ON - Earnings call transcript Q1 2021 | ON Semiconductor Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the ON Semiconductor First Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Parag Agarwal, Vice President of Investor Relations and Corporate Development. Thank you. Please go ahead.

Parag Agarwal

Thank you, Denise. you results ON conference thank quarter Corporation’s and quarterly XXXX call. morning for Semiconductor joining first Good I am joined and CEO today by Hassane Thad our El-Khoury, Trent, CFO. and our President section being the webcast This website call Investor is Relations www.onsemi.com. at of on our conference webcast, our be days replay on and XXXX first be at a conference available call approximately XX X call. recorded with quarter A along this our will release for earnings approximately following this will this webcast of website available hour following

related fiscal posted information and website. segments, end geographies, channels, business Additional to markets, calendar our share count on XXXX also are our

Our earnings earnings directly and presentation which on separately release, most are in comparable non-GAAP these financial includes certain GAAP release is Reconciliation Investor posted of measures. the website Relations this section. measures our measures our with the in financial under non-GAAP included

call, estimate, this identify future events make During are or with and other believe, from words forward-looking in of conference such our or that course and are or actual could Exchange that wish to differ caution described our actual performance results statements can XX-Qs results expect, may, statements. similar cause could future Form and Form filings our that materially financial subject we cause statements business, the regarding expressions are from forward-looking Commission. risks projections. to to to forward-looking which uncertainties factors factors XX-K, Important events or large, intended will, affect other Securities project, including differ intend, will should anticipate, The statements company. We of projections the to

quarter our in are first factors described release earnings for XXXX. Additional of the

to obligation forward-looking except as may change other the change or other company required events statements assumes forward-looking occur, to no actual and law. by may or assumptions Our results, that statements update reflect estimates

in an to to the New Our you all August and We event person forward look is in seeing host Analyst scheduled for we plan X. City summer. in Day York

We a details the regarding in will further event weeks. few send out

Now, it let turn me over Hassane. Hassane? to

Hassane El-Khoury

you for us thank Thank you, joining and today. Parag everyone

we by year-over-year. results reported strategic driven For first $X.XX execution XX% up end quarter broad-based of XXXX, across the and posted our billion, markets. We revenue strength strong of solid

gross to with More gross basis is points focus show increasing expansion and basis margin results, by beginning margin first quarter-over-quarter. on importantly, year-over-year quarter by XX our XXX

and drive We mix towards and have to to ensure continue we portfolio chain, drive taken time, cost shifting sustainable right we steps same to of continue product for to throughout capture these operations that channel steps our efficiency our favorable our products the results. our optimize margins. improvements value and and product supply the strategy will At our higher improving

markets. global are manufactured also steep as partners pockets, acceleration in in certain publicized, products seeing our increased by demand especially strength while has the is manufactured strength most is And momentum. see demand We market we automotive and our internally. activity supply products, industrial foundry well certain those across ability the in to market industrial the gaining in end impacted This

taken our year, to the of and will our will on strategic the acceleration building over ensure partners our sheet quarters few the in that the in to second supply customers. able we ensure having our customers seen timely This to begin to steep have demand products are reducing the at we balance a but working are quickly healthy half remain inventory, subside respond very We manufacturing inventory and to by control of channel. needs level. likely in last inventory steps to diligently supply our have customers strategic with in better By of our continued to distribution

high previous call, initiatives, growth expect demand as in stabilizes and On transformation this to in later our At our the costs. goal the we I and our whole balance back address given to in looking the our recent year. the supply are in and realign supply chain accelerate same price identify across pricing to demand increases and We our practices our resources at are had to investment get the time, material structure realigning margin to cost businesses. value indicated discrepancies

to our We over provide strategic importantly, agreements ensure are price visibility with supply productively costs, engaging working with to the we few customers recover years. our better these to but and more long-term customers next secure

streamline have organization made improve we and the last Over several to efficiency. the few months, changes

we with My current path and goal for execution promoted markets the changing from the next efficiently transformation of best on track an company I to interest in are have the potential records, to able positioned condition years. objectively is is to margin end focus automotive the growth all markets. accelerating X is with on leaders a have We and our the leaders business strength to shareholders. brought the expansion make to to bullish growing believe and market in solid These organization react margin key capitalizing that able with strategic strong potential. fastest new from our and of within, quickly set our decisions benefit the uniquely in and on semiconductor industrial megatrends and remain are over

a our talented value and customers and can we for With strategy assets and a shareholders, motivated We execution employees. investment and consistent have highly disciplined and strong the maximize outstanding workforce.

with Analyst insights you our into on provide X. Day will our strategy and We at August greater targets

an XX% highlights revenue a markets, a set strategic starting of discuss million. automotive. automotive me of and strong QX, QX with ultrasonic automotive now sensors, and maintain our our revenue in Let We key revenue record end for in with our MOSFETs, CMOS image was to of new This of represents lighting few momentum continue $XXX increase we vehicle QX broad-based This and electrification, XXXX. products. XX% from revenue increase

vehicle and late win These of products to momentum the our to are module. starting wins the few these quarter, Tier recently IGBT during electric vehicles. in more electric ‘XX have design strong see to global dissipation first expected will carbide in OEMs, improving years. see silicon continue differentiation And leading ramp will for whom important secured heat Among wins in the marquee of We and significant is of we platforms. launched and with for the source next growth contribute It few packaging, expertise our than footprint the over reducing platforms. and critical technology to we the is which takes most X

which of sensors vehicle, and the in during on the sensing of is the vast have this relationships, in vehicle. strong single been addition, during and a a From we solid military, enables battery make network, our to up automotive the higher to built of expected first very the XXXX, industrial quarter, modules contributed at for a Customer customer domain between favorable distribution quality. silicon XX% end few we customers competitors, quarter been first has XX for solutions includes strong. reputation revenue. and win knowledge XXXX. modules In of than of serving we efficiency our our The cost trade-offs ramp $XXX industrial of customers of platform market, on image automotive which time, a have secured range to in million that which medical, feedback traction our carbide The the aerospace is and revenue and a our decades, for meaningfully

to a a momentum XX%, industrial demand. driven end alternative our geopolitical strong continue In various from first of area by impact in by power our to the customer, increased factors growth. energy the a we market, see quarter modules applications related revenue being broad-based Excluding with for specific industrial key

electric for design into and win charging are we We our silicon OEM. vehicle our secured EV expanding the an first our emerging for a with modules customer infrastructure carbide power engagement application

Now, additional guidance. our over turn call details I to Thad to Thad? the will financials provide on and

Thad Trent

Hassane. Thanks,

to start am me our a time company. that Let Semiconductor at exciting for ON very by saying energized I join

value have shareholders, as create tremendous and we transformation. execute customers for strategic We employees opportunities to our our

teams blocks results sustainable product We of during robust this have excellent the operational to and a drive building financial scale transition. portfolio,

let me on Now, current the business environment. comment

the by economic During acceleration business quarter in of further saw in activity. continuing first global driven we conditions, XXXX, recovery

in increase daily across products as content are our seeing strength to lives. We broad-based continues the end-markets we most in encounter semiconductor

Hassane from megatrends end continue automotive industrial now XX% account to in for the benefit As market, which of revenue. total we mentioned, secular and our

have faced inventory our balance proactive balance down, will inventory supply start sheet. channel by we the on more and is believe We to customers holding later industry taking our while through year. with management severe a the constraints demand globally, Although in supported supply

of Now, basis quarter higher XXXX versus point driven me products, to increase utilization and to sequential turn The quarter. year-over-year point quarter with revenue improvements quarter-over-quarter quarter for driven laser on over billion, decline margin Gross $X.XX XX respectively. in XX% increase across the cost are was and first XX% an by improved let XX.X%, margin results X% margin Revenue company. XXX was for of our X.X% for of of automotive improvement by first The XXXX growing first of strength the X%. to mix focus and a year-over-year was and structures by of basis the a the gross broad-based seasonality normal XX% and the sequentially. being improved an industrial XXXX improvement

XX% with utilization factory demand. ramp was Our as align the we strong in to production

the fab cost continue mix first per the our for our fabs per was in the products us the quarter net to per structure. As our compared of reduce to share XXXX. the first earnings for as $X.XX our to compared we manufacturing strategy GAAP income to will as quarter Non-GAAP allow $X.XX overall optimize move footprint to per lighter and XXXX. forward, share diluted of within per share XXXX quarter reduce quarter, share first in first loss share diluted of of net was $X.XX a of $X.XX

due on provide the quarter let Revenue Group, for first for our Advanced with or increase ASG, quarter revenue computing or an year-over-year increased automotive, of for year-over-year. in $XXX.X of $XXX XX% the Solutions PSG Next, million. PSG first end units, strength Revenue XX% by the Solutions markets. industrial business PSG. for performance million, me the and was Group, color was to Power the starting additional

from automotive, addition million, driven industrial was strength year-over-year. remaining work-from-home high or In benefited increase by graphic automotive computing, primarily of was strong. Strength in in ISG an cards. Intelligent X% with strength and trend $XXX end in Revenue Sensing by the the Group, especially to computing in ISG, ASG and for

is an to numbers $X as million quarter million and year-over-year give the into and of increase the additional GAAP million some your compared reset fringe and an expected. first This quarter-over-quarter compensation quarter quarter normal $XX.X $XXX.X of for expenses me was increase in the XXXX of XXXX year. was first million first $XXX.X of the million, stock-based operating of primarily variable due $XXX.X to increase rates going XXXX. in as expenses for let models. for the you Now, Non-GAAP operating

XXXX. quarter operating to compared GAAP the of X.X% margin as for in X.X% of Our was first the first XXXX quarter

to compared quarter of and higher in as gross XX.X% was revenue margin X.X% the performance. operating largely non-GAAP by Our margin XXXX driven first

Our XX.X money count GAAP in diluted share included portion was our million shares notes. million of the and shares convertible the XXX.X for

million. various non-GAAP share Please with updated on Relations share count our we Our count calculating note share our at have was reference website diluted diluted table XXX.X to you assist Investor prices. an

the XX% equates of during revenue. to intensity was turning revolver. to billion from equivalents So, of we cash million, had and quarter $XXX.X and Cash $X.XX Capital billion on expenditures our $XX which first balance or operations $X.XX was were the X.X%. sheet, of XXXX undrawn capital cash million

DSO days. Inventory are towards fab. and and XXX in at weeks capital currently directing our XX is expenditures inventory Accounts X.X capabilities we portion billion to of $X.X a receivable previously, indicated Fishkill million, to decreased days. XX we weeks million millimeter from of of million to significantly weeks. sequentially of significant was $XX East XXX XX increased our resulting increased Distribution inventory $XXX the below to X XX enabling in days $XXX of days target QX our weeks As

inventory sheet proactively the rather inventory chain. balance debt the to mentioned support needs customer paid to in in down more was I $XXX inventory As quarter. our earlier, distribution million Total we supply the reduced than $X.XX hold billion building we our on and

our press our for guidance quarter, a table the related non-GAAP guidance to quarter our to and results. first is turning provided So, detailing release in second GAAP

key guidance Let second non-GAAP elements our now few the of quarter. a provide me for

mentioned, the be revenue As trends billion macroeconomic the improving remains and Based global we current demand will downturn. $X.XX booking the to anticipate by following steep backlog environment on levels, strong, our and markets in range billion. recovery COVID-XX that of $X.XX driven in

million. We between This margins gross XX.X% $X.X share-based XX.X%. and includes expect of compensation

non-GAAP for expenses quarter. anticipate OIE, million operating be including non-GAAP to is the $XXX total This second million million million be $XX We our quarter. million. expect million $XX share-based to We of the includes of compensation $XXX Capital $XX $XXX $XXX approximately million. interest expected in to to expenditure to expense

XXXX diluted is million the second for of share quarter shares. to expected Our XXX count be non-GAAP

earnings per $X.XX. results the this of range in in So, to non-GAAP $X.XX share

you to opportunities Denise the wrap to seeing Analyst Day teams of am I in With with the we journey. will ahead our to look Q&A. and forward now So on our of to happy about the execution in us all globe that, up, optimistic embark I at transformation I across as for the up August New I over call back open turn York. our am

Operator

you. Bank. Instructions] Seymore first Your Ross Thank [Operator comes Deutsche from question with

is line Your open.

Ross Seymore

Hassane, chain strong I ask limitations either the product rationalization strong the question or total Congrats just that board. results probably had is I the question. Hi, revenues importantly, the demand I more side. the your process guys. Thanks then guess on efforts across and letting and the elsewhere on on supply for wondered any on there me is impact But Obviously, impact side, supply supply the limiting is internally guide. if supply any in of from revenues currently? your going and your how is first

Hassane El-Khoury

Yes. Thanks, Ross.

the to to ability we our ship look, obvious It’s have. is that demand impacting So yes. answer the

we So, not perfect a been any have in constraint did higher revenue could if world. have

on portfolio actually we we where based second especially are we we helping going are on it quarter. on doing However, of these have know kind forward that’s are really when rationalization us. putting not we where utilization. Like the what are to and comes that landing question, but already reviews internal the an as products, good done, be priority it’s we moving because Thad your answer mentioned, are strategic utilization have we this We to industry, impacting to

well Now, the that to and optimization more products our margin maintaining very it’s rationalization, creating within capacity with the that and the we fits products the running high fabs really maintain. and for growth want the

Ross Seymore

of guys. back or to That’s I levels. a either at bit is talk Thad, just to going that of you said but It’s bear The you of to think, perfect segue I that’s forward? time Thad, one good the my take gross obvious you to optimization The about question one, is an little margin follow-up you already. fruit. Hassane some XX% mentioned product drivers see normal assume of going utilization, Hassane to Can a

and simply target what pop, get quarter utilization with of to gross are handle? gross the from showing the second up So, a to is the the margin margin range that steps nice is that again XX% rising kind XX.X% your to before

Hassane El-Khoury

launched a Yes. margin initiative have wide. Look, corporate we gross

So, a there It’s that the really pop to. caused the is that across board. we guided not QX in single margin

laser supply course, the chain. is but on of Of cost focus we it have a optimization within some utilization,

that have have cost those how We customers talking operational about strategically the we some been some we of There efficiencies with is of pass that seen been increases we doing. our and have on.

called that’s higher you I I going better prior up. internal to And see answer We a to as margin but where importantly, harvest to it, forward gross why and or to call that gross of the kind that’s sustainable going course what start better the of product where be that’s mix the the of are mentioned will the we utilization. come shifting that the, lift in clicking margin us shift offloading some going for in get is line, start higher legacy our products more have it with Utilization of is create the time, and will capacity to margin quarter. moving is first more seen over gross the favorable

Ross Seymore

guys. Thanks, Great.

Operator

from Danley Chris next with question comes Citi. Your

open. is line Your

Chris Danley

outlook. strong quarter and add Hey, will thanks my and congrats on guys the I

go So, normal in seasonal you worse? half to a that year? talked would getting the from second little QX a about are you you or quarter this demand better And or then getting have to how like expect we shortages you above do Could of do of sub-seasonal back say expect the the seasonal? easing in

Hassane El-Khoury

Yes.

look, last the that talked has a on the on fast I we I demand and very came So how demand are how been customers would on quickly se, what that the and coming. call velocity the it strong our talking has layered expectation not per how capacity really problem is of really is it with call the been quarter.

velocity. the that’s So,

about the not talk seasonal outlook. healthy demand – weaker and I momentum, So, in towards it talking call or half of am about not remain and or when demand will I demand really better subsiding the second going and a than about year, the and but supply it year I backwards. very end of am the at the talking

being demand. of catch half the the us demand So, is would I happen, we see year. second that’s the But the to of going to towards up to where balancing able the say,

Thad Trent

take for I that’s if midpoint you It’s And guidance QX, this of the for Yes. up our right. is would just add, Chris, Thad. record sequentially. X% the our company,

QX, you in sub-seasonal and that return I As think look high mark, will we to seasonal QX probably QX. coming in into then off be

Chris Danley

Thanks, margins Do for follow-up, margins? that, think going towards total I little you a input out that helpful. guess then any your own do be That’s costs like could versus you lift your how the own Okay. to chance of input everything or do goes material guys. firmer your be on it of and products, as of bit you pricing far raw negates impact to think the pricing costs? up and as And kind my then that the I expect for, between guess,

Hassane El-Khoury

favorable get remain structures margin gross are improvement. sustainable obviously always will that’s me a now That’s talk the you but and are going how are down. that hear And margin those there. is structural we because looking structures we what we for to cost sustainable a environment, small or about gross pricing – and up right favorable It’s our is pricing trajectory, portion in of

all. years. So our your more to to one. in more and size that one, not customers one cases, customers talking price one and strategic covering in to not question with directly, strategic there reset, value there to is is answer cost But to It’s that’s even really to to next where supply, some where on getting basis. important the prevent happening importantly, and from most a us the some thing It’s to we those a really the today, do is term a this, fits both is a supply longer order discrepancy are getting views for we those because X the how on and really over today we customers long-term are is, focus commitment agreements, our That’s is customers the X pricing.

Chris Danley

Thanks, guys. great. Okay,

Operator

of next Bank comes from Your question with Arya America. Vivek

line Your open. is

Vivek Arya

margins for you gross I markets mentioned us number? could But which QX guiding be QX, to that record color be hoping XXX sequentially, in then Thanks curious some also question. you Hassane, but still prior my points basis will Thad end peaks that I could you or mentioned and delta? on importantly, below sales was above taking right causing am – are X% up give what’s below

Hassane El-Khoury

the broad. pretty is So, demand

on. all a you Obviously, not really focus mirrored end are and is strength, about industrial there single so when our is So, going end to industry market and the and our auto that strategic talk and across markets see

that’s So, I the end wouldn’t market a going majority of specific it. to drive say there’s one

Thad Trent

Yes.

I up for are we the has that’s will are we QX driver going was as have we XXXX, the But that ‘XX, historical, X% we peak. of primarily the East been which capital, our balance QX was back margins Fishkill. that in – us higher been talked go improve as well. about making the been two. our the and margins than and has On peak, because ramping you up the primary would some in the investments and about guidance to be the give company to go the of rationalize difference because you believe, of as forward, lower, between our opportunities the those gross footprint to Obviously, that’s compared depreciation the so if right, But that midpoint margin the as

Vivek Arya

what for few is last are competitors. we months better And have than Hassane, you. seen shortage I follow-up, the better to internal issue how had Thank my chip am this in curious, it. does right, withstand that their companies Got capacity, – able

a of reducing So, customers but you. ON few time fab the lead having achieve footprint you footprint? as the responsive lighter you lighter kind next be think Thank time? think a to and how does you of both, to years, customers, over align about responsive being Do fab have for can with goal very still

Hassane El-Khoury

inefficiencies, a highly products products. the just very you really of a And change a do manufacturing am able even end the you we change from we back basis on in the working joined our been per which can the I by It footprint I run fab path obviously, will and portfolio or rationalization the to technology – It of that streamlining have absolutely. really both. run. overall Yes, company. confident a volumes different on set on that for see at are maintain since I and package the doesn’t And technologies while running could achieving a volume easy our pretty will that’s footprint be we removing fab all to get able get going going will more be as as footprint, you are growth. better upside or By out we you And fab, our consolidate, rationalization. to get to both. are of then And utilization, still with existing footprint. restructure within better When even it as to a you back-end the basis. these cost get broad have you streamlining

So get confidently. be both able we are going to to

Thad Trent

as outside. Yes. about it’s being And right, going talk Vivek, just we necessarily to not fab lighter, clarify,

and necessarily fabs outside. volume it But with will something subscale the also shifting run a that to doing will same still fabs from isn’t throughput as long our as and inside the in to those in higher at fab. then reduce looking be We It those just footprint.

Vivek Arya

Got you. it. Thank

Operator

with question Needham next Gill Company. Raji comes from Your &

Your line is open.

Raji Gill

sheet, in of in the of you Thad, in through just supply inventory you talking are kind order the while are kind you and in Maybe build decision the year, of us And Yes. give Thank distribution could are a this you momentum. question on of demand-supply good kind of balance and rebalancing simultaneously us the the inventory when walk to on kind decision? congrats can reducing kind rationale that later about of channel. some on now that to are relative the balance terms you of right thoughts to demand demand? the steps increase what we And taking where decelerating? starting more combination is supply you. level just demand? decelerating is Thank that Is demand then or is it is the to meet to where get of and

Hassane El-Khoury

Sure.

lost I first of track think I the question.

Thad Trent

is question balance first – the on The sheet. sorry on the balance

Hassane El-Khoury

Yes. Yes.

Okay, let address so that, me sorry.

obviously, So, running about the last we decision, quarter. weeks XX made were we at of inventory

channel. Our range inventory weeks. in X.X of is make supporting it dropped shelves to weeks it of target distributors to on sitting XX the customers. versus is The the to doesn’t We sense inventories XX weeks there have logic the

are by through that time our right sheet, or the the to to right we having directly, for ensure support in products can the we versus holding So, the customers on it extended channel balance weeks. us allows the just the allocating but sit customers at either channel it

decision basically customer a it So, support. was for proactive

Thad Trent

mean, question to I demand. I your going was No, second about tackle

streamlining So changing our coming mix things of lot of a literally strategy. we Not going expenditure, capital there initiatives on. our from operations, that it’s the part have we a done earlier have through for our streamlining have and mentioned that few the about but online. the perspective, work supply One is more footprint, are that we really the demand I through

able level, demand get in very wafers. demand help which been those supply, wafers, is a stable, why going to latency to am demand we at build steady-state about velocity, are way the that but our start is increase of for as demand the wafers for of we the visibility the stronger, in stabilizing. going the get am getting about by start more on demand supply are before that’s we us gets the get subside, I in that’s What’s will they have the came demand outlook to what talking a we to we are we which But that. So, the backwards, the happening constraint. remains order that the healthy demand means signal, out, I also and then velocity talking not start kind But more

start that We the are and will of us the to balanced picture. demand, and that year on get material demand end able for supply a towards

Raji Gill

market, stated. are with you the for revenue, kind electric the do we you you you throughout what year as talk Can SAR so in done progress record And are follow-up, my had the terms in automotive of production, your seeing to that way terms about automotive And production? component more then in and about still we in as of shortages we of have industry Do think do impacting we silicon And the kind of carbide how go? think vehicles? the we how about momentum overall industry? kind of

Hassane El-Khoury

Yes.

remain strong. cars there know the to whether or rental across an anybody going There anywhere, buy car a board. inventory or I cars inventory automotive not industry, don’t it’s is is is low no when to as think but try cars. new used I lately,

the unfortunately, automotive demand change is doesn’t where happened of in the renaissance the also that have I of strongest have to And we impact that on we reduced production industry. where some fire pockets seen. ad OEMs do issues the that So, an that’s strength But Like supply. picture overall to have because going we of the that one hoc the have do be. obviously, are being has in the going seeing. years the some fab, fuel the for And

remains keep momentum story. a Obviously, content strong. we very talking Our about

more that moving engaged part on that, our are story from silicon it’s very on So, am also is, to am we the And itself, and also electrification that. are vehicles customers are includes be area, just fuel the because are online, and to and with carbide but But in or us. and have growth for I carbide platform a silicon engaged like about initiatives the more grow infrastructure, margin. to are closely as that’s charging. EVs our the more going strategy what wins see on to our just those this for and content get I the great I our personally whether as need year, although them, going charging an part we of of that’s going the And design also back carbide. revenue importantly, company. here growth industrial we we of fuel vehicle That’s And engaged our our infrastructure close that trajectory, to to watching the very the road, on are with infrastructure charge we to not going silicon not onboard forward. with that’s we

Raji Gill

I you. Thank appreciate it.

Operator

Toshiya Your Hari from next question Goldman Sachs. with comes

line is Your open.

Toshiya Hari

I Hassane, being comment about come potentially revenue back to to wanted QX your sub-seasonal.

strong and down of low, image You and got pretty chain sensors markets. talked on have your and channel, idiosyncratic demand growth key and drivers Inventory about the including so supply you seems your and distis forth. so very across in up power

understand So QX I got would be to am better quick the follow-up. just why given a And trying I sub-seasonal then have backdrop?

Hassane El-Khoury

X% Yes. QX, are to sub-seasonal, to up X% have you usually quarter of off coming to which is a is up we I typically QX X% talk But mean, about if in X%. you down. remember, X%

maximizing year, you bit meet talk can. just So, the about we seasonality, out in we are demand looking when a little that this is supply to window. can the we for maximum What throw our order

So, strong. demand remains

with a QX, a second sub-seasonal even a sequential X% coming QX quarter still off growth. if of we So, that’s healthy talk very about

Toshiya Hari

Okay.

So, is that supply than is bigger from issue QX? fair QX in a statement it or a Is in no? your standpoint,

Hassane El-Khoury

it’s say bigger. No. I wouldn’t

are I constraints think going be we still navigating same supply see. that the we to

Toshiya Hari

prior then us on you was Belgium update dollars think fab there? potential I that know you of potential as have case? are you give would each update Okay. Does but mentioned XXs on follow-up, I you give Niigata. a counterparties, I the Thank calls, Got of XXs, hoping could with to you. be and in conversations And cost And sale millions savings? any it. continue an quick in

Hassane El-Khoury

where are. soon nothing But to sure have we status will new where exactly as anything, we is mean, I Yes. public. we becomes that make we Obviously, conclude the you stated as report.

Toshiya Hari

Thank you.

Operator

from Vijay question comes Your Mizuho. with next Rakesh

open. is line Your

Vijay Rakesh

of the out box. guide and quarter Great guys. Hi,

side. Just the on a question automotive

see Any You to And side, Obviously, mentioned of ‘XX, what that Thanks. silicon as growing carbide. And your see auto you a continues how in on is revenues that there? thoughts you it percentage? grow. ‘XX? the on that percent how EV

Hassane El-Khoury

content stay. break We going both far as carbide silicon at from growing. on the customers design next, as But are on the that. it crossover just now, And with focus to X silicon all to technology and been years able wins track. its right in to more IGBT be that. carbide continue to We specifically. I growing to sees electrification, don’t years, for that’s And penetration going think as grow. in up we IGBT going be as we layering our our it, X the is way to us our do over call are it’s look It’s order to

Vijay Rakesh

next look on year Got it. idea some And some how us XXX-millimeter products you as ramping utilizations as Thanks. where out as year, the of are you side, this give into XXX-millimeter you well? move expect you that, do you can

Hassane El-Khoury

I everybody don’t mean move take of we we track until are the remind this, to just but in to fab XXXX. ownership Yes. on

to we So, that fab, of focus ownership but until our when then fab, all it want that an take outside to we it sure with not internally products to as so but our qualified is in there just able planned. are there, we qualified of our ramp make be remains running is customers,

Vijay Rakesh

it. Got Thanks.

Operator

from Your Securities. Craig Ellis with next B. question Riley comes

open. Your line is

Craig Ellis

strategic the on taking The to those long-term as has Thanks years agreements accelerate Hassane, couple a on longer wanted have company to agreements some as would XX company in actually could looking term to for? use the look as over Congratulations or mean, would the that talked that on I are points And leave relative working so X could industry has you the long-term one much it. example, what you far. mentioned been X with premium progress question, percentage the And start Yes. I for that the agreements question you that a versus about years, with those you example, really auto for be sales long-term growth unchanged growth work of XXXX? years auto, think to next those we some customers. how question could out of in your larger be what percent is of guys.

Hassane El-Khoury

you Yes. I pretty growth to when them compare wouldn’t the say change over SAR targets it years. few are our our growth will aggressive target the numbers because next

very am I So, comfortable with those.

from silicon question, expected. carbide of faster Now us accelerates prior if higher the then than that’s for course, going than think, we what to growth we be

a what growth. that’s and some why have are puts the takes growth the well there provided on trajectory. balanced is we growth pretty And So,

outlook the as I them more As far look as agreements, long-term at confidence.

And the or made able with from out agreement areas the us to to over their side, are building the years we to capacity. investments sure few build sure engaged comes spare the few with we that strategic the growth. over to And right If are to to are products the X-way able the in you domain. for to give investment be capacity order a make want. want be the that potentially long-term make next that where we made visibility We customers sure we demands the are customers where the years, look we for next is and we met. And want in see shift us make into the

for win-win our strategic customers. So, it’s a

a have will We in demand they XXXX sure of commit occur what that outward-looking them order signal with to. not And working and make that been experienced a steady does again. in comes with only to we that lot

Craig Ellis

you lot And that. makes the of is That for follow-up then a sense.

in business? to and a the noted Q&A, communications mix prepared company in in mentioned the I out. we question of in year-on-year the is, see in sometime we XX% in that times are So, business, first would for example, number that Is when commentary that down you. The the starting impact Thank the will more XXXX? see or that quarter, XXXX was later distant be peak strategic

Hassane El-Khoury

Yes.

coming financials point. go through review we really those strategic see to it’s too our our at this through early results process, As

will the numbers. XXXX, revenue hitting that see probably shifting in much out further think I you

at look strategic basis. Obviously, more short-term wouldn’t markets to I we wouldn’t So, this that us, quarter and are auto be focused read as being industrial on a the strategic into of but will on. indicative I that

Craig Ellis

you. Good luck. Thank

Operator

Rolland from question next Susquehanna. Your with comes Christopher

Your line is open.

Christopher Rolland

for some in that you Can some about rumors tightness out question. any been supply there market supply are specifically? There Thanks modules? there about are there. for have guys. the that those or CMOS talk image specifically Thanks. the Hi, guys anywhere you you And constraints chain sensor guys seeing, whether

Hassane El-Khoury

answer sensing. well, it all that is – foundry sure, we The our situation. it – image yes. it market. tightness and the the see at is know the for of strategy of have or us, foundry all for hinting But is Part most been during applies short I is in of to We there allocation call discussing

Christopher Rolland

then East just perhaps discussion as tying And well, Great. into about a that Fishkill.

fab? billion-plus when have So $X that? additional you XXXX, And kind other accelerated But are to there Is have re-qualifications that or of that supply You you this there? of capacity talked fabs meaningfully there, tightness this fabs. the has seen some you guys able about get can that’s chain we revenue. from before to ramp then touch qualifications that out

of fab you And put the do in terms in that together, utilizations, XXXX in to this Thanks. billion guys this you all position? better plus ramping when you that revenue? I in are see So going of to guess, $X pieces position? where putting guys Has terms where you be a get

Hassane El-Khoury

Yes. we have still Look, on. a few years

we at moving. that are looked have the We products

to talking I priority rationalization. we reprioritized the products, are strategic make part sure have have products in been portfolio order that of the are about, growth with the the higher We products moving

We quals, There of of can not going test we to or a those, given how are can demand to course, the make in try maximum to that quals qualify. all you of you pass. can fab parallel that know, fast at is hours we to when takes it we are the ownership to do have you all sure time XXXX, to to with we have those utilization we So hours hard accelerate. as are customer have. the number that it lot of above take we how of quals, and do product the doing and get it time But of has work, x

with navigate the we course, we maintain constraints, short-term, the of operates supply that foundry. as a relationship global like close outside far fab, foundries and with any just As we do the

Christopher Rolland

Thanks Hassane.

Operator

next question Caso Raymond with Chris comes Your James. from

line Your is open.

Chris Caso

morning. Good you. Thank

that’s QX? first as go having margin production be year. would obviously question look that as And production through significantly now catch and we What on benefit plan ramping a the it does is to pretty The like utilization up we I imply bit second sounds the about now. you like margins the go or supply, as gross into a that potentially flattening into with to go you that we for guess, and half down does mean the second year? of go the out – revenue comes Does half as what

Hassane El-Khoury

Yes.

last mentioned, at quarter. I currently It is As utilization mid-XXs XX%. was

projections are As think it’s in level year, backlog. through the remainder the we we look in of right seeing based stay on the the we going to that

So, second balanced right. balance, level, this the at back about into when coming we half talk it’s really

to drop much utilizations don’t the expect we the So, through the remainder of year.

Chris Caso

Alright.

the what the will still So supply Do have the expecting year, higher-margin as the the as opportunity expect prioritize given still of the second therefore, and you tight through have just half? go peers of mix said through to about some you you benefit get follow-on a your improve some that, year. a as you go mixed to products through

Hassane El-Khoury

absolutely. go fabs tailwind mean optimize margin, Yes, tailwind. to and we on some us – favorable rest additional already have that’s of doing started hope And gross will and get the more through give we I the we mix the that. year, as those that

optimizing the really utilization, the fabs we that increase what of about throughput. the about next going what’s about, optimizing those phase isn’t footprint the is it’s that’s and margin gross to right, through talked So, all

Chris Caso

Very helpful. Thank Yes. you.

Operator

your Cowen. And from Matt next question Ramsay comes with

line open. is Your

Matt Ramsay

and to have rationalizing thought you extreme came company Hassane, or together. manufacturing, you. when don’t the the me back started the you guys seems you about if putting when joining modernizing I tightness the you about footprint company, the across plan into the of X-inch – know thinking industry and X-inch like about think the as you morning. when think as to you Good Thank were it would

that about a on X-inch the across industry reflect aperture new there the a bit. think as has for X-inch strategic or of might persisting given the tightness period Are it, and of variables the you tightness if broadened wonder I likelihood and Thanks. for options longer anything little So, sort of time? you

Hassane El-Khoury

effective versus is or base how scale revisit example, No, those X-inch, re-look X-inch from and as the I the hasn’t changed, you are not an to or matter the that or line obviously, is had consolidating where in tightness we can it it our it we is we tell moving fact assumptions. fabs to look driving, will they example. that for the And at at X-inch run from, because X-inch

we is at consolidate, manufacturing basically So, what to drive footprint, which to our we we we in. run change those keep all lower fabs doesn’t do, products we cost we and and spread fully scale cost across a streamline fabs need our that as be will that to we need need it need utilized, can all to have that

I is But started. than of more first as fabs will decide So, bring it the potentially doesn’t concerned. market when far just of did they change we the in they these valuation as those assets, divest any to when

Matt Ramsay

makes Fair enough. sense. That

guess, the out guys GPUs. Maybe mix? follow-up, those products seems those richer And sustaining And you could from driving my called It and talk through be some the the guys also the are script, mentioned are you, fairly balance you particular end like strength of strength from of computing big planning about in would markets. that how those products into at you upside? high-margin the markets year? are those on Thanks. As you prepared I for specifically those

Hassane El-Khoury

Yes.

these focus product in Our – segments. on

big are a First segments revenue. our those not of of all, percent

them, lot have our auto GPU are a have to the bring cars and offering we these we value growth. which in and industrial product adjacent would they that of very, where on, However, in power seen so some call I

just our growth growth, that of but markets. able are and we support reiterate, to support will to part have supported strategic are able I are customers, we fully So, which our automotive once we that industrial

Operator

Rosenblatt comes with next question And your Securities. Cassidy Kevin Okay. from

Your line is open.

Kevin Cassidy

and the results. great you congratulations Thank on

was some of $XX change to in CapEx guidance, just $XX at happening? timing guess, Your to delivery came million million due guidance that’s other or $XXX the equipment lower there spending I is than, that Was million.

Hassane El-Khoury

timing No, payments, of the that’s the cash right. just

So, you range being about X% long-term. that think in it can still

just this it in lower a at point. be to quarter on but happened This no strategy change basis, cash

Kevin Cassidy

percentage can maybe what that X of much say And towards the inch? XXX-millimeter Okay. for how you goes and

Hassane El-Khoury

towards I don’t the have of is I breakout, that would but the going majority today. XXX-millimeter say the

Kevin Cassidy

Okay.

what so times still there find I guess, – And is Or is used lead you the can equipment? equipment? X-inch for

Hassane El-Khoury

CapEx or Yes. Well, back investment, streamlining, our in in removing investment some mentioned, bottlenecks I the the fab. yes, because is what X-inch maintenance upgrade really to or

of to to So move we’re in not a any some from the order to And are own one we consolidate one remove physical bottlenecks looking have the some specific and as that at purchasing to streamline equipment. from the you within fab. next location, flexibility to lines heavy the spot from a our spot equipment own

achieve So haven’t we have. aim or in trajectory in X-inch X the we fab to any hit what roadblocks we

Kevin Cassidy

great. Okay, for clarifying. Thanks

Operator

Your of next comes from John question Suisse. Credit Pitzer

open. is line Your

John Pitzer

as And use can And little a we tactical ask a you that try comment Yes. thanks would curious if taking think much cash, inventory me kind inventory aren’t inventory the your to I’m end letting To relative be make Again, be about is questions. about to on little customers of results. extent to bit Congratulations more strong strategy. extent the cash for great? strategy? what on use on what to structural? what And how you Hassane, sure inventory on customer your think this might of of building inventory? we should this more think

Hassane El-Khoury

at inventory say, we to to order And strong direct discretion, of at through our support it coming customers I order. the them distributor their hold it directly, and to their strong move is and Yes. our from fulfill and portfolio conversations demand better would say, strategic either their back signals would to or have John, we direction able need backlog in that rationalization, When customer us. is put to how us move ship I direct and for have our we than it tactical. based where the have regardless inventory on distribution, or to with engagement it’s those us being

perspective, how a a able we tactical are approach us. support we believe just we quarter So that that is talked had about. purely for from it well to that And We great to very worked it.

We all have That a is tactic. That’s great a part of outlook. it.

and stage that velocity get match about far the our inventory finished as as to goods. the longer on And a are Now or the because How to internally, in and and products rationalization it’s die our finished products is going in allocation and term, do again, change in has footprint, stage goods going our at management. be going both which do really depend obviously, to products we’re how rationalizing that’s channel and start bank the efficiency drive you able either to internal to inventory for you we external. to of talking capital our from manufacturing management,

the For same. a by me, It it’s is on needs customer board. to inventory monetized that be getting

Thad Trent

And to John, to increase. wouldn’t on cash, inventory balance the the inventory expect the increase I sheet

on it longer the term, it come is to call short-term further. level will it, the inventory about managing this but basis. you in this a into for as right back over increase think the I balance, tactical looking move We not tactical, think we’re

John Pitzer

of And do strength more neither move going rationalization things. different go about what you the not part That’s and periods it’s portfolio not the socked to that you to of now? is markets hard your of isn’t price that of doing kind they’re kind what’s market portfolio that that more my the then Are why serves big helpful. right now. correct, in why supporting these a memory why portfolio is, guess, and market, quickly? aren’t you And two, a back about happening if the customers? reason if and just sense is used One, And Hassane, rationalization? NOR surprised more out that I think without in me the customers aggressively. I Or for was historically two bit follow-up, pricing little did of I on

Hassane El-Khoury

me put this let Well, it way.

it. It quickly, pieces is to of lot that. We there’s but are doing a happening

to shipping also end remember, through of the have the year as on and strategic I’m also But on can’t far the want. else to supply, you that the Because the tightness the difference product we one boat happening customer in get customer portfolio build going not portfolio have if is with we not that they’re and rationalization. as thing when it reasons of I products I’m are. the you that it, get with because It’s out an going have more have do have that to about said, towards an There to we before impact have market in some it’ll pricing QX, accepted starting are that there price about going of opportunities to supporting the that and we them. going But support. going think impact help you we’re actions because backlog like impact, is the not in that If we’re QX all is it’s that to QX talk and QX. to you not as be because is doing, quickly, somewhere to from

So there’s production to to sure make we able have we’re that’s and going, some still the make. that’s trade-off

John Pitzer

Thanks helpful. you. Thank

Operator

from question Sandler. Piper next comes Your with Kumar Harsh

Your line is open.

Harsh Kumar

Hey guys.

know a of two had If is silicon first a I in on questions. Hassane, your in of carbide for and automotive power congratulations cars First what view focus all, I for I position one ON’s guide. ask had is you, very to strong asked you, but I I needs I’m what say, want that to to curious I’m that curious be, done if you you you where today? market think you to slot? top-tier get are And know would products? you today your number be with one, where to area.

Hassane El-Khoury

Sure.

place, good a only it’s it’s than in I getting better. better was very are We – it today, and started. first when It’s

– of play the products one, at kind is become focus don’t strategy, sure better, to and anything sustain and segments pick to looking order we use of at. your we vector, and silicon next term going when in silicon get able So that that’s and course, over be for that’s we investment work or that carbide going an a to we of leadership that be with which, get that’s number for have How make a That’s to the the a been years have. us win that it it order that the and that to X, carbide technology looking But in we’re to dabble. we our focus investments to else other X position. the it in to to we’re and lot work

Harsh Kumar

so. I Great, cost side. Thad, the for one, to and ask about you And next just the wanted

getting on, So would of as the you you guys costs? you you done initiatives of look has where sort Or you hard are underway cost done some sort the have to are started and that that the could work of in you started? and have at where cutting say of process close would characterize

Hassane El-Khoury

things. Yes. but long another is benefit if use so. can way, implement we can is is results It’s implemented, and how easy not of. We takes one quarter it I hard easy, and for the hard. The two not or the going categories, it’s get the easy two see to it’s to implement One one implement,

been of Obviously, is seen call, already these it? benefit answer all fruit that in what initiated. question we of of have I no. parallel. anything The We’re has the The is, is, launched all doing low-hanging and

easy the not lot a of we’ve in – benefits I reap really at done the it’s we look it them or hard launched as So implementation. get What timing or is of QX. have to

my benefits but back favorable, those that remarks, You’re prepared see importantly, they And in starting to QX. are obviously sustainable. more me, to are to benefit

they’re And – trajectory gross things cumulative for. we that’s a we’ve that benefit, effect we on established it’s ourselves of cumulative showing kind as are as So start what already a the margin up these set the baseline.

Harsh Kumar

you. Thank

Operator

Sur line of from the JPMorgan. comes Harlan question next Your with

Your open. line is

Harlan Sur

make the up business Great ISG morning. about a Good execution. up markets quarterly auto sequentially The and it revenues. sequentially, ISG and year-over-year. two was And XX% combined majority believe was down are on X% job up of year-over-year. industrial these X% I end X%

reflect capacity be appear year? by guys to foundry your So foundry you talked in overall fourth largest about. quarter Similar that demand constraints ISG guys expect your to the do on the to the that more does this capacity with you delta business, of line

Hassane El-Khoury

XXX% So by ISG constrained is revenue specifically, supply. obviously, the

balance a ADAS the That’s supply through one supply little market that half business one-to-one XXXX. and with is of remain of and that a the out between will everything. And will remain the given growth that in demand, constraint. probably the first that bit So

that that’s advanced our or very closely with we’re a ship. partners more the with they common get the microcontrollers how working foundry And obviously, We’re we to a do of customers capacity nodes bit capacity, lot have path first the capacity. to we’ve little to quarter. that get negotiated going the more We have second That’s be half the capacity able in more a year. for to of because

that to to closer but some So that’s it. resolve it not of get course, it’s going gap, going was of alleviate will it, – but to it not us

Harlan Sur

products. a continue there. already bit a to you then potential the higher sub-seasonal, on a for I mean would QX No, to expect insights margin gross seem of focus to higher. I be gross the mix would revenues be, assume despite executing that And the margins appreciate I to maybe team to move

should we seasonal, move to So the might half expect second to higher the be of we while continue margins year? QX through as revenues move gross

Thad Trent

Yes, Harlan, this Thad. is

to to benefit gross the the balance, of continue This as but we’ve of and the expect of continue back fabs, revenue is also in The year. cost to the expect We expect things through gross talked accelerate. yes, lot the the margins about, mix. do structure utilization from it’s remainder expand to cost coming is into margins we the we a even whether the initiatives,

Harlan Sur

Thank Great Yes. job. you.

Operator

with Mark from comes question next Your Lipacis Jefferies.

open. Your line is

Mark Lipacis

than cycle a more you OEMs need. contract time, order this and question. they lot Hassane, of components of thanks taking is for part at the Hi, what get happens manufacturers my

what for building it, the capacity, that and see then adds time call stock. to some declines ordering, shrink safety requirement double that call people safety and Some the And semiconductor lead industry stock quarter happens inventory, then cancellations. companies

different if So the portfolio? can had Thanks. to a way ON’s this is here ones? cycle manufacturing your are insulated figure I I’m you’re to listen from retool in future trying for And And this questions follow-up. operations, how than other all out I to be you’re cycle this some as – the dynamic planning

Hassane El-Khoury

Yes.

distance coming if that into to all ‘XX that – that the more think or the from set that you us to talked to about about, of ‘XX expecting. So of a happened any we’ve that be say cycle lot is commentary up in thing of order in as is out It’s same you ‘XX.

inventory signals. than holding versus that our more So true what does the and demand it the on to response double that about clearer the direct much putting gives in on us our because quick put balance to orders a disti. sheet the rather harder through book It’s channel

X, I Tier the they’re few but that. with When the gives that that directly. not not because the and in an just better got no have guarantee on there’s lines Nobody in the days ordering you down. is visibility, double has shelf So a us OEMs going causing down getting an those parts, engagement, with products you, much OEM lines OEM

when the is we the when it is So more – we what Again, look in that’s it inventory signal hold than another channel. that responsive at.

in about changing impact as far some bottleneck end adding more very not or get investing why but out, demand or long-term I whether adding as we’re that depreciation. we’re that the that want manufacturing, our the is high utilization that’s to change removing tester said, it’s in will loading bottlenecks XX a the that plus. to the rationale to manufacturing cautious that order portfolio add really light in up mix us product one capacity specifically, CapEx our so footprint, outlook we with just versus support As to It order in machine in throughput very investment not we maintain

I will us, it what So is I letting comment But tell much who can’t these, they you cycle that what would on like. more make just us knows the ride. all it of will immune whether shield look because than

Mark Lipacis

their inventory plan own hearing right you’re inventory these last And inventories if just-in-time and to your you of then even volition Very sheet? And take have balance semiconductor those companies I increase own desire approach be as OEMs and built are on processes I’m to on year. your wondering customers The from that your days the doing to better own that helpful. Thanks. abandon a follow-up. now seem that other

Hassane El-Khoury

will decision not them, to their it’s denial. And wouldn’t upside. common strength not who error but next want to decision in in done, has will some about to It’s we’re across the find demand for the Yes. make it pushing are make. to the they or going this you, slight I the for have and or sustainable. keep the customers. But manage still make I they themselves – own say they Unfortunately, is We customers to inventory. even is how us, with tell just turn it There in after are And can working a demand decision board. be are just-in-time everybody going

For to thing be the with are those I ones their demand healthy a profitable, confident in between to of it a meet order part difference me, my of confident strategic investment the business long-term more customer, of is all that customer we they is the it’s customer run the focus to a a where has in is part our with. the And been. past. and that. but going That’s be productive engagement short-term non-strategic to of signal, that’s going and and focus in think, a that, a where are agreements. able The predictable importantly, And I’m cancellation,

it it. it, And strategic of our start American and so well. expanding I’m European We’ve customers have or with will just for North that, replenished. it, they hoping customers And inventory will inventory I when some us, which with the work BCP, have them my it it, on where lives, we have what a they inventory have done with includes lot some in more Japanese but as Now they a to, we’ll done to look will sure visibility who it’s with plan, customers past of that we months hold continuity we I’ve done X that business make where at order for customers. us call

Mark Lipacis

sense. That makes lot of Very Thanks, helpful. Hassane.

Operator

with from William comes question Truist next Securities. Your Stein

open. is line Your

William Stein

relatively at opportunity at bit my two the more, in and Thank that let’s and little around about analysis terms I and about you’ve talked that specialized so very past, this balance straightforward. between what parts in by you have parts just think more in on to or And have of split questions might not prior been idea commoditized nature. going say, maybe It’s like responses your you outlook. understand this versus had better ones categories? somewhat look it’s that to And taking not those strong products unique today us particular, wondering margins, complete a forward I’m a congratulations looking and, split help Hassane, in the are end we’ve if the you’re the between look a of market.

Hassane El-Khoury

opportunities answer is, at it. of had your yes, lot to I have look the to question So a

us We’re manufacture review, in up where plans what because margin, very kind on almost cost. have call a of ability I the it, and strategic reviews. stages our a X the week-long wrapping But to aggressive to not the you of for you at strategic and the margin true last it is just look said have

a that is our as manufacturing low-margin today have valued at targeting impact can in product structures through is You efficiently we because footprint. it the automotive. far running cost as product. is not It a are margin And

to and those an products. the consolidating going to rationalizing by that’s uplift give manufacturing, specific So

order of I a going rush the products and be the have keep the to assessments. say have going Analyst move in be make But away? to from product, are cost bucket much then into product a point, we that’s cost decision at I give have Day. ready right on or just part work. is And away able work here preview that’s the sure part wanted those finalizing we kill that to this So low margin, the we can’t to of strategic we before how as of do to going get we which it, Or the the for you it mindset fix to be of us I I fall review. act for I benchmark and and a in do you make that I that tell

William Stein

asset of doesn’t fall significant that? the the or lines, something action size today, sort a be of of be or I letting might or split appreciate that. And it it, through action over quantified just the in same that a to time that JV a big think more something pricing income market and enough the not like you along yourself terms letting a strategic getting off maybe follow-up look statement take size could out the a monetizing like of like do

Hassane El-Khoury

– and disposition if categories, once mean and you a assets I about harvest categories. growth absolutely. core think your Yes, you have you

be look supports it. manufacturing – EO-eling site We have or side how yourself of down one at or out to [ph] But what disposition of the the products shutting are going we monetizing that looking do assets do and we the we’re Pricing on a flow market best exiting table those assets. is to balancing company as is, is out, that the as the course, to All manufacturing something for options of at. and and the we’re far thing cash that going balancing footprint.

Operator

Okay. Thanks guys.

Operator

the This call over and today’s now like session turn El-Khoury, I’d CEO. President for concludes Hassane call. to back the to Q&A

Hassane El-Khoury

thank look X. us you for we has current Analyst on Thank August our We I our like up results. transformation, already Thank as to our today. market execution and stepping Day our started the help for teams joining drive on which focused conditions, delivering you at worldwide to I’d to favorable you. navigate all remain seeing forward all

Operator

conference today’s concludes call. This

disconnect. now may You

ON Semiconductor (ON) 3 May 212021 Q1 Earnings call transcript