Lothar Maier
Just a point of clarification, even though we are sell-in, we also know what they sell-through, so we have visibility into what they sell-out and into what customers they sell it to, so is not a black box. We don’t ship-in and then forget about it we know it sells through.
Vivek Arya
Got it. I understand. Then the second question is on, I believe questions were asked about your domestic cash balance. I am wondering what your plans are for your overseas cash balance, which I think is over 80% of the cash and I believe 20% to 25% of ongoing cash generation. What do you think is the most productive use of that cash?
Paul Coghlan
First of all where we can employ it overseas, any plant expenditures or things like that that we have, we employ it for those purposes. To employ it, we needed to bring it back to the United States either for corporate purposes or for some US fixed asset addition, then we would have to pay tax on it. Currently, with the US government talking a lot about tax reform, we think it wouldn’t be wise to pay 35% tax on something that the whole tax situation may change, so that presently we are leaving the cash where it is and not having any plans to repatriate.
Vivek Arya
Got it. One last one if I may, I think you mentioned auto as a key growth driver and you also mentioned that channels are lean, but do you see any concerns with the build in and finished car inventories, because many people have mentioned that in China for example, built car inventories are at multi-year highs. Is that a concern at all for you?
Paul Coghlan
Well, China, we have a very small automotive business there in China. We already told you, we sell a lot into high-end cars in Europe and Japan. I am not sure, are you saying, there is high inventory in those?
Vivek Arya
No. I am asking, do you monitor finished car inventories also? When you say your channels are lean, you are only looking at your specific channels? Are you are reconciling…
Paul Coghlan
We only look at our channels, we look at designing in product to get greater content of our product in cars that it is going to be produced three years from now.
Vivek Arya
I understand. Thank you.
Paul Coghlan
You’re welcome.
Operator
We will take our next question from Deepon Nag. Go ahead. Your line is open.
Deepon Nag, Macquarie Capital Partners
Thanks a lot for taking the question, guys. You spoke a lot about content growth opportunities in auto, is it possible to kind of give us an idea of your exposure by application on the comm. side and whether if your content growth opportunities in new technologies, whether it would be small sales in the wireless side, 25, 40, 100 gig wireline side?
Lothar Maier
I am not sure we have that close visibility in that market, but I would say on the sort of infrastructure side we see good opportunities probably more in sort of the smaller pico-femto type of base station applications rather than sort of the big iron ones, so I think that is which is probably they sell two or three times as many of the small ones as they do they do the big ones, so that is an areas probably if I could add a little color to it, but more detailed than that I do not have any.
Deepon Nag
That basically it is radio exposure and do you have – on the backhaul as well?
