The indicators that we follow, price, inventory and utilization, we still see trending in the negative direction or flat. So, we haven’t seen a turn at this point. But we wanted to be careful to point out that in the DRAM market, we have seen strength this year. And it’s sort of a normal year from an equipment perspective on the DRAM side, even though the memory market itself has been weak.
Gary Dickerson: Yeah, Joe, this is Gary. I think the other thing to add is that part of our business is based on service agreements, and that also helps us have a higher level of stability. We’re over 60% on the service agreements. And again, that’s keeping that part of the business much more stable, even though the memory utilization is down. And the other thing I would say is that there is a significant amount of complexity. If you think about all the inflections, whether it’s in memory with DRAM or ICAPS or leading-edge foundry logic, about a third of our revenue are these integrated material solutions with multiple technologies combined in a single platform under vacuum, those are increasing, those steps are increasing, and the service opportunity for us is also increasing. So, we’ve talked about the low double-digit growth in Service. Once you come back to more normal levels of utilization, and we have a high confidence we’re going to be able to achieve that.
Joseph Moore: Okay. Thank you very much.
Operator: Thank you. Please standby for our next question. Our next question comes from the line of Brian Chin of Stifel.
Brian Chin: Hi, there. Good afternoon. Thanks for letting us ask a few questions. Maybe firstly, it seems difficult to imagine AI not driving incremental foundry capital spending in the next upcycle. So, have you thought about how much incremental WFE spend in future years could result from AI-driven wafer start expansion?
Brice Hill: [Audit Starts] Hi, Brian, thanks for the question. We certainly have. When we think about the WFE share of the different end markets, data center has approximately 20%, we think AI is about 5% — AI-related WFE is about 5% of our overall market. And you’ve heard different peers talking about a high growth rate bearing between 30% and 50% for that workload and the amount of capacity. So, if you view 5% as relatively small amount, we do think that it’s growing rapidly and it’ll be an important workload going forward. So, that’s our sizing for now. And as a comparison, we would hold that next to 10% to 15% of wafers that would be associated with IoT, and we think those things — IoT wafer starts and WFE will also grow at an elevated rate.
Brian Chin: Yeah. Got it. That’s helpful. And heterogeneous integration is sort of supplemental to that as well, right?
Brice Hill: That’s right.
Brian Chin: And although it wouldn’t be detectable from your results, did you see any pushouts from advanced foundry and logic customers? And also, when you think about the several domestic foundry shells that are either constructed or being constructed and ready to be filled, now until, I guess, into next year. What’s kind of your current expectations for the timing and significance for some of those expansions?
Brice Hill: Yeah. There’s still a lot of movement underneath the macro number in our results, there’s still a lot of movement underneath as you’re suggesting with that question. So, we have seen a delay in installation of some of the tools, and we have seen push outs with some of the leading foundry customers. So, that’s consistent with what we’re seeing. And then I would just highlight again the strengths in ICAPS and the strength in DRAM, both Q3 and Q4, our outlook is really what’s offsetting that.
