Christopher Rolland: Perhaps of the segments, the three that are going to be down, I was wondering if you could force rank perhaps even for the next quarter whether we should just have them all down. I know you said connectivity would be stronger for the year than the rest, but for the next quarter in particular.
Steve Litchfield: I don’t know, Chris, that I can stack rank them for you. I mean, we definitely continue to see pressure on the broadband and the connectivity businesses, I mean, our infrastructure business, we think, will be up next quarter and then industrial multimarket is a little more flat to slightly down.
Christopher Rolland: And then on the 5G part of infra in particular, it really kind of feels like an inflection quarter for you guys, which is great to see. I know you guys mentioned India, but I was wondering why this inflection from either like a geographic standpoint, is it India or why this inflection from like a vendor standpoint, and are you guys attached to one vendor in particular? Why this inflection all in one quarter?
Steve Litchfield: Chris, don’t forget. I mean, so we’ve got a big base of our business is backhaul, right? It’s not 5G. I mentioned in the previous remarks that — I mean, 5G is definitely increasing but it’s a smaller part of the numbers. The backhaul business has been driving it, it’s a pretty diverse — it’s a wide set of geographies that we’ve been selling into for a while. I would also emphasize there’s a big content increase as we start to ship more of our transceivers alongside of the modem. So that, of course, helps and that enables us to outpace the overall market growth that I suspect that you are seeing and comparing us to.
Operator: Our next question comes from the line of Karl Ackerman with BNP Paribas.
Karl Ackerman: Two, if I may. In the connectivity business, your cable MSOs are still sweating assets and going through sort of digestion phase. But is there higher intensity discussions of your customers broadening adoption of Wi-Fi 6 and Wi-Fi 6E that would give them differentiation and would also drive your content higher? I mean if you could talk about that as you think about the growth trajectory of connectivity over the next few quarters would be very helpful.
Kishore Seendripu: Well, obviously, our attached business is a significant part of the connectivity business, even as we’re developing traction in the third party router gateways. So Wi-Fi 6E is our current platforms, they’re shipping with the attachments. And we are proliferating our Wi-Fi in other markets where, for example, our cable docs is where we don’t have wearing some Tier 2 markets, we don’t have Wi-Fi attachment. But really the big growth in content comes from Wi-Fi 7 launch, which will be significant content expansion in terms of dollars. And that will be the next big leg of growth for connectivity in the operator segment. So I hope you understand that Wi-Fi 6 and 6E are already part of the operator deployments today and whatever growth we have with the increase in our Wi-Fi is going to come through expanding our Wi-Fi 6 attached in Tier 2 markets.
But the big growth in the Tier 1 markets comes through Wi-Fi 7, our WAV700 family as part of the E solution in the operator platforms.
Karl Ackerman: If I could pivot to your DSP business or opportunity. Kishore, you mentioned that that’s one of your most optimistic areas of your business. And so I guess if I could. I’m curious whether the current digestion occurring in optical transceivers has accelerated your discussions with cloud and module providers on your 800-gig DSP solution. And as you address that question, there has been much debate on the use cases of linear drives versus using a DSP. But you would, of course, be able to address both of them. But do you see linear drive plug roles impeding your design qualifications of your 800 DSP at all?
Kishore Seendripu: Let’s separate those two questions, because the latter one is the flavor of the day and the former is what people bet their money on. So our design traction is really primarily from the former basically, right? We have a solution on the DSP side that is superior to anybody else’s. We are the first 5-nanometer silicon production. We believe we have a significant lead on competition. So that’s where our traction is. With regards to the burning of the inventory in the data center for these DSPs accelerating our momentum. No, not at all. In fact, we have learned that the inventory in that channel also is significantly high. In this particular case, since we didn’t own a much business, we’d not see the impact of that.
So our design win traction is independent of what the channel inventory in that space is. The real four — almost all the data centers are now converging towards 800-gig solutions with 100 gig per lambda for each — 100 gig per lambda on the fiber over eight channels. So the inventory situation has got nothing to do with our traction. On the second part, the linear driver versus — is really a discussion that’s come with the recent OFC conference. And I really, really think that it’s very premature. And the data center people are really not betting their strategies on that. And this is really — if anything is going to happen, it’s going to take a couple of generations for it to really face any maturity, if not infant mortality, it doesn’t happen.
So I would leave it at that.
Operator: Our next question comes from the line of Ashley McCurry with Wells Fargo.
Ashley McCurry: This is Ashley McCurry on for Gary Mobley at Wells Fargo. First question being, it looks like your gross margin guide is a little wider than usual. Is that representative of any uncertainty in product mix for 2Q or if not, what are the drivers of that?
Steve Litchfield: So no, I don’t think so. On the gross margin side, I mean, look, there’s plenty of uncertainty in the world right now. So I won’t go there. But as far as gross margin goes, kind of the midpoint, it is primarily driven by mix. We do continue to see infrastructure holding up very well that the higher gross margin kind of product line. And so we do feel confident that we’ll continue to see an improvement similar to what we saw last quarter.
Ashley McCurry: And then just as a follow-up in terms of the SIMO acquisition. Do you guys have any visibility into SAMR’s approval process? And is there any qualitative comments you guys can give that gives you comfort in that mid-calendar year ’23 close?
Kishore Seendripu: So I kind of reviewed this in our prepared remarks. I don’t have a whole lot to add, kind of we remain confident on track. I think things are moving as expected on the SAMR front. And hopefully, we can update you soon on that.
Operator: Our next question comes from the line of Suji Desilva with ROTH Capital.
Suji Desilva: I’m curious if the unit attaches of 6E have cut over from 6 already or if not, what the timing would be? And if it has, when would you expect the Wi-Fi 7 unit attaches to cut over in terms of units versus 6E?
