Chris Caso : Got it. It’s helpful. Thank you and thank you for coming back to my question.
A – Ganesh Moorthy: You’re welcome. Thanks Chris and welcome back.
Operator: Our next question is going to come from Timothy Arcuri with UBS. Your line is open.
Timothy Arcuri : Thanks a lot. I had a question on cancellations. And in the past or you know, you’ve been working with customers on – allowing push outs. But in the past, you’ve sort of – you know, you’ve been offering customers to cancel for a fee. So if you want to bring down backlog, are you sort of increasingly forcing cancellation versus just allowing customers to push out shipments? I guess if you want to bring down backlog, one quick way to do that, force them to cancel versus just allowing them to push things out. Thanks.
A – Ganesh Moorthy: You know, we’re not intentionally trying to bring backlog down. We are trying to help customers who have backlog placed on us, but would prefer to receive it, in some cases, later than what it’s presently scheduled for. Backlog will – over time has been coming down, as the fever of what was in 2022 and 2021, where people are placing huge amounts of backlog out in time. It starts to settle out, especially at these time are starting to come in. As the industry starts to normalize, backlog will get back to what it used to be normally, pre-COVID, and so that’s really what’s happening with backlog. We’re not trying to force it down in any way.
Timothy Arcuri : Thanks a lot. And then just as a quick follow-up, in China – do you think any of the weakness in China – are you seeing examples of locally sourced product that you’re being displaced by? I know that you don’t have very much exposure there. If you net out the proprietary stuff, it’s probably only 5% that’s kind of subject to some sort of going local, but are you seeing any of that? Thanks.
A – Ganesh Moorthy: In fact, it’s a timely question. We just had a review with our China team here yesterday on exactly that topic, and there is little to no loss to the local China producers that we’re able to see, either in design or in things that are in production today. So no, it is actual consumption that is weak. There is a lot of uncertainty in China with respect to what the amount of debt people are carrying are, what kind of stimulus is going to take place. And I think there is a consumption that is waiting to happen, and I hope it will open up at some point in time. But at the moment, I think things are uncertain enough that consumption is being held down.
Timothy Arcuri : Thank you so much. Thanks.
Ganesh Moorthy: Welcome.
Operator: Our next question is going to come from William Stein with Truist. Your line is open.
William Stein : Great. Thank you. I wanted to address the similar question about cancellations that we understand with the PSP and the NCNRs, you’ve been much more flexible, at least somewhat flexible on rescheduling, but much less so on cancelling, which I think we all respect. But when we look at the growth rates of a wide variety of competitors, they’ve seen this downturn.
Operator: Okay, William Stein’s line has disconnected as well. So, our next question is going to come from Janet Ramkissoon with Quadra Capital. Your line is open.
Janet Ramkissoon: Hi Steve, Ganesh. There’s somewhat of a different tone for this question. Could you provide a little bit of color on your efforts with the RISC-V and the PolarFire SoC FPGA program? Anything you could share with us about design-win activity and markets where you’re gaining traction with this program? And any sense of when we’re likely to see any real revenue growth from this area? My understanding is that there’s a lot of interest in RISC-V for embedded applications.
Ganesh Moorthy: Sure. Thank you, Janet. So, we were among the very early proponent of using RISC-V for our FPGA solutions as you mentioned. Those products have been in production. They are ramping. In fact, the PolarFire family as you mentioned it, it’s the fastest-growing FPGA that we have, if you look like-for-like, what is it doing after X amount of quarters and where it’s at. It is winning in the traditional markets that FPGA, that came to us from Microsemi was winning, which is in aerospace and defense, some in the communication space. But also increasingly it is winning quite significantly in industrial, and it is winning in some automotive applications as well. So quite broadly present, it is doing exceedingly well. It is contributing to the results that we have been quoting on FPGA, both last quarter for the fiscal year and this quarter to reflect that it is hitting new records every quarter, and we are very, very optimistic about how RISC-V based FPGAs, along with all of the other elements that we have integrated on the solution, is going to play out.
