Stephen Chang: Sure. Pricing is always ongoing and it’s always up to where we are in the balance of supply versus demand in the overall global economy. So certain customers will negotiate every quarter. Certain ones we can negotiate once for the whole year but it really just depends on how the overall industry is faring. In terms of competition, it’s really good to see again the resumption of some of the high performance sockets and that kind of gives us a lot more room in terms of leverage in the face of competition. There’s basically less competition for our high performance products. So that helps to kind of normalize the situation. I would say competition, local competition is fierce. So when we engage with them, we also have to be aggressive as well which we are but they’re not also — they’re not everywhere. And we will adjust our pricing based on where we need to be to be competitive.
Jeremy Kwan: Great. And maybe if we could just look at China again with the JV there. Can you tell us what insight you may have in terms of your — I guess, your — how much capacity you have at the JV available to you? Maybe talk about some of your — the pricing trends that you’re seeing from them? Any insight you can offer would be very helpful and also funding requirement.
Yifan Liang: Okay, sure. JV they have already ramped up their production a year — a couple of years ago. So right now, they’re in the process of raising additional funds to further expand their capacity. They — on the EBITDA level, they already achieved breakeven. So even though in the September quarter, we recorded our portion of their June quarter’s loss. But on the cash side, right now, they are self-funded. In terms of capacity, yes, we still have same capacity as before, so nothing changed there.
Jeremy Kwan: Got it. And I guess if we could look at your CapEx, I know you guided for $10 million to $15 million for the December quarter. Can you — I think this is most of your enhanced, I guess, CapEx funding that you talked about, about a year ago. Can you just give us a quick update where we are in that process? How much more do you still have left and maybe even what guidance you can offer for fiscal ’25?
Yifan Liang: Okay, sure. I mean CapEx-wise, I mean, right now, I would — as we were in a normal CapEx spending period and then I mean normally, we would target 6% to 8% of our revenue. Our Oregon fab expansion had completed. So right now, not a whole lot of CapEx payment remaining. So right now, we don’t have major project for any factory expansions at this point.
Jeremy Kwan: Great. And just one last question. The licensing revenue, it’s nice to see that come in pretty steadily here. How much — can you give us like — how much is baked into the guidance for the December quarter? And also, if you could help walk us through the impact on gross margin? Is there engineering costs associated with the license revenue? And how that just kind of flows through the financial scheme, that would be great.
Yifan Liang: Okay, sure. Listen, revenue recognition for the licensing and engineering service is more — depends on the actual engineering hours our teams spend versus expected total hours for this 24-month period. So it’s fluctuating from quarter to quarter. So it’s hard to say. Right now for the December quarter guidance, we estimated a similar level of licensing and engineering revenue.
Jeremy Kwan: And the impact to gross margin?
Yifan Liang: Sure. Yes, the margin for the licensing and engineering service, yes, it is definitely at a higher margin than our product margins. We don’t breakdown by specific in the product line or product elements here.
Operator: We have a follow-up question from David Williams with Benchmark.
David Williams: Just curious on the appliance side. Stephen, I know you’ve talked about that being an area of opportunity for you. And — but it’s largely greenfield today. Just kind of curious what you’re seeing in the appliance market. Has that improved or worse or anything in particular there you should — you’d be optimistic about?
