David Heinzmann: Yes. That’s a relatively complex question because the dynamics and the types of customers that are engaged in the off-board charging and things like that. Some of them are moving very rapidly and their design cycles are relatively short, can be a year or so to get from design to revenue more typically is a couple of years. There tend to be long design cycles in that space. So it can be, I would say, designed into production there one to two years. I think that’s probably generally a good way of looking at it. And it’s evolving differently in different regions of the world as well. So I think we have kind of a healthy mix. We’re focused on Level 2 and Level 3, right? Level 1, the opportunity is, yes, there’s a little bit there, but that’s not our focus.
It’s Level 2 and Level 3. Level 2 by far the highest volume space and opportunity. And we continue to look for other additional technologies that we can bring to that space. And expand our TAM even within the Level 2 charging as well as Level 3. Level 3, obviously, per unit, the content opportunity is significantly higher. But design intensity tends to be much higher at the Level 3 charging. Because these are pretty complex systems that require really strong coordination between the systems within the unit. And so they require a higher level of engineering engagement. So I would say we’re spending a higher level of time there because of the complexity and what it takes to support those sorts of design wins. So I think we’re well positioned.
We’re working very crisply with all the leaders out there and then the really long tail of a lot of players who are not the leaders in the industry that we support in other ways. So we feel good the engagement. We think there’s more things we can do to expand our TAM within those applications as well.
David Silver: Okay. Great. And then last question would be big picture question maybe about China and not so much the lockdowns and reopening, but I think the — during the fourth quarter, the current presidential administration issued a broad set of restrictions on technology trade with China. And I was just wondering from your perspective how that may have affected your business or that of your customers. So my guess is not too directly, but maybe there were some indirect factors that you have to adapt to in terms of supply chain or customer — maybe your customers have to make some adjustments, and that’s extended some delivery dates. But just broadly speaking, how has the prospect for a longer-term set of restrictions on technology trade with China. How has that flowed through your thinking about operating your business and prospects, let’s say, over the medium term? Thank you
David Heinzmann: Sure. First and foremost, the enhanced restrictions that have taken place and even now that there seems to be agreement in the Netherlands and in Japan on further restrictions on tool sets and things like that into China. They have no direct impact on us. The technologies that we produce in China or sell into China, we tend to be on the power side, protection side of things. From a technology, they’re really a bit technical here, but they’re dealing with high voltage and voltage with stand, which means you operate in a much different way than you do in the high-end logic sort of applications. So lines and features in our world are quite large. Most of the restrictions that are taking place are on the more advanced, really small features and semiconductors that enable some of the advanced logic-based types of technologies.
It’s just not the world we play in. So from a direct perspective, it doesn’t impact us. From selling into the customers, I would say the areas are going to start to hit the hardest are really the high-end electronics and communication side of things, those sorts of areas. We sell into those spaces. Consumer-facing is not a big outsized portion of our business. So we don’t see that impacting as hard. So overall, I would say the challenges in the political — geopolitical environments are not a positive outcome. We’d like to see those be a little more compatible when working between the regions for the long term. But in the near term, we don’t see any meaningful impact to the business.
David Silver: Great. Thank you very much. Appreciate it.
Trisha Tuntland: Thanks for your questions, David. That concludes our Q&A session. Thank you for joining us on today’s call and your interest in Littelfuse. We look forward to talking with you again soon. Have a great day.
