(WOLF) 2024 Q2 法說會逐字稿

Good afternoon, thank you for attending today's Wolfspeed Inc. Q2 Fiscal Year 2024 Earnings Call. (Operator Instructions)

下午好，感謝您參加今天的 Wolfspeed Inc. 2024 財年第二季財報電話會議。 （操作員說明）

I would now like to pass the conference over to Tyler Gronbach, VP of External Affairs. You may proceed.

現在我想將會議交給對外事務副總裁泰勒‧格隆巴赫 (Tyler Gronbach)。您可以繼續。

Thank you, operator. And good afternoon, everyone. Welcome to Wolfspeed's Second Quarter Fiscal 2024 Conference Call. Today, Wolfspeed's CEO, Gregg Lowe; and Wolfspeed's CFO, Neill Reynolds, will report on the results for the second quarter of fiscal year 2024.

謝謝你，接線生。大家下午好。歡迎參加 Wolfspeed 2024 財年第二季電話會議。今天，Wolfspeed 的執行長 Gregg Lowe； Wolfspeed 財務長 Neill Reynolds 將報告 2024 財年第二季的表現。

Please note that we will be presenting non-GAAP financial results during today's call, which we believe provides useful information to our investors. 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 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.

請注意，我們將在今天的電話會議上公佈非公認會計準則財務業績，我們相信這為我們的投資者提供了有用的信息。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。

Today's discussion includes forward-looking statements about our business outlook, and we may make other forward-looking statements during the call. 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.

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。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 this quarter, we completed the sale of our RF business to MACOM. The results of our RF business are classified as discontinued operations, and all discussions today will be on a continuing operations basis. During the Q&A session, we would ask that you limit yourself to one question 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.

最後，我還想指出的是，本季我們完成了將射頻業務出售給 MACOM。我們的射頻業務結果被歸類為已終止經營業務，今天的所有討論都將基於持續經營業務。在問答環節中，我們會要求您只提出一個問題，以便我們在今天的電話會議中能夠回答盡可能多的問題。如果您還有任何其他問題，請在通話後隨時與我們聯繫。

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. As the world's only pure-play vertically integrated silicon carbide company, Wolfspeed is leading the industry shift from silicon to silicon carbide across both materials and devices. Our focus remains on scaling operations effectively and executing on the long-term investment plan that we have in place. While there are still challenges ahead of us, we are proud of the strong progress we've made on our strategic initiatives over the past couple of quarters. Importantly, we're encouraged by the developments across key internal metrics.

謝謝泰勒，大家下午好。作為全球唯一純粹的垂直一體化碳化矽公司，Wolfspeed 正在引領材料和裝置產業從矽轉向碳化矽的轉變。我們的重點仍然是有效擴展業務並執行我們現有的長期投資計劃。儘管我們仍然面臨挑戰，但我們對過去幾季在策略舉措上取得的強勁進展感到自豪。重要的是，我們對關鍵內部指標的發展感到鼓舞。

The Mohawk Valley Fab delivered improved performance and is on track to achieve 20% utilization in the June quarter. From a 200-millimeter substrate perspective, there is now ample runway to not only meet but exceed our original utilization target from Building 10 on the Durham campus as we're consistently producing high-quality, high-yielding 200-millimeter wafers out of this facility. The additional flexibility will be important as we begin producing substrates in the latter half of this year at The JP. Overall, I'm confident about our execution of our near-term operational goals and optimistic around our long-term financial prospects.

莫霍克谷工廠的性能得到改善，並預計在六月季度實現 20% 的利用率。從 200 毫米基板的角度來看，現在有足夠的跑道不僅可以滿足甚至超過我們在達勒姆園區 10 號樓的最初利用率目標，因為我們始終如一地生產高品質、高產量的 200 毫米晶圓設施。當我們在今年下半年開始在 JP 生產基板時，額外的彈性將非常重要。整體而言，我對我們執行近期營運目標充滿信心，並對我們的長期財務前景持樂觀態度。

Showing our unwavering focus on execution, the second quarter continued the solid momentum from the first quarter. We've said time and time again that all roads lead to Mohawk Valley, and this past quarter was no exception. The fab contributed approximately $12 million to our quarterly revenue, roughly triple last quarter's levels and at the midpoint of our guidance. I spent a lot of time at Mohawk Valley this past quarter and witnessed the dedication of our team firsthand, who, along with our incredible tool suppliers are working around the clock on tool optimization activities related to this first of its kind grant.

第二季延續了第一季的強勁勢頭，體現了我們對執行堅定不移的關注。我們一再說過，條條大路通莫霍克谷，上個季度也不例外。該晶圓廠為我們的季度收入貢獻了約 1,200 萬美元，大約是上個季度水準的三倍，處於我們指導值的中點。上個季度，我在莫霍克谷度過了很多時間，親眼目睹了我們團隊的奉獻精神，他們與我們令人難以置信的工具供應商一起日以繼夜地致力於與這一筆此類資助相關的工具優化活動。

Wolfspeed at its core is an innovative company, full of problem solvers, and I'm very grateful to the entire team that we are head sound and focused on execution at this fab. To give you a sense for the progress at Mohawk Valley, so far, we've qualified over a dozen customer parts, including 2 of our most complicated automotive devices, as well as the largest device we are currently producing at the facility. This gives us more than enough qualified parts to achieve our 20% utilization goal, and we expect to continue to qualify more parts between now and the end of June, further supporting the Mohawk Valley revenue ramp.

Wolfspeed 的核心是一家創新公司，充滿了問題解決者，我非常感謝整個團隊，我們在這家工廠頭腦清醒，專注於執行。為了讓您了解莫霍克谷的進展，到目前為止，我們已經對十多個客戶零件進行了鑑定，其中包括我們最複雜的兩個汽車設備，以及我們目前在該工廠生產的最大設備。這為我們提供了足夠的合格零件來實現 20% 的利用率目標，我們預計從現在到 6 月底將繼續提供更多合格零件，進一步支持莫霍克谷的收入成長。

Additionally, we received our IATF Automotive Certification at Mohawk Valley, which is an industry standard to ship to OEMs and Tier 1s. This is an important milestone, and we are pleased to have achieved it on our first attempt. On the material side of our operations, at Building 10, we've now installed all crystal growers necessary to achieve 20% utilization at the Mohawk Valley Fab by June of 2024.

此外，我們還在莫霍克谷獲得了 IATF 汽車認證，這是向 OEM 和一級供應商發貨的行業標準。這是一個重要的里程碑，我們很高興在第一次嘗試中就實現了這一目標。在我們營運的材料方面，我們現在已在 10 號大樓安裝了所有必要的晶體生長器，以確保到 2024 年 6 月莫霍克谷工廠的利用率達到 20%。

Wafers out of Building 10 are yielding very well, and we now have plenty of 200-millimeter capacity to achieve our 20% utilization target. In fact, the quality of the material and the current yield give us confidence that Building 10 will be able to support approximately 25% wafer start utilization at Mohawk Valley by the end of calendar 2024, well above our original expectations. However, we still like to remind everyone that the ramp cadence at Mohawk Valley has not changed based on this development. And to be clear, the normal challenges of ramping a brand-new 200-millimeter fab remain, and we are well aware that this ramp will not be linear.

10 號樓的晶圓產量非常好，我們現在擁有充足的 200 毫米產能來實現 20% 的利用率目標。事實上，材料的品質和目前的產量讓我們相信，到 2024 年底，10 號大樓將能夠支援莫霍克谷約 25% 的晶圓開工利用率，遠高於我們最初的預期。不過，我們還是想提醒大家，莫霍克谷的坡道節奏並沒有因此而改變。需要明確的是，提升全新 200 毫米晶圓廠的正常挑戰仍然存在，而且我們很清楚，這種提升不會是線性的。

While we're pleased with the fab performance, our Mohawk Valley team continues to work on optimizing factory tool utilization and availability. It's important to remember that this is the first time these tools have processed 200-millimeter silicon carbide wafers and tool integration is a critical step as we ramp production.

雖然我們對晶圓廠的性能感到滿意，但我們的莫霍克谷團隊仍在繼續努力優化工廠工具的利用率和可用性。重要的是要記住，這是這些工具首次加工 200 毫米碳化矽晶圓，工具整合是我們提高產量的關鍵步驟。

Lastly, as it relates to our materials facility, at The JP in Siler City, we will begin installing crystal growers in early February and would expect to begin qualifying furnaces in the September quarter of this year. All the learnings with 200-millimeter crystal growth at Building 10 will better position us to hit the ground running in Siler City, and we anticipate boule production starting by the end of calendar 2024.

最後，由於與我們位於錫勒市 The JP 的材料設施相關，我們將於 2 月初開始安裝晶體生長器，並預計在今年 9 月的季度開始對熔爐進行資格認證。 10 號樓 200 毫米晶體生長的所有經驗將使我們能夠更好地在 Siler 城開展工作，我們預計將於 2024 年年底開始晶錠生產。

And finally, before I hand the call over to Neill, I'd like to share a few observations about the internal combustion engine to electric vehicle transition. The shift, of course, is well underway, but it's happening at a more modest pace than some had previously anticipated. This really has no impact on our business outlook as we were still very early in the adoption phase of our silicon carbide devices across numerous car models that are being introduced to the market in the next few years. Underscoring this is our strong design-ins and design-win performance this quarter.

最後，在將電話轉交給尼爾之前，我想分享一些有關內燃機汽車向電動車過渡的觀察結果。當然，這種轉變正在順利進行，但其發生的速度比一些人之前預期的要溫和。這確實對我們的業務前景沒有影響，因為我們仍處於在未來幾年推向市場的眾多車型中採用碳化矽設備的早期階段。本季我們強勁的設計導入和設計獲勝表現凸顯了這一點。

As a reminder, a design-in represents business we've been awarded. And the conversion to design win happens when the customer places production orders for 20% of the first year production volume. In other words, the design-win indicates that the customer is beginning to ramp their production with our devices. We achieved $2.1 billion in design-ins this quarter, marking our third highest quarter on record, which clearly indicates continuing and growing robust demand for silicon carbide.

提醒一下，設計導入代表了我們獲得的業務。當客戶下達第一年產量 20% 的生產訂單時，就會轉化為設計獲勝。換句話說，設計獲勝表明客戶開始使用我們的設備提高產量。本季我們的設計投入額達到 21 億美元，這是有史以​​來第三高的季度，這清楚地表明對碳化矽的需求持續增長且強勁。

More importantly, we posted a record of $2.9 billion of design-wins, which were heavily weighted towards EVs and included 28 different electric vehicle models. This diverse customer base across the global electric vehicle industry, with multiple OEMs and Tier 1s, gives us confidence to continue with our expansion plan and further illustrates why we believe our supply will be continuing to work to catch up with demand over the next few years. And these design-wins are just the beginning.

更重要的是，我們創下了價值 29 億美元的設計勝利記錄，其中主要針對電動車，包括 28 種不同的電動車型號。全球電動車產業的多元化客戶群，包括多家OEM 和一級供應商，使我們有信心繼續實施我們的擴張計劃，並進一步說明了為什麼我們相信我們的供應將在未來幾年繼續努力趕上需求。這些設計勝利只是一個開始。

Over the next 5 years, based on our current design-ins, the number of EVs leveraging Wolfspeed devices will increase to nearly 120 different models across 30 different OEMs. This represents a significant growth from the small number of vehicles on the road using our silicon carbide devices today, and demonstrates the opportunity ahead for us. As we continue to pioneer 200-millimeter silicon carbide and embark on our unprecedented greenfield capacity expansion plans, we maintain conviction in our strategy. It is exciting to see what is on the horizon, and we look forward to continuing this promising momentum, particularly at Mohawk Valley, throughout the second half of this fiscal year and beyond.

未來 5 年，根據我們目前的設計，採用 Wolfspeed 設備的電動車數量將增加到 30 個不同 OEM 的近 120 種不同型號。這代表著目前道路上使用我們的碳化矽設備的車輛數量很少，有了顯著的增長，並展示了我們面臨的機會。隨著我們繼續開拓 200 毫米碳化矽並開始實施前所未有的綠地產能擴張計劃，我們對我們的策略保持堅定的信念。看到即將發生的事情令人興奮，我們期待在本財年下半年及以後繼續保持這種充滿希望的勢頭，特別是在莫霍克谷。

I'll now turn it over to Neill, who will provide an overview of our financial results and our 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. Before I jump into the financial results for the quarter, I'd like to remind you all that during the second quarter, we completed the sale of our RF business to MACOM. As such, all results reported below will be on a continuing operations basis and exclude the impact of RF in our results. We are very pleased that during the second quarter, revenue, gross margin and EPS all came in at the high end of our stated guidance ranges for the second straight quarter. We generated revenue of $208 million for the quarter, a 5.6% increase sequentially and a nearly 20% increase year-over-year.

謝謝，格雷格。在介紹本季的財務表現之前，我想提醒大家，在第二季度，我們完成了向 MACOM 出售 RF 業務的工作。因此，以下報告的所有結果都將基於持續營運的基礎上，並排除射頻對我們結果的影響。我們非常高興的是，第二季的營收、毛利率和每股盈餘均連續第二季達到我們規定的指導範圍的高端。本季我們的營收為 2.08 億美元，季增 5.6%，年增近 20%。

During the quarter, we generated record power revenue of $108 million, driven largely by the $12 million of contribution from Mohawk Valley and strong demand we see for our products. Looking at the power device revenue performance in more depth, we saw a sharp increase in EV revenue quarter-over-quarter, fueled by the additional EV device products shipping out of Mohawk Valley. However, this was partially offset by lower demand and persistent weakness in our industrial and energy markets, particularly in China and across Asia.

本季度，我們創造了創紀錄的 1.08 億美元電力收入，這主要得益於莫霍克谷 1200 萬美元的貢獻以及我們看到的對我們產品的強勁需求。更深入觀察功率設備收入表現，我們發現，在莫霍克谷出貨的額外電動車設備產品的推動下，電動車收入較上季大幅成長。然而，需求下降以及工業和能源市場持續疲軟（尤其是中國和整個亞洲）部分抵消了這種影響。

We had yet another solid revenue performance for materials, above our guidance expectations. Materials benefited from an additional week of product shipments compared to the prior quarter and prior year but also from continued strong manufacturing execution, resulting in approximately 29% growth versus prior year.

我們的材料收入表現再次穩健，超出了我們的指導預期。材料受益於與上一季和去年同期相比增加了一周的產品發貨量，而且還受益於持續強勁的製造執行力，導致與去年同期相比增長了約 29%。

Non-GAAP gross margin in the second quarter was 16.4%, representing an 80 basis point improvement from the prior quarter, driven by increased revenues for Mohawk Valley and solid execution in our materials business. Our gross margin includes $35.6 million or approximately 1,700 basis points of underutilization costs related to the ramp of Mohawk Valley in the second quarter. As a result of the gross margin improvement as well as tighter cost controls and higher interest income, our non-GAAP EPS of negative $0.55 surpassed our guidance. Our EPS, in addition to the underutilization costs mentioned above also included the impact of $10.5 million of factory start-up costs related to the construction of The JP and our materials expansion efforts.

第二季非 GAAP 毛利率為 16.4%，較上一季提高 80 個基點，這得益於莫霍克谷收入的增加和我們材料業務的穩健執行。我們的毛利率包括 3,560 萬美元或約 1,700 個基點的與莫霍克谷第二季坡道相關的未充分利用成本。由於毛利率的改善以及更嚴格的成本控制和更高的利息收入，我們的非 GAAP 每股收益為負 0.55 美元，超出了我們的指導。除了上述未充分利用成本之外，我們的每股盈餘還包括與 JP 建設和材料擴張工作相關的 1,050 萬美元工廠啟動成本的影響。

Before I get into guidance, a quick update on our balance sheet. We ended the quarter with over $2.6 billion of cash and liquidity on hand to support our ramp and growth plans. We expect to draw down the remaining $1 billion related to our Renesas supply agreement in the first half of this year, which will build our cash position. DSO was 43 days, while inventory days on hand was 199 days. Free cash flow during the quarter was negative $755 million, comprised of $183 million of negative operating cash flow and $572 million of capital expenditures. As it relates to funding plans, given our strong cash and liquidity position, our current focus is on government funding to further support our capacity expansion plans.

在介紹指導之前，先快速更新一下我們的資產負債表。本季結束時，我們手頭上有超過 26 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。我們預計在今年上半年提取與瑞薩供應協議相關的剩餘 10 億美元，這將增強我們的現金狀況。 DSO 為 43 天，庫存天數為 199 天。本季自由現金流為負 7.55 億美元，其中包括 1.83 億美元的負營運現金流和 5.72 億美元的資本支出。由於它與融資計劃有關，鑑於我們強大的現金和流動性狀況，我們目前的重點是政府資金，以進一步支持我們的產能擴張計劃。

We continue to have constructive discussions and correspondents with government authorities including U.S. CHIPS Act officials. We are on track with all necessary incentive considerations and are targeting to have our full applications complete within this quarter. As always, we will continue to seek out ways to manage and optimize our balance sheet and capital structure.

我們繼續與包括美國《晶片法案》官員在內的政府當局進行建設性的討論和通訊。我們正在考慮所有必要的激勵措施，並計劃在本季內完成完整的申請。一如既往，我們將繼續尋找管理和優化資產負債表和資本結構的方法。

Moving on to our guidance for the third quarter. We target revenue from continuing operations of $185 million to $215 million, with a midpoint of $200 million. I think it would be helpful to break down the $200 million revenue midpoint guidance for modeling purposes. Revenue for power devices at the midpoint of our guidance will be relatively flat as increases in EV revenue supported by additional output for Mohawk Valley will largely be offset by lower industrial and energy revenue. Revenue from materials will be at our previously stated capacity range of $90 million to $95 million, down from $101 million in the prior quarter. As stated earlier, in Q2, materials revenue benefited from an additional week of shipments in combination with strong operating execution.

接下來是我們對第三季的指導。我們的持續營運收入目標為​​ 1.85 億美元至 2.15 億美元，中間值為 2 億美元。我認為出於建模目的，分解 2 億美元的收入中點指導會有所幫助。在我們指導的中點，功率設備的收入將相對持平，因為莫霍克谷額外產量支持的電動車收入的成長將在很大程度上被工業和能源收入的下降所抵消。材料收入將在我們先前規定的 9,000 萬至 9,500 萬美元的產能範圍內，低於上一季的 1.01 億美元。如前所述，第二季度，材料收入受益於額外一週的出貨量以及強勁的營運執行力。

Our production line is now balanced and at capacity, therefore, we anticipate this being our materials capacity capabilities for the immediate future. This dated guidance would result in revenue growth in both power devices and materials year-over-year. We are targeting $20 million to $30 million of revenue to come from Mohawk Valley next quarter, approximately doubling revenue at the midpoint. This will largely offset the decrease in revenue coming from the Durham Fab, which generates approximately $90 million to $100 million of quarterly revenue, but will be below that range this quarter due to continued softness and uncertainty in the industrial energy markets in China and across Asia.

我們的生產線現已平衡並達到產能，因此，我們預計這是我們近期的材料產能。這項過時的指導將導致功率元件和材料的收入同比增長。我們的目標是下季莫霍克谷的營收達到 2,000 萬至 3,000 萬美元，約為中點收入的兩倍。這將在很大程度上抵消達勒姆工廠收入的下降，該工廠的季度收入約為9,000 萬至1 億美元，但由於中國和整個亞洲工業能源市場持續疲軟和不確定性，本季營收將低於該範圍。

The impact from the industrial and energy softness is expected to be persistent, at least over the second half of this calendar year. But as we said last quarter, much of the product we slated to ship there has a (inaudible) pipeline, and we continue to work through that inventory now. Continuing with our Q3 guidance, we target non-GAAP gross margins of 13% to 20%, with a midpoint of 16.5% driven by greater contribution from Mohawk Valley. At the midpoint, this includes $36 million or 1,800 basis points of underutilization related to the Mohawk Valley Fab.

工業和能源疲軟的影響預計將持續存在，至少在今年下半年是如此。但正如我們上季度所說，我們計劃在那裡運送的大部分產品都有（聽不清楚）管道，我們現在繼續處理該庫存。繼續我們第三季的指導，我們的非公認會計準則毛利率目標為 13% 至 20%，中間值為 16.5%，這得益於莫霍克谷的更大貢獻。中間值包括與莫霍克谷工廠相關的 3,600 萬美元或 1,800 個基點的未充分利用。

We target non-GAAP operating expenses of approximately $109 million, inclusive of $13 million of start-up costs, primarily related to The JP. We target Q3 net nonoperating expense of approximately $27 million. As I have mentioned previously, we expect nonoperating expenses to increase as the year progresses as we earn less interest income on our short-term investments in connection with our U.S. capacity expansion plan. We target Q3 non-GAAP net loss to be between $87 million and $71 million. Our Q3 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.

我們的目標非 GAAP 營運費用約為 1.09 億美元，其中包括 1,300 萬美元的啟動成本，主要與 The JP 相關。我們的目標是第三季營業外支出淨額約為 2,700 萬美元。正如我之前提到的，我們預期營業外支出將隨著時間的推移而增加，因為我們與美國產能擴張計畫相關的短期投資的利息收入減少。我們的目標是第三季非 GAAP 淨虧損在 8,700 萬美元至 7,100 萬美元之間。我們的第三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。

Before I hand the call back to Gregg for closing remarks, I would like to remind you of a few data points pertaining to our facility ramps that may help with your modeling. First, while we are on track to 20% utilization at Mohawk Valley by the end of the June quarter, the full revenue benefit of $100 million per quarter from that 20% utilization level would be realized in the December quarter. As we have said, there is roughly a 2-quarter lag between wafer starts and revenue contribution.

在我將電話轉回格雷格進行結束語之前，我想提醒您一些與我們的設施坡道相關的數據點，這些數據點可能有助於您的建模。首先，雖然我們預計在 6 月季度末將莫霍克谷的利用率提高到 20%，但 20% 利用率水準帶來的每季 1 億美元的全部收入收益將在 12 月季度實現。正如我們所說，晶圓開工和收入貢獻之間大約存在兩個季度的滯後。

In addition, as Mohawk Valley Fab utilization increases, we will start to see incrementally less underutilization. However, as The JP moves towards being ready for production, you will see incrementally more startup costs, which hit different lines in our P&L. Once The JP Phase 1 construction is complete, those start-up costs will come down and we will start to incur underutilization costs at The JP similar to what has occurred at Mohawk Valley.

此外，隨著莫霍克谷晶圓廠利用率的提高，我們將開始看到利用率不足的情況逐漸減少。然而，隨著 JP 準備投入生產，您會看到啟動成本逐漸增加，這會影響我們損益表中的不同項目。一旦 The JP 一期建設完成，這些啟動成本將會下降，我們將開始在 The JP 產生未充分利用的成本，類似於莫霍克谷發生的情況。

Now I'll turn it back over to Gregg.

現在我會把它轉回給格雷格。

Thanks, Neill. While we remain confident there is a significant and long-term demand for our products, we also understand that the silicon carbide marketplace will continue to evolve for the next several years. During transformative industry shifts, there will always be many twists and turns. But we believe we are uniquely positioned to leverage the deep domain expertise we have compiled over the last several decades into a clear advantage.

謝謝，尼爾。雖然我們仍然相信我們的產品有巨大的長期需求，但我們也了解碳化矽市場將在未來幾年繼續發展。在產業變革的過程中，總是會有許多曲折。但我們相信，我們處於獨特的地位，可以利用我們在過去幾十年中積累的深厚領域專業知識，將其轉化為明顯的優勢。

Today, we are the world's largest producer of silicon carbide material. We have long-term supply agreements with the major power device producers from around the globe. Four of those customers signed an initial agreement with us several years ago, then expanded those agreements a few years ago and expanded once again more recently. Two of which happened in the last 90 days. And this demonstrated ability to service and grow the silicon carbide materials market for the last couple of years didn't go unnoticed as we secured what I believe to be is the largest capacity reservation deposits in the history of semiconductors: the $2 billion agreement with Renesas to supply 150-millimeter and 200-millimeter substrates beginning in 2025.

今天，我們是世界上最大的碳化矽材料生產商。我們與全球主要功率元件生產商簽訂了長期供應協議。其中四家客戶幾年前與我們簽署了初步協議，然後幾年前擴大了這些協議，最近又再次擴大。其中兩起發生在過去 90 天內。在過去幾年中，我們證明了服務和發展碳化矽材料市場的能力並沒有被忽視，因為我們獲得了我認為是半導體歷史上最大的產能預留存款：與瑞薩電子達成的 20 億美元協議從2025 年開始供應150 毫米和200 毫米基板。

We know from the more than 30 years of experience of working with this material that the significant ramp required to create high-quality materials consistently at scale gives us a competitive advantage today and for the foreseeable future, especially as we begin producing 200-millimeter at The JP. The demand for silicon carbide remains significant, underscored by the 2 recent announced expansions of long-term supply agreements with existing customers. We expect to remain an important partner to other silicon carbide device manufacturers through the end of this decade. And we believe our leadership in materials provides a strong foundation for us to continue to grow our device business.

從 30 多年使用這種材料的經驗中我們知道，持續大規模生產高品質材料所需的顯著提升為我們在今天和可預見的未來提供了競爭優勢，特別是當我們開始生產 200 毫米JP。最近兩次宣布擴大與現有客戶的長期供應協議，凸顯了對碳化矽的需求仍然龐大。我們預計到本世紀末仍將是其他碳化矽元件製造商的重要合作夥伴。我們相信，我們在材料方面的領先地位為我們繼續發展我們的設備業務奠定了堅實的基礎。

We are working closely across a diverse set of customers, which gives us good visibility into how the markets are evolving and where we can capitalize on the opportunity. Being the leader in silicon carbide, a truly transformative technology, is no easy task. And we are executing on this opportunity with efficiency, purposefulness and thoughtfulness. We look forward to bringing this vision into reality and generating long-term value for all stakeholders.

我們與不同的客戶密切合作，這使我們能夠很好地了解市場如何發展以及我們可以在哪裡利用機會。成為碳化矽這項真正變革性技術的領導者並非易事。我們正在有效率、有目的、深思熟慮地抓住這個機會。我們期待將這一願景變為現實，並為所有利害關係人創造長期價值。

I'll now turn it back to the operator for Q&A.

我現在將其轉回給接線員進行問答。

(Operator Instructions) The first question is from the line of Brian Lee with Goldman Sachs.

（操作員說明）第一個問題來自高盛的 Brian Lee。

I know you get asked this every quarter, but it sounds like the tone, the confidence, some of the data points you're throwing out there, Gregg, are as positive-sounding as we heard about the internal operationals. So given Building 10, it seems like you're ahead of plan. What is the potential for Mohawk to maybe pull ahead in the ramp to 20%? I know you're super confident in being able to hit it. But how do you potentially see upside to any of these medium-term targets? I think you've talked about $100 million of revenue from that facility by the December quarter.

我知道每個季度都會有人問你這個問題，但格雷格，聽起來你的語氣、信心和一些數據點聽起來就像我們聽到的內部運作一樣積極。就 10 號樓而言，您似乎提前了計劃。莫霍克 (Mohawk) 的成長潛力有多大，預計將提升至 20%？我知道你對能夠擊中它非常有信心。但您如何看待這些中期目標的潛在好處呢？我想您已經談到到 12 月季度該設施的收入將達到 1 億美元。

So are there still internal bottlenecks operationally keeping you from accelerating? Or are there customer eval issues? Wondering, as you think about the upstream sort of not being as much of a limiting factor, how you could potentially maybe translate that to moving Mohawk Valley a little bit faster.

那麼，是否仍有內部營運瓶頸阻礙你們加速發展？或是是否有客戶評價問題？想知道，當你認為上游並不是一個限制因素時，你如何可能將其轉化為更快地移動莫霍克谷。

Thanks a lot, Brian. So first off, the team has done -- the team up in Mohawk Valley combined with several -- the teams from Durham that have gone up to Mohawk Valley, has done an incredible job of relieving bottlenecks and fine-tuning the processes, et cetera. So very pleased with the progress we're making, still have a lot to do. But obviously, tripling the revenue and then doubling it again next quarter is fantastic. We feel great about where we're at with Building 10, obviously, now having an ability to support a greater ramp of 25% is fantastic as well.

非常感謝，布萊恩。首先，團隊已經完成了——莫霍克山谷的團隊與來自達勒姆的幾個團隊聯合前往莫霍克山谷，在緩解瓶頸和微調流程等方面做了令人難以置信的工作。對我們所取得的進展非常滿意，但仍有許多工作要做。但顯然，將收入增加兩倍，然後在下個季度再增加一倍，這是非常棒的。顯然，我們對 10 號樓的現狀感到非常滿意，現在能夠支援 25% 的更大坡度也非常棒。

But as I said in the prepared remarks, we're going to keep the pace of the fab itself at the pace of 20% utilization in the June quarter, $100 million of revenue in the December quarter. We feel real good about that. But again, from a longer-term perspective, the ability to get more out of the facilities on the Durham campus in terms of supplying Mohawk Valley, it gives us really good confidence in being able to take that number up higher out in time.

但正如我在準備好的發言中所說，我們將在 6 月季度將晶圓廠本身的利用率保持在 20%，在 12 月季度實現 1 億美元的收入。我們對此感覺非常好。但同樣，從更長遠的角度來看，能夠從達勒姆校區的設施中獲得更多的資源來供應莫霍克谷，這讓我們對能夠及時提高這一數字充滿信心。

The next question is from the line of Samik Chatterjee with JPMorgan.

下一個問題來自摩根大通的 Samik Chatterjee。

I guess, Gregg, you did mention the design-in pipeline, which continues to remain quite robust on the EV front. I was just wondering, I mean, what are you seeing change in terms of conversion of design-ins to design-wins, obviously, with the design-ins picking up in pace and potentially the launch of these sort of vehicles also coming more closer? Are you seeing a bit of any changes in the conversion rates of these design-ins to design-wins eventually? And just any color there that you can share will be helpful. And I have a quick follow-up after that.

我想，格雷格，你確實提到了設計管道，在電動車領域仍然保持相當強勁的勢頭。我只是想知道，我的意思是，顯然，隨著設計的加快步伐，以及此類車輛的推出可能也越來越近，您在設計到設計勝利的轉換方面看到了什麼變化？您是否發現這些設計最終轉化為設計獲勝的轉換率有任何變化？您可以分享的任何顏色都會有所幫助。之後我會進行快速跟進。

Sure. Good question. So this past quarter, we had a record conversion of $2.9 billion to design-win that represented, as I mentioned, there's 28 different unique electric vehicle models that are in there and a whole bunch of other products as well, including a number of industrial and energy applications. So we're really happy and very -- quite frankly, the design-win conversion we just had is quite a stunning number of $2.9 billion. So I feel real good about that conversion. And then the $2.1 billion of design-in gives us confidence that customers are still very excited about our technology and our capability.

當然。好問題。因此，上個季度，我們實現了創紀錄的 29 億美元轉化為設計勝利，正如我所提到的，這意味著有 28 種不同的獨特電動車型號以及一大堆其他產品，包括許多工業產品和能源應用。所以我們真的很高興，坦白說，我們剛剛完成的設計勝利轉換金額達到了驚人的 29 億美元。所以我對這種轉變感覺非常好。 21 億美元的設計投入讓我們相信客戶仍然對我們的技術和能力感到非常興奮。

The next question is from the line of Jed Dorsheimer with William Blair.

下一個問題來自傑德·多斯海默和威廉·布萊爾。

I have one question and a follow-up. I guess for my question, Gregg, if I look at today's announcement on the material agreement, it's identical to your December announcement that turned out to be Rohm. So I'm wondering if you might be able to comment because I know that, that customer wasn't named in the previous, but you've since been able to comment on that and assuming the terms are still the same. And then I have a follow-up question, too.

我有一個問題和一個後續問題。我想，對於我的問題，格雷格，如果我看一下今天關於重大協議的公告，它與你 12 月發布的公告是一樣的，結果是羅姆的。所以我想知道您是否可以發表評論，因為我知道，之前沒有提到該客戶，但您已經能夠對此發表評論並假設條款仍然相同。然後我還有一個後續問題。

Jed, this is Tyler. Yes, we can confirm that today's announcement, the customer is Rohm. And your follow-up?

傑德，這是泰勒。是的，我們可以確認今天的公告，客戶就是羅姆。那麼你的後續行動呢？

And I just might add, we have -- sorry, Jed, just to add a couple of things. We have had a great long-term relationship with them. And we're very excited about this partnership with them going forward, helping us convert the market to silicon carbide. In the prepared remarks, I did have one typo in there. We had 3 long-term agreements that had original agreements extensions and then further extensions, and this was one of those. Go ahead, Jed.

我想補充一點，對不起，傑德，我們只是補充幾件事。我們與他們建立了良好的長期合作關係。我們對與他們的合作關係感到非常興奮，這有助於我們將市場轉向碳化矽。在準備好的發言中，我確實有一個錯字。我們有 3 項長期協議，其中包括原始協議延期和進一步延期，這就是其中之一。繼續吧，傑德。

Well, congratulations. My follow-up question, so it's similar to what Brian asked you but with a slight nuance. So if I look at what Building 10 is outputting in terms of wafer starts and what you're pulling down on that in Mohawk Valley, my calculation would be that you will have an inventory of wafers over $200 million by June, assuming that the $25 million at midpoint and maybe a $50 million to $60 million or $55 million in June, my estimates on that. So my question is, as you look through the rest of the year, clearly, that gives you some guide in terms of Siler City ramp from a buffer perspective. But what are the -- is it missy kind of getting the second of a kind tools? What are the gating factors as you think about moving around that utilization to debottleneck and capture either more or less in the back half of this year and next?

好吧，恭喜。我的後續問題與布萊恩問你的問題類似，但略有細微差別。因此，如果我看看 10 號樓在晶圓開工方面的產出以及莫霍克谷的產量，我的計算結果是，到 6 月份，晶圓庫存將超過 2 億美元，假設 25 美元據我估計，中點可能會達到100 萬美元，6 月可能會達到5,000 萬至6,000 萬美元或5,500 萬美元。所以我的問題是，當你回顧今年剩餘時間時，很明顯，這從緩衝區的角度為你提供了有關席勒城坡道的一些指導。但是，要拿到第二個同類工具是不是有點錯過了？當您考慮在今年下半年和明年繞過該利用率以消除瓶頸併或多或少捕獲時，有哪些限制因素？

Thanks for the question, Jed. And I'll kind of talk first about my perspective on this and then hand it over to Neill. So you're exactly right that we are shipping out of the Durham facilities up to Mohawk Valley and obviously, we have inventory building up there in anticipation of the ramp. So no question about that as we're trying to get ahead of things. So that's actually good news. And the way that we have the overhead track system and the storage up there it makes it perfect for that situation, number one.

謝謝你的提問，傑德。我會先談談我對此的看法，然後將其交給尼爾。所以你說得對，我們正從達勒姆工廠運往莫霍克谷，顯然，我們在那裡積累了庫存，以應對坡道。所以毫無疑問，因為我們正在努力走在前面。所以這其實是個好消息。我們擁有高架軌道系統和儲存設施的方式使其非常適合這種情況，這是第一。

Probably the more important aspect as it relates to buffering for The JP is the ability to ship up to 25%. Right now, we have very high confidence to 25% utilization out of the Durham campus. So that obviously gives us really good confidence. At this point, in the fab itself, about 75% of the tools have second of a kind tools, and we anticipate that the vast majority of the tools will have second of a kind tools by the June quarter of this year. So that will help debottleneck things because if a tool goes down, it basically stops production if there's not a second of a kind tool. So that's kind of what's happening there. Maybe I'll hand it over to Neill, if you want to add any additional color.

對於 JP 來說，與緩衝相關的更重要的方面可能是能夠運送高達 25% 的能力。目前，我們對杜倫校區的使用率達到 25% 充滿信心。這顯然給了我們很大的信心。此時，在晶圓廠本身，大約 75% 的工具擁有第二種同類工具，我們預計到今年 6 月季度，絕大多數工具將擁有第二種同類工具。因此，這將有助於消除瓶頸，因為如果一個工具出現故障，如果沒有第二個同類工具，它基本上就會停止生產。這就是那裡正在發生的事情。如果你想添加任何額外的顏色，也許我會把它交給尼爾。

Yes. So I think, Jed, what that means that there's no real change to the outlook right now. The key driver here, as we have talked about, is just ramping the revenue to $100 million by December quarter coming out of Mohawk Valley. And clearly, the inventory that we see coming out of Durham and Building 10 gives us good strength and good confidence that we'll have an available number of substrates to go drive that revenue through. So it will really be about how quickly can we get that throughput through the fab and out to customers over that period.

是的。所以我想，傑德，這意味著目前的前景沒有真正的改變。正如我們所討論的，這裡的關鍵驅動力是到 12 月季度將莫霍克谷的收入增加到 1 億美元。顯然，我們看到來自達勒姆和 10 號樓的庫存給了我們良好的實力和信心，我們將擁有足夠數量的基材來推動收入。因此，這實際上取決於我們在這段時間內能夠以多快的速度通過晶圓廠並交付給客戶。

Now one other thing I'll mention is we also mentioned on the call here is we should be able to see Durham go from 20% to 25% equivalent utilization by December or towards the end of the year. So what that means is we'll be able to go above the $100 million a quarter as you get out into kind of that March, June 2025 time frame. So -- and then when The JP starts making meaningful substrate deliveries to Mohawk Valley, probably in the back half of calendar '25, we should have a nice glide path of substrates to support us out through that period. So we feel like, obviously, the demand continues to remain strong based on the customers that we have in front of us and it really just be about ramping, delivering substrates to the fab and continuing to drive productivity and output there.

現在我要提到的另一件事是，我們在電話會議中也提到過，到 12 月或年底，我們應該可以看到達勒姆的等效利用率從 20% 提高到 25%。因此，這意味著，當您進入 2025 年 3 月、2025 年 6 月的時間範圍時，我們將能夠每季突破 1 億美元。因此，當 JP 開始向莫霍克谷交付有意義的基材時，可能是在 25 日曆年的後半段，我們應該有一個良好的基材滑行路徑來支持我們度過這段時期。因此，我們覺得，顯然，根據我們面前的客戶，需求繼續保持強勁，這實際上只是增加產能，向晶圓廠交付基板並繼續提高那裡的生產力和產量。

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

下一個問題來自富國銀行的加里‧莫布里 (Gary Mobley)。

I had just one multipart question. And I know most of the KPIs that you guys provide is on the device side. But in light of the 3 -- the 2 year-to-date announcements on the weight materials, LTSAs, and then as well with the Renesas deal signed last year, maybe if you can give us a sense of the backlog or maybe the cumulative value of live LTSAs for the materials side of the business? And the reason I'm asking is I'm just trying to get a sense of whether $95 million a quarter on the material side of the business continues in perpetuity. And related to all this, maybe if you can give us a sense of what the gross margins are like for these recent LTSAs versus previous ones in light of maybe a more competitive environment out there?

我只有一個由多個部分組成的問題。我知道你們提供的 KPI 大部分都是在設備方面。但鑑於今年迄今為止關於重量材料、LTSA 的 2 個公告，以及去年簽署的瑞薩電子交易，也許您可以讓我們了解一下積壓的情況，或者可能是累積的情況實時LTSA 對於材料業務方面的價值？我問這個問題的原因是，我只是想了解一下，該業務的物質方面每季 9,500 萬美元的收入是否會永久持續下去。與所有這些相關的是，也許您可以讓我們了解一下，鑑於可能存在更具競爭性的環境，這些最近的 LTSA 與以前的 LTSA 的毛利率如何？

Okay. Thanks a lot. So a couple of things, and thanks for the question. A couple of things. We do have 3 customers under long-term agreements that did original agreements extended and then extended again. And I don't know exactly what percentage of the number has been -- what the total number of those expansions are, I don't have that on me. But we've most recently extended those agreements with all 3 of them. So you can kind of think of it we have quite a bit of runway in front of us. We don't get into the details on that, but you can kind of think about a half a decade is kind of the ZIP code when we would do these kind of extensions, if you will.

好的。多謝。有幾件事，謝謝你的提問。有幾件事。我們確實有 3 位簽訂了長期協議的客戶，他們先延長了原始協議，然後又延長了協議。我不知道具體數量的百分比是多少——這些擴展的總數是多少，我身上沒有。但我們最近延長了與這三個國家的協議。所以你可以想像一下，我們前面有相當長的跑道。我們不會詳細介紹這一點，但如果您願意的話，您可以將五年視為我們進行此類擴展時的郵遞區號。

With regards to $95 million, that's certainly going to be the near-term target that you should keep in mind. When that -- where that will change is when we start ramping the deliveries of 200-millimeter substrates to Renesas out of The JP. That's when the capacity expansion hits in pretty full steam.

至於 9500 萬美元，這肯定是您應該牢記的近期目標。當我們開始增加從 JP 向瑞薩電子交付 200 毫米基板時，情況就會改變。這就是產能擴張全面展開的時候。

In terms of -- in terms of demand for the product and I would say, gross margin proxy for pricing, the demand for high-quality wafers remains very, very high. We constantly have customers saying they would like to get more for us this quarter and next quarter, et cetera. So that's kind of a normal type thing. And I would say the pricing environment for quality substrates is very favorable for us.

就產品的需求而言，我想說的是定價的毛利率代理，對高品質晶圓的需求仍然非常非常高。我們不斷有客戶表示他們希望本季和下季為我們提供更多產品，等等。所以這是一種正常的事情。我想說優質基材的定價環境對我們非常有利。

Yes. Let me just add to that. I think that from a margin perspective, I think what we've always said is from the materials side, if you look at a long-term goal of 50% margin for the overall business, the materials' products are already in there in kind of that ZIP code, so to speak. So as you look out in time, these new agreements that we're signing certainly support that or even more as you look out into the future.

是的。讓我補充一下。我認為，從利潤率的角度來看，我認為我們一直說的是從材料方面來看，如果你著眼於整體業務 50% 利潤率的長期目標，那麼材料產品已經以實物形式存在了。可以這麼說，該郵遞區號。因此，當您及時觀察時，我們正在簽署的這些新協議肯定會支持這一點，甚至在您展望未來時會提供更多支援。

The next question is a follow-up from Samik Chatterjee with JPMorgan.

下一個問題是 Samik Chatterjee 與摩根大通的後續問題。

I guess my follow-up was more on the industrial weakness that you're seeing and just trying to think about how to sort of extrapolate that to thinking about the June quarter as well. You are indicating you take a step down on power devices revenue related to that industrial weakness that you're seeing. But how are you thinking about how long that continues in terms of weakness? Is there an incremental step down in relation to that weakness you're seeing based on your current visibility? Just trying to get a sense of as Mohawk ramps, how do we think about sort of the offsets to that?

我想我的後續行動更多是關於您所看到的工業疲軟，並且只是試圖思考如何將其推斷到六月季度。您表示您將減少與您所看到的工業弱點相關的電力設備收入。但您如何看待這種疲軟狀態會持續多久？根據您目前的可見度，您所看到的弱點是否會逐步下降？只是想了解莫霍克的崛起，我們如何考慮對此的補償？

So first off, industrial is definitely weak, as we had mentioned last quarter as well. And it is mainly driven by Asia and China, but it's weak across Europe and U.S. as well. And it's hard to tell when things are going to get better. But from a planning perspective, we're not anticipating it getting better this year, this calendar year. So we're just assuming it's going to be where it's at.

因此，首先，正如我們上季度提到的那樣，工業肯定疲軟。它主要是由亞洲和中國推動的，但在歐洲和美國也很疲軟。而且很難判斷情況何時會好轉。但從規劃的角度來看，我們預計今年的情況不會好轉。所以我們只是假設它會在它所在的地方。

Now the industrial business is a really good business for us, and it will come back. And what we're doing in the meantime is we're ramping Mohawk Valley, which is almost targeted right now at automotive customers. So we will be ramping Mohawk Valley and driving that up. We're converting as much as practical out of Durham to supply for the automotive customers as well, but we are limited on the Durham footprint from that perspective.

現在工業業務對我們來說是一個非常好的業務，而且它會回來的。同時，我們正在做的是擴大莫霍克谷的業務，目前幾乎針對的是汽車客戶。因此，我們將大力發展莫霍克谷並推動其發展。我們正在盡可能地將達勒姆的產品轉化為汽車客戶的供應，但從這個角度來看，我們在達勒姆的足跡受到限制。

But the good news is eventually, and we've all seen the movie, the industrial business will pick back up. And when it does pick back up, we will largely be an automotive output out of Mohawk Valley and giving us room then in the Durham facility to continue ramping when the industrial business picks back up. And again, we've gotten a lot of design-ins and a lot of design-wins there. It will come back up. That's a great business for us. We love the customers in that space. And we'll have ability out of the Durham facilities to handle that.

但好消息是，我們都看過這部電影，工業業務最終將會復甦。當它確實回升時，我們將主要是莫霍克谷的汽車產量，並為我們在達勒姆工廠提供空間，以便在工業業務回升時繼續擴大產能。再說一遍，我們在那裡獲得了許多設計成果和設計成果。它會回來的。這對我們來說是一項偉大的事業。我們喜歡這個領域的客戶。我們將有能力利用達勒姆的設施來處理這個問題。

Yes. And Samik, let me just try and help out here from a modeling perspective a little bit. If you go look at just the 2Q revenue, we saw about a 30% increase in the EV-related device kind of revenue. We'll see that again in 3Q, but that will be offset by weaker industrial energy revenue. You can think about a 15% decline 2Q going into 3Q, kind of at the midpoint. So from a modeling perspective, when we think about the Durham revenue, which is primarily industrial and energy revenue, the capacity we've talked about is about $90 million to $100 million a quarter. Now that's going to be lower than that kind of moving forward. You can think about $80 million to $85 million of Durham-based power device revenue coming out over the next several quarters.

是的。 Samik，讓我試著從建模的角度提供一點幫助。如果你只看第二季的收入，我們會發現電動車相關設備的收入成長了約 30%。我們將在第三季再次看到這種情況，但這將被工業能源收入疲軟所抵消。你可以想像第二季到第三季會下降 15%，大概是中點。因此，從建模的角度來看，當我們考慮達勒姆的收入（主要是工業和能源收入）時，我們討論的產能約為每季 9,000 萬至 1 億美元。現在這將低於向前推進的情況。您可以想像，未來幾個季度，位於達勒姆的功率裝置收入將達到 8,000 萬至 8,500 萬美元。

So if you put all of those pieces together, we talked about for modeling purposes, materials being in that kind of $90 million to $95 million range per quarter. The Durham Fab, as I just said, in that kind of $80 million to $85 million range as long as the industrial and energy revenue continues to remain down at those levels. Again, as Gregg said, it could come back at some point, likely will. But all of the growth essentially in the immediate term is really going to be from Mohawk Valley. So what you can think of as kind of flattish on materials, flattish on the Durham output from a device perspective and growth from the $25 million or so midpoint we just saw in the guidance we gave for 3Q growing above that point as you move out into the future and towards $100 million in the December quarter. So that's kind of the way to think about it over the next few quarters.

因此，如果將所有這些部分放在一起，我們會出於建模目的討論材料，每季的材料價格在 9000 萬美元到 9500 萬美元之間。正如我剛才所說，只要工業和能源收入繼續保持在這個水平，達勒姆工廠的投資就在 8,000 萬至 8,500 萬美元之間。正如格雷格所說，它可能會在某個時候捲土重來，很可能會捲土重來。但短期內所有的成長基本上都將來自莫霍克谷。因此，您可以認為材料方面持平，從設備角度來看，達勒姆的產出持平，並且從我們剛剛在我們給出的第三季度指導中看到的2500 萬美元左右的中點開始增長，隨著您進入未來並在 12 月季度實現 1 億美元目標。這就是未來幾季思考這個問題的方式。

The next question is from the line of Harsh Kumar with Piper Sandler.

下一個問題來自 Harsh Kumar 和 Piper Sandler。

I actually had 2, one for Neill and one for Gregg. Gregg, the first one for you. We get this from a lot of customers where people say, okay, Mohawk is just getting going and it's going to be really good. But then you are also sort of tied to a German fab, and that would be another project that you would take on. So I wanted to understand your level of commitment to getting into the German facility while you're still ramping Mohawk.

我實際上有兩份，一份給尼爾，一份給格雷格。格雷格，第一個給你的。我們從很多客戶那裡得到了這樣的訊息，人們說，好吧，莫霍克剛開始發展，它會非常好。但你也與德國晶圓廠有某種聯繫，這將是你要承擔的另一個計畫。所以我想了解一下，當你仍在提升莫霍克髮型時，你對進入德國工廠的承諾程度。

And then, Neill, I'll just go ahead and ask you my question as well. I wanted to understand the difference in cost, the underutilization cost from Mohawk Valley relative to The JP Siler City costs for start-up. And so is it not fair for me to think that the -- you would come out a little bit ahead as you get closer to the September, December time frame because the underutilization costs are significantly more than perhaps the start-up costs at Siler City JP?

然後，尼爾，我也將繼續問你我的問題。我想了解成本差異，莫霍克谷的未充分利用成本相對於 JP Siler City 的啟動成本。因此，我認為，當您接近 9 月、12 月的時間框架時，您會提前一點，因為未充分利用的成本可能遠高於 Siler City 的啟動成本，這是否不公平J.P？

Yes, Harsh, thanks for the question. We have received initial notification of funding for the IPCEI process in Europe for the fab in Germany. There's still a considerable amount of work to be done before we begin construction, and that includes our European chipset application approval. There's regulatory filings around the world, permitting, a whole bunch of different things that need to happen. So I wouldn't anticipate that we would begin construction of that fab until calendar 2025. So in between now and then, our full focus is on Mohawk Valley, ramping that fab.

是的，嚴厲，謝謝你的提問。我們已收到歐洲 IPCEI 流程為德國晶圓廠提供資金的初步通知。在我們開始建造之前，仍有大量工作要做，其中包括我們的歐洲晶片組申請批准。世界各地都有監管備案，允許發生一大堆不同的事情。因此，我預計我們要到 2025 年才會開始建造該工廠。因此，從現在到那時，我們的全部重點都放在莫霍克谷上，擴大該工廠的產能。

I was up at the fab several times last quarter. I'll be up there again next week. And we've got -- we certainly have my full attention, but the whole organization's attention on doing everything we can to ensure we have a great ramp of that fab. I would note a couple of other things just really quickly before I turn it over to Neill. We have talked about a dozen or so parts that are qualified out of Mohawk Valley, including our biggest parts, the most complicated parts and so forth.

上個季度我去過工廠好幾次。下週我會再去那裡。我們當然得到了我的全力關注，但整個組織的注意力都在盡我們所能，以確保我們擁有該晶圓廠的巨大產能。在將其交給尼爾之前，我很快就會注意到其他幾件事。我們已經討論了莫霍克谷合格的十幾個零件，包括我們最大的零件、最複雜的零件等等。

The other thing to realize is all of these MOSFETs that I just talked about qualifying, they qualified first-pass. And that is not normal. There's -- you normally find something, some problem or qualify with an (inaudible) saying you're going to put some kind of something in place to kind of make sure that the quality -- that we only ship quality products to customers. We qualified first-pass on all those parts. And I think that gives us a huge boost of confidence in the underlying capability of this factory.

另一件需要意識到的事情是我剛才談到的所有這些 MOSFET 的資格賽，它們都通過了首輪資格賽。這不正常。通常，您會發現一些東西、一些問題，或者有資格（聽不清楚）說您將採取某種措施來確保質量，即我們只向客戶提供優質產品。我們對所有這些部件進行了首次通過。我認為這極大地增強了我們對這家工廠的基本能力的信心。

Yes. So Harsh, maybe it's important just to break down the gross margin a little bit and some of the markets that we've had out there and kind of maybe just give you a little bit of kind of my view in terms of what that means from an underutilization perspective. So we had a good quarter from a gross margin perspective, above the midpoint of our guidance range. We've also seen strong underlying gross margin improvement, excluding the underutilization over the last couple of quarters.

是的。所以，嚴格地說，也許重要的是稍微細分一下毛利率和我們已經擁有的一些市場，也許只是給你一點我的觀點，這意味著什麼未充分利用的觀點。因此，從毛利率的角度來看，我們的季度表現不錯，高於我們指導範圍的中點。我們也看到了潛在毛利率的強勁改善，不包括過去幾季利用率不足的情況。

In fact, if you go back to the June quarter until the guidance we just gave here in Q3, we've seen approximately 400 basis points of improvement of margin in just 3 quarters on an underlying basis. In addition to that, I think we've seen the cost of the 200-millimeter substrate, the yields on those as well as the initial costs in Mohawk Valley on a unit basis be very much in line with what we had anticipated. So as we've always said, the more revenue we pushed through Mohawk Valley, the better we'll see -- the faster we'll see that kind of -- some of that gross margin execution.

事實上，如果你回到 6 月季度，直到我們剛剛在第三季度給出的指導，我們就發現在短短 3 個季度內，利潤率就基本提高了約 400 個基點。除此之外，我認為我們已經看到 200 毫米基板的成本、這些基板的產量以及莫霍克谷單位基礎上的初始成本與我們的預期非常一致。因此，正如我們一直所說的那樣，我們透過莫霍克谷推動的收入越多，我們就會看到越好 - 我們會越快看到這種 - 一些毛利率執行。

Now as you said previously there on the underutilization, that will be a little bit of a drag for us. We talked about $36 million last quarter at Mohawk Valley would be flattish and get up to a peak of about $38 million as you get into Q4. So what that will mean is, we kind of put a marker out there of about a 20% gross margin or approaching that in kind of the Q4 time frame. You can think about that in the kind of mid- to high teens, probably exiting the year and then back maybe pushing up 20% or so out a quarter or so as we look out in time. So what that means is, yes, we will start to see the underutilization kind of peak out there in the Q4 period start to come down a bit. But just a reminder, those start-up costs you mentioned in Siler City, those are currently on the OpEx line, about $10 million last quarter. That will probably grow to about $15 million as we exit the year.

正如您之前所說的利用率不足，這對我們來說會有點拖累。我們談到莫霍克谷上個季度的 3,600 萬美元將持平，進入第四季時將達到約 3,800 萬美元的峰值。因此，這意味著我們將毛利率設定為 20% 左右，或在第四季度的時間範圍內接近這一水平。你可以想像一下，在大約十幾歲的時候，可能會在今年結束時，然後隨著我們及時觀察，可能會在一個季度左右推升 20% 左右。所以這意味著，是的，我們將開始看到第四季度利用率不足的高峰開始下降。但提醒一下，您在 Siler City 提到的那些啟動成本，目前都在 OpEx 線上，上個季度約為 1000 萬美元。當我們今年結束時，這個數字可能會增加到大約 1500 萬美元。

As Siler City goes into production probably in the second half of fiscal '25, that kind of first half of calendar '25, we'll see those transition from underutilization up to the gross margin line. So a few moving pieces there to think about, as I mentioned in the prepared remarks. But the key here is underlying, we are seeing very strong performance and anticipate seeing that strong performance continue as we drive more volume through the scale facilities that we're building.

隨著 Siler City 可能在 25 財年下半年（也就是 25 日曆年上半年）投入生產，我們將看到從利用率不足到毛利率線的轉變。正如我在準備好的發言中提到的，有一些值得思考的感人的事情。但這裡的關鍵是潛在的，我們看到了非常強勁的業績，並預計隨著我們透過正在建造的規模設施推動更多產量，強勁的業績將繼續下去。

The next question is from the line of Jack Egan with Charter Equity Research.

下一個問題來自 Charter Equity Research 的 Jack Egan。

I just had one. I was curious, why didn't either of the recent LTAs signed with Infineon and Rohm include 200-millimeter? Because we've seen some other companies sign some wafer deals that have included 200-millimeter even if it's just a general long-term aspiration to eventually move to 200. So I mean wouldn't The JP at least eventually give you some capacity that you could turn around and sell to device or materials customers by, I guess, 2026?

我剛喝了一個。我很好奇，為什麼最近與英飛凌和羅姆簽署的長期協議中沒有包括 200 毫米？因為我們已經看到其他一些公司簽署了一些包含 200 毫米晶圓的協議，即使這只是最終轉向 200 毫米的普遍長期願望。所以我的意思是，JP 至少最終不會為您提供一些產能我想，到2026 年，您可以轉身向設備或材料客戶出售產品嗎？

Thanks a lot, Jack, for the question. And I would start off by saying all of our long-term supply agreement customers are asking about 200 millimeter. It's obviously front and center in their mind and something that they're very interested in engaging with us on. We've engaged so far -- we've announced the engagement so far of one, which is the deal we did with Renesas last year. And just to recall, that begins shipping 200-millimeter in 2027. In between now and then, we've got all of our focus on getting The JP up and running to feed the Mohawk Valley Fab. Getting to 20% utilization in the June quarter got really good line of sight, but we're also going to have to ramp The JP to get the other 80% utilization.

非常感謝傑克提出這個問題。我首先要說的是，我們所有的長期供應協議客戶都要求大約 200 毫米。這顯然是他們心目中的首要和中心問題，也是他們非常有興趣與我們互動的事情。到目前為止，我們已經訂婚了——我們已經宣布了其中一項訂婚，這是我們去年與瑞薩電子達成的交易。回想一下，200 毫米晶圓將於 2027 年開始出貨。從現在到那時，我們所有的注意力都集中在讓 JP 啟動並運行，為莫霍克谷晶圓廠供電。在 6 月季度達到 20% 的利用率確實是一個很好的目標，但我們還必須提高 The JP 的利用率才能獲得另外 80% 的使用率。

Now the one thing that I would tell you is, we have a high degree of confidence in our ability to do that, and I'll tell you why. In March of this past year, we turned on the Building 10 operation. We've got certificates of occupancy, and began producing wafers and -- boules and wafers out of that facility. And less than a year later, we're feeling very confident of taking what was a basketball court, a squash court, a bunch of offices and converting it into a 200-millimeter silicon carbide crystal growth operation, and being able to feed 25% of the world's largest 200-millimeter wafer fab.

現在我要告訴你的一件事是，我們對我們做到這一點的能力充滿信心，我會告訴你原因。去年3月，我們啟動了10號樓的營運。我們已經獲得了入住證書，並開始從工廠生產晶圓和晶錠和晶圓。不到一年後，我們非常有信心將籃球場、壁球場、一堆辦公室改造成 200 毫米碳化矽晶體生長工廠，並能夠滿足 25% 的需求全球最大的200毫米晶圓廠。

Well, all of that experience is going to be applied to The JP, which we purposely kept less than an hour's drive from our campus. And the reason we did that is we wanted the same people who ramped Building 10 to ramp The JP. And so now you're talking about a purpose-built facility. We're not trying to work around what used to be an office and all the -- you can imagine all the challenges we had converting that space to a crystal growth operation. We'll have none of that problem in The JP because it's built as a silicon carbide crystal growth operation. So very, very confident about that.

嗯，所有這些經驗都將應用於 The JP，我們特意將其保留在離校園不到一小時車程的地方。我們這樣做的原因是，我們希望像 10 號樓的開發人員一樣來開發 The JP。所以現在你談論的是一個專門建造的設施。我們並不是試圖解決以前的辦公室和所有的問題——你可以想像我們將這個空間轉變為晶體生長操作所面臨的所有挑戰。在 JP 中我們不會遇到這個問題，因為它是作為碳化矽晶體生長操作而建造的。對此非常非常有信心。

The next question is from the line of Joshua Buchalter with TD Cowen.

下一個問題來自 Joshua Buchalter 和 TD Cowen。

Actually a nice segue from your response to the previous question. I wanted to ask about sort of the time line and slope of The JP's ramp. I guess any incremental color you can give us. I know you mentioned SOP in the -- by the end of the year, and then it sounds like back half of calendar '25 is a reasonable time line for first power devices built on JP wafers. But any incremental color, should the slope looks similar in -- directionally as what went on in Building 10?

實際上，從您對上一個問題的回答來看，這是一個很好的延續。我想問 JP 坡道的時間軸和坡度。我想你可以給我們任何增量顏色。我知道您在今年年底之前提到了 SOP，然後聽起來 25 年的後半段對於在日本晶圓上構建的第一批功率裝置來說是一個合理的時間線。但是任何增量顏色，坡度在方向上看起來是否應該與 10 號樓的情況相似？

Yes. I think you have roughly the right kind of numbers there. And the only additional color I would add is what we said in our prepared remarks, which is we're going to be installing crystal growers in there next month. So the facility is ready for installation of crystal growers. We're not going to energize them and produce wafers until the back half of this calendar year. But I think all of the timing that you just talked about feels pretty reasonable. And I would say at this point, the team has done a great job. That was a forest not too long ago, and now is a giant crystal growth factory. And at this point, we're on schedule.

是的。我認為你那裡的數字大致正確。我要添加的唯一額外的顏色是我們在準備好的評論中所說的，即我們將在下個月在那裡安裝晶體生長器。因此，該設施已準備好安裝晶體生長器。直到今年下半年我們才會供電給它們並生產晶圓。但我認為你剛才談到的所有時機都感覺很合理。我想說，在這一點上，團隊做得很好。不久前那還是一片森林，現在已經是一座巨大的晶體生長工廠了。現在，我們正按計劃進行。

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

下一個問題來自美國銀行的 Vivek Arya。

I actually got 2 questions. First, Neill, could you just repeat the gross margin outlook you gave for December? I think you gave the different moving parts, but if you could help kind of quantify what you see as gross margins heading into December. And then Gregg, my question is how do you handle situations where you are bidding for the same EV business that your materials customers are also bidding for?

我實際上有兩個問題。首先，Neill，您能否重複一下您對 12 月份毛利率的展望？我認為您給出了不同的活動部分，但如果您能幫助量化您所看到的進入 12 月的毛利率。然後格雷格，我的問題是，當你競標你的材料客戶也在競標的同一電動車業務時，你如何處理這種情況？

Yes. So first, on the gross margin front, just if you think about, number one, in the current quarter, we're going to be about flattish right around the 16.5% and that's really based off of 2 things. One is, we'll have a drag of about 100 basis points just off the leverage of the underutilization just on the lower revenue, but underlying performance offsetting that by about 100 basis points. So continuing to see good execution as you think about the underlying ability to generate better costs and better margin profiles.

是的。首先，在毛利率方面，第一，在本季度，我們的毛利率將在 16.5% 左右持平，這實際上基於兩件事。一是，由於收入下降，利用率不足的槓桿作用將導致約 100 個基點的拖累，但基本業績抵消了約 100 個基點的影響。因此，當你考慮產生更好的成本和更好的利潤狀況的潛在能力時，繼續看到良好的執行力。

As we move out to the June quarter, I think previously, we had talked kind of about a 20% marker. I think that moves out about a quarter. So June quarter, you're probably talking about kind of mid- to high teens based on what we're looking at now as we start to push more product through Mohawk Valley. So really Mohawk Valley will start to generate not just more volume. But as we push more product through there, we really like the cost structure and of course, you get the benefit of the volume over that underutilization.

當我們進入六月季度時，我想之前我們已經討論過 20% 的標記。我認為這會移出大約四分之一。因此，在六月季度，當我們開始在莫霍克谷推出更多產品時，根據我們現在所看到的情況，您可能正在談論中到高中的青少年。因此，莫霍克谷實際上將開始產生的不僅僅是更多的產量。但當我們在那裡推出更多產品時，我們真的很喜歡它的成本結構，當然，你會從數量上獲得好處，而不是利用不足。

The remainder of the year as you get out to December, you should see kind of a linear improvement, Vivek, in terms of margin beyond that. Like I said, out beyond June into September, we've been pushing that 20% marker out of quarter to the September quarter. However, when The JP comes online from a production perspective and think about that in that kind of March, June time frame of 2025, those underutilization costs will then come out of OpEx and we'll need to put those into gross margin. We should be exiting the year about $15 million. You could see it grow up to even $25 million or so before it makes that move. So that's just something to consider from a modeling perspective as you get out beyond December and into the kind of March and June quarters of 2025 as we start to bring The JP online.

到了 12 月，今年剩下的時間裡，您應該會看到利潤率出現線性改善，Vivek。正如我所說，從 6 月到 9 月，我們一直在將 20% 的指標從季度推到 9 月季度。然而，當 JP 從生產角度上線時，並考慮在 2025 年 3 月、6 月的時間範圍內，那些未充分利用的成本將從營運支出中扣除，我們需要將其計入毛利率。我們今年應該退出大約 1500 萬美元。在採取這一行動之前，你可能會看到它甚至會成長到 2500 萬美元左右。因此，當您在 12 月之後進入 2025 年 3 月和 6 月季度（我們開始將 The JP 上線）時，從建模的角度來看，這只是需要考慮的事情。

And then, Vivek, in terms of the other question, I would say, number one, our materials customers are exactly that. They are customers of ours. We treat them as such. We have quality meetings with them. We have typical quarterly program reviews and things like that. So we treat them as customers as they are definitely helping us convert the power electronics market from silicon to silicon carbide.

然後，Vivek，就另一個問題而言，我想說，第一，我們的材料客戶就是這樣。他們是我們的客戶。我們這樣對待他們。我們與他們舉行了高品質的會議。我們有典型的季度計劃審查和類似的事情。因此，我們將他們視為客戶，因為他們肯定會幫助我們將電力電子市場從矽轉變為碳化矽。

I can tell you that when I joined the company 6 years ago or so, I believe there was one OEM that was committed to using silicon carbide in an inverter. And of course, that was Tesla. Today, I don't know every single OEM, but I actually can't name an OEM that isn't using silicon carbide, maybe not across their entire platform, but they're using silicon carbide in some of their models. I can't name one that's not. So there probably is, I'm not aware of, but I can't tell you who that is. So I think that's -- what that shows is a pretty dramatic increase in the appetite for silicon carbide across all of our materials customers and ourselves.

我可以告訴你，當我大約 6 年前加入這家公司時，我相信有一家 OEM 致力於在逆變器中使用碳化矽。當然，那就是特斯拉。今天，我不認識每一個 OEM，但實際上我無法說出沒有使用碳化矽的 OEM，也許不是在整個平台上使用碳化矽，但他們在某些型號中使用碳化矽。我無法說出一個不是的。所以可能有，我不知道，但我不能告訴你那是誰。所以我認為這顯示我們所有材料客戶和我們自己對碳化矽的需求急劇增加。

Maybe one thing that I'll note is on the 28 models that I have mentioned that are transitioning from design-in to design win, we can confirm that we are the prime source on 27 of those 28. I think we're the prime source on the 28, but I can't confirm that one. So I think it's an exciting opportunity for us. It's an amazing amount of things that are going on. I think there's going to be a lot of puts and takes in the EV industry over the coming couple of years. This is the biggest transformation in the history of the automobile industry. It's going to be the most disruptive in the history of the automobile. And we feel like we're at the early stages of that transition.

也許我要注意的一件事是，在我提到的 28 款正在從設計導入過渡到設計獲勝的模型中，我們可以確認我們是這 28 款中 27 款的主要來源。我認為我們是主要來源28日消息來源，但我無法證實這一點。所以我認為這對我們來說是一個令人興奮的機會。正在發生的事情數量驚人。我認為未來幾年電動車產業將會發生很多變化。這是汽車工業史上最大的變革。這將是汽車史上最具顛覆性的一次。我們覺得我們正處於這轉變的早期階段。

There are no further questions in queue. With that, I'd like to turn the call over to Gregg Lowe, CEO, for concluding remarks.

隊列中沒有其他問題。說到這裡，我想將電話轉給執行長格雷格·洛 (Gregg Lowe) 進行總結發言。

Well, thanks, everybody, for being a part of this call today, and we look forward to chatting with you on our next earnings call. Thank you very much.

好的，謝謝大家參加今天的電話會議，我們期待在下次財報電話會議上與您交談。非常感謝。

That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。