And there is a significant chance that the capacity growth is at some point going to slow down or even to pause. And so I’d like to hear your thoughts about that and maybe a sense of how much it could impact in the shorter term capital intensity.
Gary Dickerson : Pierre, this is Gary. Thanks for the question. So I will say that we’re 100% certain that all of these markets will not be up every year. But what we do see, if you think about pick a number, in terms of edge computing devices by 2030. These technologies are becoming much, much more pervasive. They’re really — if you think about industrial automation or gas to smart electric vehicles, a number of different inflections, a lot of these ICAPS technologies are going to grow at a fair compound annual growth rate. And I think that’s what other people are seeing also. So how that — what the shape of that looks like every single year, we’re not going to forecast that. But we do think that, that business is going to see healthy growth.
And that’s why also we formed the ICAPS organization three years ago. We saw that, that market was going to be significant from a growth perspective and pulled together all of our different technologies. So again, if I look across all of those segments within ICAPS, we think over the longer term, there will be significant compound annual growth rates. We have very, very strong positions in enabling some of those technology inflections in ICAP, but we’re not going to give a specific profile on a year-by-year basis.
Operator: And our final question comes from the line of David O’Connor with Exxon BNP.
David O’Connor : Great. Follow-up on the backlog to a previous question. Gary or Brice, how should we think about the time frame of getting the backlog back to a kind of more normalized level or — when do you expect to get caught up on demand for those products that are running pretty hot on the PPACt side?
Brice Hill : Yes. Thanks, David. We’re expecting it’s going to take us more than two quarters. So depending on the line of equipment, I would say between two and four quarters is our internal estimate. And so — that’s what we’re focused on. We are behind with the customers, and we’re working on increasing output every week. Thanks for the question.
Michael Sullivan : Yes. Thanks, David, for your question. And Brice, would you like to give us your closing thoughts today?
Brice Hill : Yes. Absolutely. Clearly, there are questions about the market in the near term. But for our part, we had healthy Q4 orders, and we have record backlog that we described and it’s mostly in our leadership product areas that drive the big technology inflections. Job one for us is increasing our output to meet customer demand. We’re in a strong financial position to continue to develop our broad portfolio of technology and to drive the critical inflections and to support, eventually, a $1 trillion semiconductor market. I hope we get to see many of you at the upcoming Credit Suisse and Wells Fargo conferences. In the meantime, we hope you enjoy a safe and happy Thanksgiving. Thank you. Mike, let’s close it up.
Michael Sullivan : Okay. Great, Brice. So we’d like to thank everybody for joining us today. A replay of the call is going to be available on our website by 5:00 Pacific Time. And we would like to thank you for your continued interest in Applied Materials.
