Vineet Nargolwala: Yes. So, Mark, it’s a great question. And frankly, I would tell you that most of my peers in the industry are really trying to get their arms around this. So the way to think about it for us is this, our auto customers, especially the Tier 1s and the CMs, are very comfortable operating at four to six weeks. That’s been their normal mode. The OEMs believe that’s a little under cook, so they would like them to hold a little bit more. So I think we get back into balance here over the next couple of quarters. Our distribution channel, which largely sells industrial and consumer and a little bit of auto in Asia, is very comfortable in the 10 to 12-week range. And we know that because of lower industrial demand and a little bit of over-ordering, I would say, in industrial and consumer, that is definitely higher than the 10 to 12 weeks.
And so, we think that they will come back into balance year, through the year and really the industrial demand needs to pick up in order for that inventory to start — the POS to start flowing again. We’re seeing some green shoots to be honest in our POS, but a couple of months don’t make a trend. But we are optimistic that this will start to form a true demand pattern. I think coming back to the question you raised, are we going to be ready for the up cycle? I think that’s what you were hinting at. Our ability to work very closely with our supply chain, the process improvements, the cycle time improvements we’ve made internally, the bank build we’ve done, the geographical resilience we’ve built into our supply chain. We’ve actually gone from a monolithic supply chain to a pretty diversified supply chain in the last 18 months.
So, I’m really proud of what the team has done there, and that sets us up really well to respond to any snapback in demand here in the near-term.
Mark Lipacis: Very helpful. Thank you, Vineet.
Vineet Nargolwala: Thanks Mark.
Operator: Thank you for your question. Please standby for our next question. Our next question comes from the line of Thomas O’Malley of Barclays. Your line is now open.
Unidentified Analyst: Hey, guys. Thank you. This is Kyle Lucian [ph] on for Tom O’Malley. Thank you for taking my question. So I was kind of wondering for the June decline, how much of that would you attribute to volume versus pricing support?
Vineet Nargolwala: It’s mostly volume.
Unidentified Analyst: Mostly volume. All right. Thank you. And then for my follow-up, you characterized industrial as approving later this calendar year. Can you give an idea of kind of the shape of that recovery? Like would you extract strong growth off the bottom as we’ve typically seen in prior cycles? Or do you expect just modest improvement initially?
Vineet Nargolwala: It’s hard to tell Kyle. At this point, we are very targeted in our exposure to industrial markets. So it’s very focused on clean energy, including data centers, EV charging, industrial automation. And we see some really good design win momentum there. And certainly, there’s a lot of regulations and government investment and incentives that are driving momentum in those markets. We are — we feel reasonably confident that as the inventory position starts to work down, those industrial markets will get back to growth in a meaningful way. It’s hard to call the timing though. But we’ve been sort of in this inventory correction mode for a few quarters now. We expect it to continue for another couple, optimistic here that in the second half of our fiscal 2025 we should start to see the industrial markets come back to growth.
Unidentified Analyst: Awesome. Thank you.
Operator: Thank you for your question. I am showing no further questions at this time. I would now like to turn the call back over to Jalene Hoover for closing remarks.
Jalene Hoover: Thank you, Crystal. We appreciate you taking the time to join us this morning. This concludes this morning’s conference call.
