So that might — that’s up for speculation because that’s the one that’s hardest to plan for reasons that we talked about before. But we assume that the upgrade business will be lower and that, of course, is a big drag on the gross margin. And then the last element in the gross margin, and that’s important to recognize, and we’ve been talking about this before, but I just want to emphasize it. We are incurring significant costs in our operations as it relates to preparing for both high-NA and preparing for the big step changes that we’re making in our capacity. Do not underestimate that. That’s a significant number. It’s an even bigger number than it was last year. And of course, that continues until the point in time where the capacity is built and will be fully utilized or — and/or high-NA is going to be utilized.
So that’s a drag that we continue to have, and it’s bigger, as I mentioned, in ’23 and — than it was in ’22. So those are the moving parts. That’s why we say, if you add it all up, we’re talking about a slight improvement over last year. I think it’s important to note, Amit, that if you look at all of that, a number of the negatives will be gone, let’s say, in the ’25 time frame. And that’s why Peter also reiterated in his video that we believe the 54% to 56% is still there because at that point in time, the capacity is there and should also be utilized. And the same high-NA at that point would be up and running. And also potentially, the installed base business at that point would be normalized. So I think that’s the way to look at it.
Operator: And our next question comes from the line of of JPMorgan.
Sandeep Deshpande: This is Sandeep Deshpande here. I just want to touch base back again at the gross margin. I mean you’ve talked about the €3.1 billion of fast shipment being recognized in ’23 and then potentially as much going into the following year. I mean does that have an impact on the gross margin? Or is it completely neutral to your gross margin? And secondly, in terms of the cost crossover on the gross margin, which was expected to happen in the second half of this year between EUV and deep UV, is that happening? And I have a quick follow-up.
Roger Dassen: Okay. So on the effect of the fast shipments, if indeed we’re going to have the same number going into the year as we see leaving the year, then the impact is 0. Of course, the impact, and as I mentioned before, Sandeep, if indeed we’re going to see some change in our revenue recognition, of course, that would be a potential plus for the gross margin. But we’re not planning on that in the numbers that we’ve now shared with you.
Skip Miller: Do you have another question, Sandeep?
Sandeep Deshpande: Yes. No, sorry. My follow-up on that on the gross margin was the crossover.
Roger Dassen: Yes, the crossover. So EUV system gross margin at this stage around 50%, so more or less the corporate gross margin. What we said is there will be a point in time where you will also see EUV system gross margin getting closer and closer to the immersion business. There, I think the introduction of the 3800 is going to be a big one. So the introduction of the E model, the 3800E, by the end of this year even though, as we mentioned, it’s only less than a handful this year. So the impact on the year will be small. But once the 3800E is going to be the lion’s share of the EUV tool, then you will really see a good boost to the gross margin that will have on EUV.
