Brian Chin: Okay. Fair enough. And then just to kind of level set and DRAM and then also looking forward. How much did DRAM industry spending actually declined in ’23? It seems to be better than what was initially thought based on HBM, et cetera. And also, can you give us a sense of the number of wafer starts or percent of the DRAM installed base that could be converted to more advanced 1-alpha or 1-beta like process nodes this year?
Douglas Bettinger: I guess, Brian, what I’d say and Tim, I think had this in his script, memory overall was down roughly 40%. NAND was down north of 70%. The differential to get to the number is DRAM. You can do that. And yes, I think the second part of your question, HBM and DDR5 has been a big part of the strength in DRAM.
Timothy Archer: Yes.
Brian Chin: Okay. And that was actually the second part was kind of more towards, what is the potential number of wafer starts or the percent of the installed base that’s sort of game for those conversions to 1-alpha, 1-beta light nodes?
Douglas Bettinger: For the most part, in memory, everything gets upgraded to the next node, all of it. That’s always been the case. It’s not a new phenomenon.
Operator: The next question is from Chris Caso with Wolfe Research.
Christopher Caso: The question is on delivery times. And you had mentioned, obviously, your delivery times may be different than some others in the industry. Where do they sit right now? And as a consequence, how much visibility do your customers need to give you? And with that, when we start to see some stronger perhaps memory spending, how quickly will you be able to react to that and turn that for revenue?
Timothy Archer: Yes. So we don’t obviously publicly telegraph our lead times. But we had talked about the fact that during the COVID pandemic, our lead times due to supply chain shortages, it stretched out quite long. And those have now come back to a much more normalized level, although they still are such that for us to make shipments within this year, we would have to know about those orders and that forecast pretty quickly. The one thing that’s helped is I talked about our investments in new manufacturing and supply chain operations within our customer ecosystems. That’s putting us much closer, it’s diversifying our supplier base and I think it’s going to — through this next upturn make us much more responsive to customer needs.
So really, we worry less about lead time and more about our ability to respond in the time frame, which our customers need to place orders to meet their ramps. We tend not to be — we tend not to be in the bottleneck, let’s put it that way in terms of a lead time perspective, planning a new fab.
Christopher Caso: Fair enough. As a follow-up question, I wanted to ask about backside power. And last quarter, you made some disclosures about the revenue impact to Lam as that happened. Could you give a little more color on that and specifically, we know that the different customers are having different implementations of backside power. At what point does that start to become a meaningful driver for Lam?
Timothy Archer: I think given the important role that both etch and deposition play in that and our strong position in parts of the backside power process like copper plating where some of those layers are becoming quite thick and therefore the processes become longer. It’s — I would say, going to very rapidly become quite meaningful for the company. And again, it’s just a further demonstration of how going 3D and essentially using those — using etch and deposition to create more complex architectures allows you to reduce power, improve chip performance and also reduce cost. And we talked about it in the sense of backside power. You’re seeing the same thing with chip stacking and HBM and energy integration. And that’s why I said, I think the next era of semiconductor is characterized by all of these more unique 3D architectures. They’re all good for the types of products we sell.
Operator: Operator, we have time for one more question. And that question comes from Thomas O’Malley with Barclays.
