And that’s, as I mentioned earlier, metal deposition implant, those are areas where we’re very, very — in very strong enabling positions with our customers. I think — the other thing for Applied, beyond all of these different areas, high-speed DRAM with logic-like structures, all of those big inflections, our PDC business grew, I think, it was 67% in FY ’21. We’re up around 35% in FY ’22. That business is also outperforming and we think that will continue to outperform as we go forward. So at least — from an Applied standpoint, it’s really all around those big inflections and how we’re positioned for those major inflections. So I don’t know if — Brice, if you want to add anything?
Brice Hill : No. I would just comment that the — that we highlighted that we still have to catch up to customer demand in several areas. So that adds some momentum into ’23. And then the other piece is just it seems clear that productivity to drive productivity in the world, a lot of these things, like in the energy market, data center market, et cetera, still have resilient demand.
Operator: And our next question comes from the line of Atif Malik with Citi.
Atif Malik : Gary, I have a question on long-term impact of China restrictions to both domestic and multinational spend. If I look at China spending over the last five years, it has outgrown WFE by 3x to 4x. What replaces this in terms of pending capital intensity and above-average profitability for you?
Brice Hill : Yes. Atif, I’ll start. This is Brice. I think on the China side, when we look at that impact, the larger part of the business has been on the trailing nodes for us, and we expect that to still be a very strong business for Applied. And we see that in both the factory projects that we monitor and also in the different end markets where there’s investments. And then on the leading-edge, if it’s a question of do we expect that demand to be taken away from WFE demand globally and permanently? We don’t. It will either be satisfied in some way in China, either by multinationals or in some other way or it will move to another geography. So we don’t believe that, that will be an impact. And just circling back around, I would just focus on over time, we expect the China market to be a strong grower, especially in the ICAPS mature node space.
Operator: And our next question comes from the line of Toshi Hari with Goldman Sachs.
Toshiya Hari : I wanted to ask about the AGS business going into next fiscal year and calendar year. Obviously, it’s been a very steady grower for you guys and for the overall industry. Many of your leading-edge memory customers and logic and foundry customers, I believe, are in the process of cutting wafer starts, potentially over the next couple of quarters. So I guess the question is, when you cite services as one of the reasons why you’ll outperform into next year, is the baseline assumption that business continues to grow given the installed base growth and given how you transform the mix of that business? Or could it be down but it’s less?
Brice Hill : Thanks, Toshi. Thank you. Yes, a couple of drivers here. You’ll see in our outlook for Q1 that we have a down quarter for AGS, which is unusual. And the reason is we’ve got a full quarter impact, approximately $100 million for the reduction of the China customers that we won’t be able to serve for the rest of the year. So that’s definitely a headwind in Q1. But you hit the nail on the head with respect to the dynamics thereafter. Every time we ship a tool, it grows our installed base of equipment. We grew the installed base 8% last year. Beyond — or after that, our ability to provide services and put those services on subscription agreements, we typically outgrow the installed base and we did last year. So that is the driver for the reason the services business is sticky.
