Steve Litchfield: I don’t know about specific customers. I mean, we definitely have some key wins like our Tier 1 operator that’s ramping some of our fiber products. I mean that’s very exciting, so early days. We had talked about that happening kind of in the first half of the year. So that’s something that’s probably exciting. We’ve got all your our typical customers on the wireless infrastructure side that we’ll definitely see some nice growth in the first half of the year as well. And then maybe pointing to Kishore’s comments a little bit earlier, we’re engaged very closely with a lot of the operators. And as a lot of those decisions are being made for future platform deployments, for fiber or soon to be all the Wi-Fi 7 platforms as well.
Ananda Baruah: Okay. Got it. That’s useful. And then, Steve, just I guess on the gross margin. I guess, what are the kind of pushes and pulls as we go through the year here that can move the margin around? Do you expect — I mean — and do you expect potential for much movement? And if they were to move, what would be the thing?
Steve Litchfield: Look, I think we had — everything working against us in Q4. I think that definitely improves. I mean, we showed that in the guidance. So, I think I do see improvements. I don’t see big swings as we kind of get through the year. I mean, the mix shift itself doesn’t change that much in the first half, getting infrastructure up and going and seeing some of our backhaul products, transceivers, modems, et cetera, start to ramp will definitely benefit the gross margin line. But I don’t know that we’re not there with a breakout yet much higher, just kind of given some of the industry dynamics, but then also getting the cost structure in line from our standpoint, right? So, we’ve talked a lot about Wi-Fi 7 highlighted that that’s kind of that first single monolithic chip that we can get out. Cost structure is much lower. And so as that business starts to ramp in the second half of next year, it can be a more meaningful contributor.
Ananda Baruah: That’s very helpful. I appreciate it. Thanks.
Steve Litchfield: Thanks Ananda.
Operator: Our next question comes from Suji DeSilva with Roth Capital Partners. Please state your question.
Suji DeSilva: Hi, Kishore. Hi, Steve. So, I’m looking ahead to the Wi-Fi WAV700 for the Wi-Fi 7. What do you think your design win share would be in that as those start to come in versus the current Wi-Fi 6, 6E, will it be similar? Or is there a potential for further gains there?
Kishore Seendripu: So, Suji, look, our attach rates on our own platform is Wi-Fi 6, 6E is really not even not close to 50%. So, it’s less than that. So, the potential growth is much higher as Wi-Fi has become sort of the mandatory attachment to all the broadband access sort of gateways or even smaller, lower tier units. So, I believe that the attach rates will increase quite a bit. And the Wi-Fi 7 design assignments, allocation have not yet happened yet. I think they happen towards the end of the year. And so, there is no such what I call slack fest in the non-consumer markets, and we are not in the consumer markets, per se. We do in the client side of the market. So, I think, in our case, it happens at the end of the year when the sort of the — but the bids, the RFPs I talked to you about where all these operators are looking at next-generation platforms, Wi-Fi 7 is an essential part of it.
So, we’re all right now, putting in bids that include pricings and things like that.
Steve Litchfield: So, just to follow on that, Suji. I mean, we talked about those attach rates. I mean, definitely, in some of the markets like cable, we have a higher attach rate, but we’ve definitely got much more room to go and Wi-Fi 7 really gives us the ability to go up and get that. I’d also just remind you, WiFi 7 ASP increases will be significant over Wi-Fi 6.
Suji DeSilva: Thanks Steve. Very helpful color. Maybe the next question is for you, Steve. Just going back to the debt related to the planned Silicon acquisition. You talked about some potential to restructure or revisit that debt in the rates there. Can you just elaborate on what that opportunity is for you guys? And whether the deal is somewhat contingent on that? Or it sounds like the deal is financed, you said. So, I just want to get clarity there. Thanks.
Steve Litchfield: Yeah. So, sure. Yeah. The deal is financed. I mean, I said in our prepared remarks about us continuing to work on increasing — or improving the cost of capital there. So looking to kind of move into the pro rata market, where we can pick up some additional share. We’ve had some interest. It comes at slightly lower rates. And so that’s one of the things that we’re doing to lower the overall debt cost. Clearly, interest rates have gone up. And while we’re very confident on the synergies between the two organizations, the cost savings that can be achieved, but ultimately, the long-term growth that we can achieve is very encouraging and exciting. At the same time, in the short-term, we got to make sure that we’re very disciplined around spending, especially in some of these slower periods that we’re going through right now.
Suji DeSilva: Great. Thanks Steve.
Steve Litchfield: Thanks Suji.
Operator: Thank you. Our next question comes from Richard Shannon with Craig-Hallum. Please state your question.
Richard Shannon: Hi, guys. Thanks for taking my question as well. Kishore, maybe I’ll ask you to peel the layer back here a little bit on optical PAM4. Especially looking at 800 gig, can you kind of characterize the breadth of your engagements across hyperscalers? I assume that’s really the more important point of influence here. How you’re doing? Are you expecting kind of first or second share position there? And then what kind of time frame do you expect these wins to be awarded and eventually to ramp?
Kishore Seendripu: Okay. So, I think that the various hyperscalers ramp into the 800 gig PAM4 or 400 gig PAM4 or 2 by 400 gig PAM4 or even 2 times into 1.6 terabit PAM4, it depends. Everybody has a different plan. Having said that, so — and everybody is different in the time line with some of our leaders, some are followers. So here on the 400-gig side, we — that is well in the process. We’re working with two hyperscalers and their OEMs to get design-ins and called. And on the 800 gig, it is the new one, we’ll be the first — the leader in that in terms of as and when the launch plays out. Of course, we don’t have incumbency, but we have the best product, and we have got good traction with OEMs that supply to and a couple of two hyperscale data centers, right?
They are the leader. So you just follow them. And sometimes, one of them really expects to have a custom product for themselves, which is — we have a lot of sync on that one. But still, from where we are, it will be a substantial opportunity for our growth. And we expect initial ramp shipments to start sometime in the second half of this year, probably latter than earlier. But however, we would have the visibility much earlier. We are shipping pilot qualification quantities right now and that has to go and flush through the entire chain. So it really sets up a very nice 2024. And I would I will look at the €“ what happens 2023 as milestones to — and pointers to what happens in 2024 and beyond.
Richard Shannon: Kishore thanks for all that. It’s great. Second question on the fiber business here as you’re expecting your nice growth here this year. Maybe you can kind of give a little bit more color to the geographical split here. I know you’ve got a Tier 1 operator here this is in North America. But wondering if we’re going to see any material contribution outside the U.S., whether in Europe or Latin America or other places can you characterize that, that would be great. That’s all for me. Thanks.
