Ajay Marathe: Just very quickly on the Gen-2, I think Raj alluded to it, but just from my personal, how I feel confident, I’m an operations guy, data is the only thing that matters. So yield uptime of the Gen-1one is what is giving us the confidence, as I told you earlier. But more so in the Gen-2, I personally have visited all the suppliers, all of them who are making these POCs, these machines, spend good time with them. Look through each of these suppliers, the methodology that they’re using to build the machine. Looked at the POCs myself. That is what is giving us a confidence. And exactly as Raj said, this is all about backend of semiconductor type of technology, tolerances, et cetera. And now we are seeing the ramp — upswing of the ramp that we are producing, that gives us the confidence.
Operator: Our next question comes from Sean Milligan from Janney. Please go ahead.
Sean Milligan: First, I get asked a lot about who is YBS and what is the background there? And so, I know you touched on it earlier, Raj, and that they’re used a lot in backend semi-processing. But can you kind of maybe touch a little bit more on kind of how that relationship came to be about? And what gives you confidence in YBS’s ability to execute on financing?
Raj Talluri: Yes. So a couple of things. Look, I mean, I think if you look at Southeast Asia, there’s a lot of contract manufacturers. And we — Ajay has decades of experience in Malaysia, and I came from Micron that built the last factory in Malaysia on an assembly test of SSDs. So we understand the ecosystem. We understand who the people are that do it well. And YBS has got a good track record of actually supplying, and manufacturing for many top tier OEMs. And they have that capability. And again, they have the strong connections to the key people in Malaysia. And Ajay visited them and they came here, we talk to them, and they’re a solid company, and we feel very strongly that they will be successful. And so, based on our experience, and what everything we’ve done, I feel very good that this will get done.
And it’s not something that’s obvious to everybody who doesn’t live in that part of the world. But we spent a lot of time in Southeast Asia. So we feel good that that will get done. But maybe I can come a little bit more because he goes there a lot often than me.
Ajay Marathe: Yes, sure. So YBS is a company I’ve known now, actually, for quite some time. They are indeed, exactly as you said, in the backend manufacturing, sub-contracting business. I know the CEO and the team there, which runs. So I’ve been kind of studying them actually, for some time even in my previous life. They have a very good — the uniqueness about them is they have exactly the talent that we would need to localize some of our supply as in constraints, as in few other mechanical things. They’re really good at that. So when I localize them to where I can make them right next door. That is where I will get my cheapest, total cost, and cost will be reduced. So YBS brings a lot more value than just being a contract manufacturer, they’re also going to help us with our ecosystem of various components that go into the battery.
Sean Milligan: Okay, great. Noted. That’s great feedback. And then, my follow up would just be, Raj, I just wanted to clarify something you said earlier, and it kind of relates to Gen-2 line 2, 3, 4, the execution on those. You mentioned that. Were previously I think that that conversation talked about those being there by or ordered or delivered in Malaysia by the end of next year, you were looking to line those up more with demand. Obviously, the pipeline that you have is robust. So I just wanted to clarify, is that lining up, making one all wearables to optimize margins that line or is it really just filling the demand funnel needs to fill to have those lines come in?
Raj Talluri: Yes. I mean, again, if that’s what we want to make happen, which is pull the trigger and get them all out next year, if that’s what makes most business sense, we will do that. I’m not saying we won’t do that. I’m just saying, I’m just in general, a more of a supply demand matching kind of guy. So the way I look at it is, we have various customers that are actually qualifying our product in IoT devices. They’re qualifying it in smartphones. They’re qualifying them in variables. They are qualifying them in laptops. And when we pull the trigger on a line, you want to make sure you’re pulling the trigger on the right line. And that produce the right kind of batteries for the right customer. So it’s not all in it. This is beginning of this year.
It’s not all absolutely clear to me which one will be the first one, which will come next? And what timeframe it will come. As you guys know that the demand for batteries in the total time is huge. But we just want to make sure we build the right one at the right margin at the right thing that makes money for the company. And that’s kind of where I was talking about matching supply and demand.
Operator: And our next question comes from Chip Moore from EF Hutton.
