是的。好吧，我想說，我們顯然是碳化矽技術的領導者，為幾乎所有設備人員提供基板，並且顯然將這些提供給我們自己。因此，擁有這種實力確實增強了他們對我們提升這項技術能力的信心。就像我說的，我每週都會與我們的一級合作夥伴、OEM 客戶等的高階主管和執行長通話，他們一致的訊息是他們需要更多，而且需要更快。然後他們看到我們正在加強莫霍克谷。他們希望我們加快莫霍克谷的坡度。

But the one thing they see is that we have something called Mohawk Valley. We have the world's largest 200-millimeter wafer fab. They've seen that we've been able to solve the crystal growth challenge for 200 millimeter and get Building 10 operating. That's probably -- it's not probably, that is the hardest thing to do in getting a silicon carbide MOSFET is getting the wafer and the substrate right. So I think it's a matter of time for us demonstrating the 20% utilization out of Mohawk Valley. I think we're pretty close on that. As Neill said, the Building 10 is feeding Mohawk Valley now obviously at a higher rate than we're utilizing out of Mohawk Valley. We've got plenty of inventory staged up there. So as we knock out these last couple of bottlenecks, I think we're going to see a pretty nice tick up in Mohawk Valley.

但他們看到的一件事是我們有一個叫做莫霍克谷的地方。我們擁有全球最大的200毫米晶圓廠。他們看到我們已經能夠解決 200 毫米的晶體生長挑戰，並使 10 號樓投入運作。這可能是——也不是可能，獲得碳化矽 MOSFET 最困難的事情就是正確選擇晶圓和基板。因此，我認為我們展示莫霍克谷 20% 的利用率只是時間問題。我認為我們已經非常接近了。正如尼爾所說，10 號大樓現在為莫霍克谷提供的水量顯然比我們在莫霍克谷外的利用率更高。我們在那裡備有大量庫存。因此，當我們消除最後幾個瓶頸時，我認為我們將在莫霍克谷看到相當不錯的成長。

And then finally, I think it's worth mentioning again, the fact that we've had first pass qualification on these MOSFETs coming out of a new wafer fab or new wafer diameter and so forth really points to the fundamental capability of this fab. It is not normal that you would have 100% first pass success rate on all the MOSFETs that you qualified including a couple of modules, and I think that really, again, underpins the fundamental capability.

最後，我認為值得再次提及的是，我們已經對來自新晶圓廠或新晶圓直徑等的 MOSFET 進行了首次通過認證，這一事實確實表明了該晶圓廠的基本能力。在您鑑定的所有 MOSFET（包括幾個模組）上獲得 100% 的首次通過成功率是不正常的，我認為這確實再次支撐了基本能力。

Our next question goes to Vivek Arya of Bank of America.

我們的下一個問題是向美國銀行的 Vivek Arya 提出的。

Gregg, I just wanted to get your perspective on the next 1 to 2 years. There is just a lot of concern about more capacity coming online. I understand maybe it's not exactly the same quality as yours and maybe might not even have the same cost structure. But the fact of the matter is, there is a significant amount of whether it's 150 or 200-millimeter capacity. So how do you look at that? Are you assuming that the market stays undersupplied for the next 1 or 2 years? Is it just rightly supplied? What are your assumptions about industry capacity for the next 1 to 2 years?

Gregg，我只是想了解您對未來 1 到 2 年的看法。人們對更多容量的上線感到非常擔憂。我知道它可能與您的品質不完全相同，甚至可能沒有相同的成本結構。但事實是，無論是 150 毫米還是 200 毫米，容量都很大。那你怎麼看呢？您是否假設市場在未來 1 或 2 年內仍將供不應求？供應是否正確？您對未來 1 到 2 年的產業產能有何假設？

I think from my viewpoint, there is going to be a supply-demand mismatch. There will be more demand than there will be supply certainly over the next couple of years and probably a lot longer than that. I would repeat something that I said in our prepared remarks. This quarter, this past quarter, we recorded a record materials revenue.

我認為從我的角度來看，將會出現供需不符的情況。未來幾年，甚至可能比這更長的時間裡，需求肯定會超過供應。我想重複一下我在準備好的發言中說過的話。本季度，也就是上個季度，我們錄得了創紀錄的材料收入。

So there's a lot of noise about different folks coming online, but the demand for our materials is very, very strong. And where -- and obviously, constant communication with our materials customers, many of them are looking for extensions and expansions and things like that. And then obviously, we just reported the largest capacity reservation deposit in the history of semiconductors with our deal with Renesas. The feedback we're getting from folks is that China is doing a lot of investing in silicon carbide. They're doing that in silicon as well. But the feedback we're also getting is that they're not automotive ready at 150, let alone 200. So I really don't anticipate a demand being below supply for any time in the future, really the next couple of years for sure and probably the next half of the decade.

因此，不同的人上網有很多噪音，但對我們材料的需求非常非常強烈。顯然，在與我們的材料客戶不斷溝通的情況下，他們中的許多人都在尋求擴展和擴展以及類似的事情。顯然，我們剛剛報告了與瑞薩電子達成的半導體史上最大的產能預留押金。我們從人們那裡得到的回饋是，中國正在對碳化矽進行大量投資。他們也在矽上做到了這一點。但我們也得到的反饋是，它們還沒有達到 150 輛汽車的水平，更不用說 200 輛了。所以我真的不認為未來任何時候需求都會低於供應，實際上在未來幾年是肯定的可能是下一個五年。

Our next question goes to Christopher Rolland of Susquehanna.

我們的下一個問題是向薩斯奎哈納的克里斯多福羅蘭提出的。

I guess today, a competitor talked about a fairly large downtick in SiC for them. I guess my question for you is -- and you may have just addressed it, Gregg, but is your backlog covering all through 2024 and into '25. Do you have any problems with customers that are looking for pushouts, et cetera? And would those pushouts if you experience them, would they be fungible or transferable to someone else?

我想今天，一位競爭對手談到了他們的 SiC 價格大幅下跌。我想我要問你的問題是——格雷格，你可能剛剛解決了這個問題，但你的積壓工作是否涵蓋了整個 2024 年和 25 年。對於尋求退出等的客戶，您是否有任何問題？如果你經歷過這些排斥，它們是否可以替代或轉移給其他人？

Yes. Let me start with an answer and then I'll kick it over to Neill for a little bit more detail. The only area of softness that we see is industrial and energy basic and primarily that's China and Asia. Everything else is pretty strong. In fact, we wanted to just kind of give some of the numbers.

是的。讓我從一個答案開始，然後我會將其交給尼爾以獲取更多細節。我們看到的唯一疲軟的領域是工業和能源基礎領域，主要是中國和亞洲。其他的都還蠻強的。事實上，我們只是想提供一些數字。

Yes. So if we look at the revenue outlook as you go into the second half of the year, in fact, from an auto perspective, as Gregg said, very, very heavy demand. I think that's across U.S., that's in Europe, that's in Asia. So we're seeing the heavy demand there.

是的。因此，如果我們看看下半年的收入前景，事實上，從汽車的角度來看，正如格雷格所說，需求非常非常大。我認為在美國、歐洲、亞洲都是如此。所以我們看到那裡的需求量很大。

And that's really a function of how fast we can ramp Mohawk Valley, ramp capacity. We are seeing some softness in industrial and energy areas, particularly in China and Asia. Right now China represents about 20% of our total revenue, again, primarily in industrial and energy space. But in conversations with customers, that's really just kind of I think inventory timing, we're still seeing growth there. I'm still very heavy demand from automotive customers from China as well. So we're really just working through the revenue -- sorry, the inventory timing if you look out into the industrial side.

這其實取決於我們能夠以多快的速度提升莫霍克谷的產能。我們看到工業和能源領域出現一些疲軟，特別是在中國和亞洲。目前，中國市場約占我們總收入的 20%，主要集中在工業和能源領域。但在與客戶的對話中，我認為這實際上只是庫存時機，我們仍然看到那裡的成長。來自中國的汽車客戶對我的需求仍然很大。所以我們其實只是在研究收入——抱歉，如果你從工業方面來看的話，就是庫存時間。

And the third piece to that is on material side, as Gregg mentioned, we're still seeing very strong demand for 150 millimeter wafers as well. So we're seeing, I think, demand heavy in automotive devices demand heavy in 150-millimeter substrates, a little bit of softness in industrial energy perspective. But we're just slipping to match up supply and demand there right now. So there are pockets where we can take that supply, match it up to where the demand still remains strong in industrial energy. And that's really what we're looking at right now in terms of the outlook.

第三部分是材料方面，正如 Gregg 所提到的，我們仍然看到對 150 毫米晶圓的需求非常強勁。因此，我認為，我們看到汽車設備的需求旺盛，對 150 毫米基板的需求旺盛，從工業能源的角度來看，需求有些疲軟。但我們現在只是在滿足供應和需求方面的下滑。因此，我們可以在某些地方利用這些供應，將其與工業能源需求仍然強勁的地方相匹配。這確實是我們現在所關注的前景。

The next question go to Natalia Winkler of Jefferies.

下一個問題將詢問 Jefferies 的 Natalia Winkler。

I wanted to ask about the new design wins this quarter that you guys have seen. Could you possibly kind of help us figure out where most of them are. Is there a way to think about maybe kind of an increase in industrial activity or automotive? And just broadly, any additional color would be really helpful.

我想問一下你們看到的本季新設計的勝利。你能幫我們找出大部分在哪裡嗎？有沒有辦法考慮工業活動或汽車業的成長？一般來說，任何額外的顏色都會非常有幫助。

Okay. So just from a clarification perspective, we call our design-ins, and that's when a customer awards us the business. And then we say design win. And that's when a customer transitions into production. Specifically, they have to give us purchase orders for 20% of the first year as anticipated volume that they declared during the design in date. So we had $1 billion worth of design wins, which means customers were transitioning from they awarded us the program to they're beginning to ramp into production. That's an incredible number, by the way, and it's happening faster than we anticipated.

好的。因此，從澄清的角度來看，我們將我們的設計稱為“設計嵌入”，這就是客戶授予我們業務的時間。然後我們說設計獲勝。這就是客戶過渡到生產的時候。具體來說，他們必須向我們提供第一年 20% 的採購訂單，作為他們在設計期間宣布的預期數量。因此，我們獲得了價值 10 億美元的設計勝利，這意味著客戶正在從授予我們專案過渡到開始投入生產。順便說一句，這是一個令人難以置信的數字，而且發生的速度比我們預期的要快。

I believe that was 230 different projects. Many of those were automotive projects and the others sprinkled around industrial opportunities. But I would say the majority of those were quite robust.

我相信有 230 個不同的項目。其中許多是汽車項目，其他項目則圍繞著工業機會。但我想說，其中大多數都相當穩健。

The next question goes to Matthew Prisco of Evercore.

下一個問題將詢問 Evercore 的 Matthew Prisco。

How should we be thinking about the gross margin path from here particularly given the commentary on underutilization potentially ticking higher. Is low to mid 20% still the right range exiting the year? And kind of what would be the primary risk drivers to that figure at this point, either upside or downside?

我們應該如何考慮從這裡開始的毛利率路徑，特別是考慮到對利用率不足的評論可能會走高。 20% 的中低水準仍然是今年退出的正確範圍嗎？目前該數字的主要風險驅動因素是什麼，是上行還是下行？

Thanks, Matt. Let me just -- maybe I should unpack the first more a little bit as we look here. So obviously, in 1Q, we had a good quarter from a gross margin perspective, at the high end of the guidance range. It's just really driven by strong performance from a materials operations team and just some very, very good cost yield outperformance both on 150-millimeter and 200-millimeter substrates. So that was solid. And if you go back to 4Q '24, we reported gross margin of approximately 29%. And when we divested RF, we picked up of 200 basis points of improvement, excluding the RF business. So the baseline back in 4Q was about 31%. And we just saw about 200 basis points of improvement in gross margin quarter-over-quarter when you exclude that underutilization. So I'd say overall, good quarter from a gross margin perspective. And with that, a little bit of the lower impact from underutilization, although as I said earlier, you might see that tick up a bit more towards the end of year as we bring on more capacity.

謝謝，馬特。讓我說一下——也許我應該在我們看這裡時進一步解開第一個部分。顯然，從毛利率的角度來看，第一季我們的季度表現不錯，處於指導範圍的高端。這實際上是由材料營運團隊的強勁表現以及在 150 毫米和 200 毫米基板上的非常非常好的成本收益性能所推動的。所以這很可靠。如果你回到 2024 年第四季度，我們報告的毛利率約為 29%。當我們剝離 RF 業務時，我們獲得了 200 個基點的改善（不包括 RF 業務）。因此，第四季的基線約為 31%。如果排除利用率不足的情況，我們發現毛利率比上季提高了約 200 個基點。所以我想說，總體而言，從毛利率的角度來看，這是一個不錯的季度。因此，利用不足帶來的影響會降低，儘管正如我之前所說，隨著我們增加產能，您可能會看到到年底這一影響會增加。

So with that, as we look out beyond that, we will see an uptick in gross margin as you kind of get into 2Q. We see continued solid performance, offset a little bit by some of the auto mix that we'll see come into the business to continue to support that demand. We talked about underutilization being $35 million at the midpoint, might tick up again as you get out to the end of the year. But as we get out towards the end of the year, 20% or so gross margin target for the end of the year still makes sense. I think even with that in there. It's really going to be a function of how much volume we can drive through Mohawk Valley. We said it many times all roads lead to be at the Mohawk Valley and I think from a margin perspective, that's the case as well. So I still think that's a good target to think about as you move into the back half of the year.

因此，當我們展望未來時，隨著進入第二季度，我們將看到毛利率上升。我們看到持續穩健的業績，但我們將看到一些汽車組合進入業務以繼續支持這一需求，從而抵消了一點點。我們談到，中期利用率不足為 3,500 萬美元，到年底時可能會再次上升。但隨著年底的臨近，年底 20% 左右的毛利率目標仍然有意義。我想即使裡面有那個。這實際上取決於我們可以通過莫霍克谷的車流量。我們說過很多次，條條大路都通莫霍克山谷，我認為從利潤角度來看，情況也是如此。因此，我仍然認為，當你進入今年下半年時，這是一個值得考慮的好目標。

The next question goes to Edward Snyder of Charter Equity Research.

下一個問題交給特許股票研究公司的愛德華·斯奈德。

Maybe first a housekeeping just to check, Neill. The quarter, if you back out -- obviously, you've gotten performing out the RF business and given your underutilization charges, I'm getting around 30% gross margin if you get all that out of it. And then it looks like the RF business last quarter, give you -- I'm sorry, last year because you pro forma that was running around 24% gross margin. Just want to check on that. And then I had a question about the materials.

尼爾，也許先做家事工作來檢查一下。這個季度，如果你退出——顯然，你已經完成了射頻業務，考慮到你的未充分利用費用，如果你把所有這些都拿出來，我將獲得大約 30% 的毛利率。然後看起來就像上個季度的 RF 業務，對不起，去年，因為你預計毛利率約為 24%。只是想檢查一下。然後我有一個關於材料的問題。

Yes. And so in 4Q '24, we recorded 29% gross margin. The RF business was about a 200 basis point drag. So you can think about the ex RF number remaining about 31%.

是的。因此，在 2024 年第四季度，我們的毛利率為 29%。 RF 業務受到約 200 個基點的拖累。所以你可以想一下，除 RF 之外的數字還剩下 31% 左右。

So it's about 200 basis points of pickup there. If you exclude the underutilization, we saw about 200 basis points pickup 4Q into 1Q. So you recorded 15.6% with that 17.4% of underutilization in the quarter. As you move into Q3, and we'll see a little bit of an uptick in the underutilization just related to some of that capacity that we're bringing on.

因此，那裡的提振幅度約為 200 個基點。如果排除利用率不足的情況，我們會看到第四季到第一季上漲了約 200 個基點。因此，本季利用率為 15.6%，利用率為 17.4%。當進入第三季時，我們將看到未充分利用的情況略有上升，這與我們引入的部分產能有關。

Great. And then in kind of the detailed survey we did of all the new competitors in China and talking to folks on the ground there. It seemed -- and the feedback we got from the conference in Italy. The feedback seems to be pretty consistent that on a die basis, Wolfspeed is still the preferred vendor even some of your competitors tell us that too. And module, you -- there's work that needs to be done because you're kind of early in modules to begin with. But the vast majority of everything you're going to be shipping provided by Wolf or by Mohawk Valley is going to be die anywhere, right? So as that ramps up, some of these deals, Gregg, just looking for your opinion, some of these deals were -- some of your vendors are cutting deals to get any kind of die they can get now because the demand is -- far exceeds supply could revert back to higher demand once they see that Mohawk is up and has the capacity to supply. Isn't that a fair assessment?

偉大的。然後我們對中國的所有新競爭對手進行了詳細的調查，並與當地的人們進行了​​交談。看起來——以及我們從義大利會議上得到的回饋。回饋似乎非常一致，即在晶片基礎上，Wolfspeed 仍然是首選供應商，即使您的一些競爭對手也告訴我們這一點。而模組，你——有一些工作需要完成，因為你一開始就處於模組的早期階段。但是，沃爾夫或莫霍克谷提供的絕大多數物品都會死在任何地方，對吧？因此，隨著這種情況的增加，其中一些交易，格雷格，只是在徵求您的意見，其中一些交易是- 您的一些供應商正在削減交易以獲得他們現在可以獲得的任何類型的模具，因為需求- 遠一旦他們看到莫霍克上漲並有能力供應，供應過剩可能會恢復到更高的需求。這不是一個公正的評價嗎？

I think the ramp of Mohawk Valley will largely be a die story for the near term. We've won some good module business as well. But many of our customers are basically building their own inverters and their own modules. So that certainly is going to be a ramp mostly on the die side of things, I would say, for the near term.

我認為莫霍克谷的坡道在短期內基本上將成為一個死故事。我們也贏得了一些不錯的模組業務。但我們的許多客戶基本上都是在建造自己的逆變器和模組。因此，我想說，在短期內，這肯定會是一個主要在死亡方面的斜坡。

Thank you. that's all the questions that we have time for today. I will now hand back the call -- hand the call back over to Gregg Lowe, CEO, for any closing comments.

謝謝。這就是我們今天有時間討論的所有問題。我現在將把電話交還給執行長 Gregg Lowe，以徵求結束意見。

Just two thoughts before we end the call. One, demand remains very strong for silicon carbide; and two, I am personally laser-focused on the Mohawk Valley ramp to 20% utilization in the June quarter. Thanks a lot for joining us today and look forward to updating you in our next quarter's results.

在結束通話之前，我只想說兩個想法。一、碳化矽需求依然強勁；第二，我個人非常關注莫霍克谷在六月季度將利用率提高到 20%。非常感謝您今天加入我們，並期待在下一季的業績中向您通報最新情況。

Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。感謝大家的加入。現在您可以斷開線路。