Jamie Coogan: Tom, just adding to that, our – many of our customers in that particular market are foundry based, and so they shift around depending on what’s active for their end markets. So really looking to what they’ve been talking about publicly recently, it’s been the beginning of some PC activity, the automotive kind of bouncing around on the bottom and industrials kind of hanging in there a little bit. The expectation is we really need the consumer stuff to kick back in to really drive that market quite a bit.
Tom Diffely: Great. Well, thank you for your time.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Charles Shi of Needham & Company. Your line is now open.
Charles Shi: Hey, good morning, Russell and Jamie. I want to ask a little bit more details by your various end markets, provided that your breakdown for the Q1 numbers. If I compare with the full year 2023 numbers, it looks to me that silicon carbide does continue to be strong. It’s at a higher run rate, revenue run rate in Q1 compared with the full year 2023. Silicon power devices is slightly lower in Q1, but mature foundry logic, which is not the power device, the mature general semis, looks like it’s tracking actually well above last year’s level. So these are the three most important end markets for Axcelis I believe. Can you kind of walk us through what’s the trend through the rest of the year for these three markets?
I did hear you, silicon carbide will continue to be strong, but what about silicon power devices? Are you expecting a recovery? And the current run rate of mature general semi, do you think it’s sustainable through the rest of the year? And I have follow-up. Thank you.
Russell Low: Thanks, Charles. This is Russell. So, yes, you’re right. So if you looked at last year to this year, the power is about the same, but within side of that, you – yes, you’re right. Silicon carbide has gone up by the same amount that silicon power has gone down. The one thing that you notice that last year we had sizable amount of DRAM in our business. So this year, the reason why the global – sorry, the general mature has increased is because at the moment our memory is quite low. Regarding general mature, I think what is driving that? I think we certainly see strong silicon carbide power in China. We see that to continue. We have some visibility with our bookings. Regarding the general mature, I think Doug hit that one ahead.
Basically, it’s consumer spending. So when consumer spending picks back up, and obviously, we’d love memory to pick up as well. You’ll start to see a rise up in our business, not like – not unlike many others in our peer group. So really we have a strong underlying business. We’re kind of waiting for some of our markets to recover, and we do expect to see that happening in the second half, which is why we’re forecasting the second half to be slightly ahead of the first half off.
Jamie Coogan: And Charles, just adding a little bit more relative to the power, one of the things we like to make sure everyone understands is the broad base of customers we have in the power both in silicon carbide and in silicon. And so dependent on what the car companies all decide relative to their EV plug-in hybrid strategy and so forth. We’re well-positioned across that supply base, and that’s geographical as well. So recently it’s been stronger in China. A year ago, it was stronger in Europe. So it will move around depending on the end customers for those products. And the last piece is, it’s not just automotive that’s using a lot of power. As Russell said in his prepared remarks, there’s a lot of activity for power devices in many other places, data centers and so forth. Clean energy are just a couple of good examples.
Charles Shi: If I can follow-up, well, maybe I should ask the question a little bit more directly. What I asked about the mature foundry logic, I mean, anything that’s standard CMOS that’s not the power devices, that’s not the silicon carbide. Based on the breakdown you provided, looks like it was 41% of the Q1 revenue, right? That translates to roughly $100 million of the revenue, I think from that segment that the non-power, non-image sensor part of the mature nodes. The total revenue last year was roughly $290 plus million, which means Q1 run rate from that particular segment is pretty high. So my question, if I may, really is about whether this is a one quarter phenomenon or do you expect the strength to continue throughout the rest of the year?
Because I do remember you were expecting the second half growth. Some of that second half growth will come from even stronger, mature, standard CMOS, foundry logic type of devices, the non-power, non-image sensor type. I just really want to clarify that given the Q1 number. Thank you.
Russell Low: Yes. Thanks, Charles. Sorry about that. So the answer is that market is beginning to recover. If you look at all the reports from our customers and our customer customers over this quarter, all are indicating signs of recovery. So we would expect, and continue to expect that the mature markets as a whole are going to account for over 90% of our total systems revenue for the year. So whether it stays exactly where it is this quarter, it’s likely to bounce around, but we would expect increasing trends into the recovery.
Charles Shi: Thanks.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of David Duley of Steelhead Securities. Your line is now open.
David Duley: Thanks for taking my questions. I have a couple. I get a lot of questions from investors about how the pivot from electric vehicles to hybrid might impact your business. So could you just talk a little bit about the difference in the number of steps and implant intensity for hybrid versus electric vehicles?
Russell Low: Yes, Dave, that’s a good question. So a lot of people don’t realize that hybrid vehicles have a significant amount of power chips and inverters in them dating back to the original players [ph]. And so it depends on the car, depends on the architecture, whether it’s silicon IGBT or whether it’s silicon carbide, there’s probably more use of silicon IGBT in hybrids today as costs come down, as performance requirements come up for hybrids, as car companies start to look at increased range in plug in hybrids and these kind of applications, then we would expect to see them looking at silicon carbide. But for Axcelis, keep in mind the implant intensity for all power devices, whether its silicon or silicon carbide is very high. And so both markets are very good for implant and for Axcelis.
Jamie Coogan:
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