Vijay Rakesh: Got it. Great. Thanks a lot.
Operator: Thank you. And our next question comes from the line of Tore Svanberg with Stifel.
Tore Svanberg: Yes. Thank you, Bill. Thank you, Dan. Congrats on the record results, I have a non-AEC related question. You talked about the UCIexpress opportunity. And I do recognize that this is kind of further out, but as we think about chiplets and licensing, how should we think about this playing out for you over the next few years?
Bill Brennan: Well, I think that’s we — first of all, we kind of classified chiplets as a product, because we’re building and selling those. And so as it relates to the IP, I think our long-term guidance, kind of, fits in the 10% to 15% range that Dan has articulated. For the UCIe chiplets, we see this — I mean, we were very early on in chiplets. We’re by far ahead of the rest of the competition. Given that we kind of saw this move towards disaggregation early. It didn’t really play out, but now that we see USIe on the horizon, we’re very big believers. If you look at the consortium that Intel has really driven and you look at what they’re doing today, chiplets are going to be popular in high volume in — I think they are relatively near-term.
So as speeds move to 32 gig to 64 gig, this can become more and more popular. And I think that if you look within a server, you can see eight to 16 chiplets per server in the future. And so with that kind of volume, it becomes — you can do the math. It’s going to be a very large revenue opportunity.
Tore Svanberg: That’s very exciting. And then to follow-up on AEC and the sort of the second hyperscalers that’s expected to launch, sounds like you have a lot of confidence in the timing there. I was just hoping you could give us a little bit more background information, I mean, obviously when we think about the hyperscalers cutting CapEx, I’m sure there’s some priority CapEx and some not the priority CapEx? So I mean would this fall into like the really highest end priority for that particular customer? Is that how we should think about it?
Bill Brennan: That’s the way that I think about it. For sure, I view this program as something that is a strategic imperative as they talk about it within the supply chain, as well as within our customer base. So I feel pretty confident that this is going to be mainstream. And although they have been pretty consistent with their schedule, of course, things can happen that might cause a delay. We’re not seeing any signs of that and the closer we get, obviously, the more confidence we have in the ramp. But it’s not as if I can make a firm commitment on exactly when they’re going to go to production. But it feels like no change from our end.
Tore Svanberg: That’s very fair. Last question for Dan. Dan, you said in the last quarter you would build inventory, you did that inventory days now just over 100. based on Bill’s comment about sort of keep building inventory until you feel better about the whole China lockdown situation, how high should we expect inventory days to potentially get to before you feel like you got the situation under control?
Dan Fleming: Well, I don’t expect that the days will increase from where they are right now or if they do it would be a very small increase. We were essentially flat quarter-over-quarter. Even though it looked like a significant increase in inventory, it’s actually kind of in line with our product growth quarter-over-quarter. So bearing that in mind, we’re comfortable with where we are, we continue to build an excess amount of days of inventory, of cable inventory to ensure that we don’t run into in a situation that we had back in Q4, when that COVID lockdown kind of interrupted our fulfillment of demand. So we’re comfortable with where we are right now and I wouldn’t expect any major deviation from a days of inventory perspective. Longer term, of course, that will settle down to maybe 100 days of inventory, but that’s off in the future.
Tore Svanberg: Okay. Sounds good. Congrats again. Thank you.
Dan Fleming: Thanks.
Operator: Thank you. And our next question comes from the line of Matt Ramsay with Cowen.
