Vedvati Shrotre: And then another question I had was, there are some notebook desktop chips that are starting to use chiplet architectures which will start ramping soon. Can you help me understand what this opportunity means for you? Do you think it becomes an opportunity as big as HBM that you’re seeing right now?
Rafi Amit: So that’s definitely something that will enlarge our market. And this is what I think will happen. I think people are starting to use the same architecture, but not adding the HBM’s. I think this what will happen, some of the applications of gaming and so forth actually require the HBM’s, but many do not need. And this is what I said in one of the questions before. I personally believe that as they ramp the HPM’s, they will get the cost structure, which is today, I would say, one of the limiting factors. But the HBM cost structure will go down with the volume. And then I don’t want to say that it will become standard, but definitely it will become the preferred architecture for most of the computers. So that’s something and in most cases, the high-end becomes the standard over time. And I think this would happen in this case as well.
Kenny Green: [Operator Instructions] Our next question is going to be from Vivek Arya from Bank of America Securities.
Vivek Arya : This is Dodson on behalf of Vivek. A question on gross margins. I’m curious about your outlook into ’24. Not looking for a guide obviously, but what are some of the puts and takes and drivers of margins next year? Could it return to your target 50 plus levels?
Moshe Eisenberg: So, yes, we said, basically, that we took certain steps in the beginning of the year. We are seeing the fruits of it starting to affect our gross margin. This is the second quarter or the third quarter, actually in a row of improved gross margin. We expect continued improvement, gradually. The target is to reach 50% mark. The only give and take here is that, this is all subject to sales mix. So in some cases or in some quarters, we have more favorable product mix, and in other quarters, this is less favorable. So this also have an impact on the margin. But, overall, our target for next year is to be at least 50%.
Vivek Arya : And then could you talk about your order trends outside of AP? Maybe some of the visibility in compound semis? You said mobile phones and automotives have also been encouraging. So I’m curious about your outlook there. Thank you.
Moshe Eisenberg: So, in general, our, I would say, advanced packaging, which includes the chiplets, HBM, Heterogeneous Integration and so forth. This is, I would say, it’s above 60%, can come up to 65%. Then I would say the next sizable business is what we call the silicon carbide and the front end. We combine them together. They would come to anywhere 20% to 25%. And then we have a few others. CMOS image sensors have been low lately for the reason that mobile phones are down, so this has more or less coupled this business with mobile phones, I assume that next year, they will be better. This business can be anywhere between 5% to 10%. And then there are RF [mains], a lot of smaller businesses that will account to the 100%. But if we look at the I would say the strongest driver, no doubt, today is on the advanced packaging part, which is the Chiplets and the HBMs. And that’s no doubt a growth driver that is going to be dominant for the next couple of years, at least.
And then the silicon carbide and the front-end, definitely, this market may be a little bit slower now, but definitely this is overall the CARG, is in the range of 20% annually, definitely a market with a sizable opportunity.
Kenny Green: Our next question is from [Ella Przyluski] of Optimus Funds.
Unidentified Analyst: One question about the geographic revenue split for this quarter, please?
Rafi Amit: Yes. So Asia was around 80%, and U.S. and Europe was 20%.
Kenny Green: Our next question is from Shahar Cohen of Lucid Capital.
Shahar Cohen : Going back to Vedvati question about some of the laptop or desktop publication. You spoke about HBM, but I’m not sure HBM is clickable to these. Maybe trying to understand in your answer, you meant that HBM will be adopted in the laptop and desktop, or you meant the advanced packaging techniques will be adopted in those? And given the magnitude of laptop CPUs compared to GPUs. Wouldn’t you expect a major leapfrog on your advanced packaging next year, giving the ramp up of, so the, laptop, CPU advanced packaging applications?
Rafi Amit: There are 2 question and let me start with the first one. The question that came before is that you see today notebooks, and in general, the PCs starting to adapt the chiplet architecture. Now down the road, they will add also HBMs. Currently, they are not. I think the only application that I know of in the PC arena that’s using the chiplets and HBM is some gaming applications. But from the structure, they’re starting to use the structure of the chiplets, which will eventually, will probably start to use also HBMs as well, as they need more and more power. But this is still down the road. Now regarding your second question, no doubt there is an opportunity. But the question is how fast it will grow and how fast HBMs will go to other applications other than AI, this is still not clear.
