Gary Yu: Right. And also, I want to clarify Tristan, is that not 100% from those two fabs have transferred from outside to inside. We do have a new technology really tape-out in those two wafer fab starting from zero. So that’s really good news for us. So when we say that, it does not mean 100%, we are uploading from the outside foundry factory. So we do have our internal technology and product tape-out releasing in these two particular wafer fab.
Tristan Gerra: Great. That’s very useful. And then just following up on the commentary about inventories. In the Q2 guidance that you’re providing, do you expect to build additional inventories on your books or do you think that as you reduce your utilization rates in the quarter, you’re now building in line with actual end demand? And then secondarily, could you talk about what point of sales for — at distis (ph) is embedded in your Q2 revenue guidance?
Brett Whitmire: Yeah. I’ll make a couple of comments, Tristan, and then let Emily run with some others, is that what I’d say on the inventory front is that we basically have done some things in first quarter that address needing to make sure we have availability in place, addressing uncertain order patterns, addressing the fact that Chinese New Year came in February, which is a much more difficult time to manage that across the quarter and have an availability in place. And as we look out in second quarter, what we expect is essentially to be running at a level of what we expect demand to be. I don’t expect to be building inventory internally, and we certainly don’t expect to be building inventory externally. We continue to expect to make progress there, and we continue to see good activity from a POS perspective. And maybe I’ll see if Emily wants to extend that comment at all.
Emily Yang: Yeah. So, Tristan, to answer your question, when we provide the Q2 guidance, we do consider the point of sales forecast as well as the channel inventory situation. So — and then that coupled with the backlog and then some other things that we’re seeing. So, yes, it is included into our estimate.
Tristan Gerra: Okay. And then if I could slip maybe a quick third and last question, otherwise, I’ll go back in the queue. But can you say where your utilization rates are currently at the front end? And what type of internal inventory days you need to see on your book before you start ramping utilization rates again? Thank you.
Brett Whitmire: Well, I would say that we haven’t really been communicating our utilization rates. but relatively speaking, what I would say is that we like to run our assembly test in the mid-90s, and we like to run the fabs in the mid-80s, and we’re not in that place on either one. We’re significantly below that. And we believe that as things pick up and we continue to see strength, that’s going to be a tailwind for us, is being able to load our factories. That’s not something we’ve been – we have not maintained our utilizations across the period over the last year as we’ve seen the softness. As we think about the utilizations over time, what we’re — will be — our strategy is going to be to maintain utilization consistent with demand as we move. We think we have availability in a good place. We’re trying to make sure we’re opportunistic. We think that’s what we’re going to win with that. And so that’s the approach we’re taking from a factory side.
Tristan Gerra: Great. Thanks again.
Operator: And our next question will come from William Stein with Truist Securities. Please go ahead.
William Truist: Great. Thanks for taking my questions. First, perhaps I’ll take another whack at the inventory question. There was a big build, again, sequentially dollars and days. Can you remind us what the long-term inventory target is and when you’d expect to get there approximately?
Brett Whitmire: I’d say on inventory, what we’re looking at is trying to — when we look at our portfolio of 50,000 parts and the availability and the mix, one of the things that we were never able to do is really get availability across the breadth of our portfolio in place, especially off of some of the more critical products and some of our most premium products. And so, we would actually be constrained on some of our best products in terms of availability near-term. And so, what we’ve done across this period, and you can see it the last couple of quarters is, as we start to get a feeling that we’re coming out, seeing light at the end of the tunnel, making sure we’re in a position that from availability within that 6 to 8 weeks, we want to have a reasonable mix of product off the shelf.
And that is something we’re actively working on. We’re actively — both our shelf, we’re actually working availability mix with our distributor. We see progress on that, and Emily mentioned it. And I think from a weeks of inventory and finished goods, that’s not something we’re strategically planning to increase. As we actually see things start to lift up, our goal would be to try to maintain that as we move through — maintain utilization with demand and be able to basically have an advantage on availability. We think our service is an advantage over time. And certainly, if we have availability there, we think that’s going to be an opportunity to gain share and to get momentum as demand picks up.
Gary Yu: Yeah. Actually, we do see more and more short lead time PO coming in at — really the demand we saw starting from end of the first quarter. So if we put a right mix of our inventory in our house, we got much better chance to support this kind of rush order.
William Stein: Just before I go on to my next question, I just want to make sure I understand what you’re saying. You’re running at about 190 days of inventory. Is that — it would be, I guess, sort of unusual to hear a company at this point in the cycle, say that they want to maintain that level of inventory, but maybe that’s a great strategy. Can you just confirm my understanding or are you meaning on a dollars basis, whereby the days would shrink pretty precipitously if revenue rebounded?
