Release Date: February 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide insights on the expected contraction in the mobile market, particularly regarding Android and Apple customers? A: Russell Ellwanger, CEO: We don't foresee any reduction in our supply to Apple. However, for Android, particularly in Asia, forecasts are down, though not significantly. We expect a reduction in the RF mobile business in the upper teens percentage-wise, but we anticipate growth in high-end 300mm activities this year.
Q: Could you elaborate on the margin contraction this quarter and its impact for the rest of the year? A: Oren Shirazi, CFO: We don't expect additional headwinds for the rest of the year. The Q4 2024 results already include all headwinds, and we anticipate a 50% incremental margin model moving forward. The difference in expected gross margin was mainly due to these headwinds.
Q: What segments do you expect to perform above or below seasonality in Q1 2025? A: Russell Ellwanger, CEO: SiGe and SiPho are expected to perform above seasonality. Mixed signal and power segments are stable, while CIS is slightly stronger. The biggest seasonality impact is within the mobile segment.
Q: Can you provide more details on the growth expectations for the RF infrastructure business and the role of silicon photonics (SiPho)? A: Russell Ellwanger, CEO: SiPho started gaining market share at 400G and 800G, with benefits extending to 100G. The growth in RF infrastructure is expected to continue, driven by demand for advanced components in data centers. SiPho's market entry at higher speeds is a significant growth driver.
Q: How do you expect the shift from 200mm to 300mm wafers to impact your business model? A: Russell Ellwanger, CEO: The shift to 300mm wafers results in higher selling prices and substrate costs, with similar margin impacts but higher revenue. The integration of advanced components at 300mm can drive higher incremental margins, aligning with our $2.7 billion revenue model.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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