Linda LaGorga: Yes, you’re correct. Last quarter on the drag from the Element Solutions transition of the distribution agreement to be approximately 50 basis points. As far as the specific dollar drag or percent drag from the Taiwan facility, we haven’t quantified that. As Bertrand said, it is going to be an impact on gross margins until we’ve fully ramped up that facility.
Operator: We’ll take our next question from Aleksey Yefremov with KeyBanc Capital Markets.
Aleksey Yefremov: This is Ryan on for Alex. Just want to start with congratulations on coming up with a new name for Materials Solutions. So nice work there. First question for me. I just kind of wanted to dig into what you’re seeing on the memory side a little bit. I mean where do you think kind of inventory sit in the chain? It seems like some commentary from some industry peers has been a little bit better. So just wondering like what you guys are kind of seeing there? .
Bertrand Loy: Look, I mean — we don’t have perfect visibility, and we rely obviously extensively on what we are hearing from our customers directly, and we are hearing the same type of update is what you’re mentioning, I think that most of our customers have been very effectively reducing inventory levels in their channels. And we have seen actually some level of stabilization in fab utilization, which again, would suggests that this is indeed happening. We’re also seeing some firming up of memory pricing, which is another indicator typically of the level of balance between supply and demand in memory. So again, we don’t have perfect visibility, we’re just looking at indicators as you are, and that leads us to believe that we are close to the bottom, but as I said, it’s just too early to talk about green shoots and recovery. We don’t really have that level of visibility yet.
Aleksey Yefremov: Great. That’s helpful. And then just last one for me here. Just any update on terms of node transitions, what you’re currently seeing? And any early preview you can give us into next year? .
Bertrand Loy: So for this year, we’ve seen all of the node transitions in logic taking place on time, which was really good news for us, important news for us, and you saw evidence of that in our business performance in Q3 in Taiwan. When it comes to memory, we signaled to all of you that we’re expecting delays and no transitions in 3D NAND, and we saw that. We were expecting originally going into the year. We’re expecting many customers to transition to 200-plus layer architectures before the end of the year and that it’s not happening, but we are hoping to see high-volume productions at 200 layers plus early 2024. But again, we’ll update you with more specifics on 2024 in a few months.
Operator: We’ll take our next question from Tim Arcuri with UBS.
Timothy Arcuri: Bertrand, I’m not going to ask about all of ’24, but I’m just wondering if maybe you can guide us just for what a normal seasonal March would be like if you sort of think about — I mean, I know that there’s a lot of million parts and you’re trying to sell PIM, but is there some way to sort of like — sort of tie into a normal seasonal March? Can you just speak about what you consider to be a normal margin? .
Bertrand Loy: So without — normal March, I mean it feels like every year has been a little bit unique recently. But I mean, typically, again, we see Q2 and Q3 being our strongest quarters in a regular year. And then Q4 typically is seasonally down versus Q3. That would be what I would call a normal March. But the question then becomes, will we see normal and steady conditions in 2024? Or would we see actually a steady increase in wafer starts and fab utilization and is that going to impact what would be a normal pattern in 2024? And again, I’m not going to go down that path. But I just want to caveat that the normal year may or may not be what we see in 2024.
