So we do not expect to see any significant volumes until the second half of next year. And then last but not least, I mean, the last priority will be the liquid filtration manufacturing in Taiwan. This will be, by far, the largest value of production coming out of that building. And we are very actively completing our internal qualifications, but we don’t expect customer qualifications to be completed until the second quarter of next year. So again, we don’t expect really significant volumes of until the second half of the year, and that really means that there won’t be really a lot of relief on the P&L drag until that point in time.
Michael Harrison: All right. That’s very helpful. And then kind of a housekeeping question regarding the interest expense number for Linda. You mentioned that the $66 million guidance in Q4 doesn’t really collect all of the paydown from divestitures, maybe some cash flow and obviously some changes that you’ve made with refinancing. So what is the starting point in 2024 with the modifications that you’ve made and the paydown that you expect to make before year-end? .
Linda LaGorga: Yes, that interest expense number would be approximately $62 million. So the reason it wasn’t all paid down this quarter is because it was staggered throughout the quarter, that $730 million based on the hedge.
Operator: We’ll take our next question from Sidney Ho with Deutsche Bank.
Sidney Ho: For 2024, it’s good to hear that you guys are reiterating your view that wafer start will get better. But specifically for first half, do you expect any kind of inflection point or more of the same as in the second half. Are there any areas that you think could see a seasonal cyclical increase? How about areas that may see risk like we talk about mature notes or maybe some of the CapEx-related strength you were seeing this year? .
Bertrand Loy: Sidney, I appreciate you being curious about 2024. But as I said earlier, and I will stick to that. It’s too early for us to talk about 2024, but I promise you that we will do that in February.
Sidney Ho: Well, I’ll ask a different question then. In your prepared remarks Bertrand, you highlighted strength [indiscernible] carbide slurries and pad. And over the past few weeks, we started to hear some weakness in [indiscernible] carbide. I’m curious what are you seeing in that business? Is your business tend to be a leading indicator for things to come? Or just give us a sense of where things are there?
Bertrand Loy: Yes. So good question. And indeed, this business has been growing very rapidly for us. There are 2 sides to the opportunity. I mean, one would be things related to the new fab construction. So wafer carriers, large gas purification systems, so products that you’re all very familiar with. But the one area that we’ve been highlighting in the last quarters are really consumable products. They are SIC slurries as well as post-CMP cleaning solutions. Specifically, when it comes to SIC slurries and pads, we’ve seen very rapid adoption of our solutions. And those solutions obviously are being used as a function of the level of fab activity. So it’s true that some customers are talking about bringing down utilization rates, but there’s just so much new capacity that is coming online that we don’t expect to see a very adverse impact to that business.
As a matter of fact, we are actively adding capacity. I mean, this business has essentially doubled in 2023 compared to 2022. It’s still small. It’s — think about it as something like about $40 million annually, but it’s growing very rapidly, and we are adding capacity ahead of what we expect to be very significant demand for those solutions.
Sidney Ho: That’s helpful. Maybe just quickly a question for Linda. I may have missed it on the call, but can you quantify what’s the drag on the gross margin from the Taiwan facility? And what’s the impact on the distribution agreement being terminated? I think last quarter, you talked about that potentially being a 0.5 point of headwind. Just want to get those numbers in.
