Lester Wong: So Charles. We don’t talk about specific TAMs of specific customer projects. We just don’t comment on that, but we do think it will be material in terms of our advanced display revenue and as far as timing. You’re right, I think it will be the latter part of €˜23 and then there’ll be a significant ramp in €˜24 onwards.
Charles Shi: Sorry, I think, I’m thinking about volume ramp is probably latter part of €˜24, not €˜23, but you think it’s a one year earlier than what I think is that
Lester Wong: No, I said, I said most of it will be in €˜24, but it will start in €˜23 as well.
Charles Shi: Yes, Lester thanks for the clarification. Lastly, we did a manufacturing investment you’re making here if I understand correctly, your wire bonding manufacturing is largely outsourced to somebody else not exactly built internally. Can you give us some rationale or some sense why advanced display and advanced packaging you want to build internally and is that 44% capacity increase include, does that include the external capacitive wire bonders or that’s a pure internal capacity? Thank you. That’s my last question. Thank you.
Lester Wong: Charles, I think you’re mistaken. We built all wire bonders internally here in Singapore both ball bonders and wedge bonders, so we don’t outsource it. So as far as the additional capacity as we said, it’s all for advanced packaging and advanced display.
Charles Shi: Thank you. Lester, appreciate the color.
Operator: Thank you. Next question today is coming from David Duley from Steelhead Securities. Your line is now live.
David Duley: Yes. Thanks for taking my questions. I guess, the first one was, you mentioned in your prepared remarks about how you’re continuing to see wire bonder intensity increase. And I was wondering if you could just comment, I think in the past you’ve said it’s increased like 10% or 15%. Would you expect that intensity to continue to increase going forward?
Fusen Chen: Well, I think intensity increase is average cycle, right? Yes, but we do believe complexity actually it’s become more complex, we do expect intensity actually increase.
David Duley: Okay. And then regarding gross margins and wire bonders. I think in the past you’ve talked about how you improve the gross margins and on this call to how you’ve improved the gross margins at the core wire bonder business. And I think you have a new wire bonder that should come out with better margins in the roadmap. Is that going to hit in this fiscal year or when would be the timing of let’s say a wire bonder that’s got lower costs associated with it?
Lester Wong: Well, Dave. You’re right, we constantly look at improving our margins in all products, particularly our core products, to our high-volume products like wire bonding, right? So we’re continuing working on cost control. But I think as far as timing is concerned, I think we will be introducing a new suite of wire bonders. The latter part of FY €˜23 and the beginning FY €˜24. So we should see a margin jump around that point as well.
David Duley: Okay. And as far as the thermal compression bonding business. Could you just highlight again what size opportunity you think this can be for the overall market, and I think you’re probably shooting for 50% market share or perhaps help us understand what your targets are there.
