So I think it’s early to talk exactly what the impact’s going to be. Those are big numbers. They’re bound to have an impact in each of these areas. Sustainability or I should say renewability and solar in particular. Upgrading home appliance energy efficiency and also the EV roadside charger infrastructure but I think time will tell exactly what that impact will be as we see those dollars flow to consumers, to our customers, and then ultimately to our business.
Ross Kesselman: Got it. I know you’ve mentioned previously that there’s been a kind of a constraint on the silicon carbide products. Have you seen any indications of improvement in that area?
Gene Sheridan: Yes, I’d go back to the long-term agreement we signed last quarter that now starts this quarter and it translates into increased revenue capacity to support that revenue starting next quarter. And that’s a 5x increase. It’s not a step function, but it’s 5x from middle of last year when we acquired GeneSiC and ramping throughout this year and into next year. So that gives us a lot of headroom to do more if we can do it.
Ross Kesselman: Got it. Thank you so much for the additional color.
Gene Sheridan: You bet. Thank you.
Operator: Natalia Winkler with Jefferies, your line is open.
Natalia Winkler: Yes. Hi. Thank you guys for taking my question. So the one I had with for Eugene, I just wanted to understand this joint venture acquisition a little bit better. Is it fair to assume that it’s moving you guys to the parity with silicon in terms of pricing faster against solutions or is that kind of accelerating that parity for the higher voltage application? Thank you.
Gene Sheridan: Yes, thanks Natalia. No, it’s a great question and a good observation. You’re exactly right. Well, what we’re doing there is not only developing leading edge analog controllers that are optimized for higher frequency GaN and silicon carbide, we’re actually co-packaging them with our optimized GaN. When you combine that with the cost reduction and performance improvement of Gen 4, that’s also roll rolling out simultaneously, you get a really nice improvement in performance, reduced size footprint, improved power density, but also helping us on that bomb cost. And it is a factor driving us to that system cost parity compared to silicon, specifically around mobile chargers, consumer adapters. And I also mentioned the home appliance auxiliary power supplies.
Natalia Winkler: Awesome. Thank you. That’s really helpful. And then the other one I had was about the TSMC, Gene, if I understood correctly, you mentioned that you guys saw a 6% increase this January, January, 2023. Is that fair? And then how €“ like, I guess I think historically we’ve heard of maybe some potential kind of annual increases in November. How should we think about that dynamic? Do you have some kind of €“ already expected price increases or contractual ones?
Gene Sheridan: Yes, that’s right, 6% in January. I think you heard that from probably many suppliers. It’s certainly not unique to us in any way we had alluded or anticipated it in earlier quarters. There was a prior 20% as the whole industry discussed and felt. But we do see these as one-time events that are unique in the supply and demand, unique situation for the industry. Obviously the whole industry is shifting. I think it’s shifting to a more balanced place and we look forward to a more healthy cost reduction environment. And that’s certainly what we expect going forward. We certainly don’t anticipate any further cost increases and don’t have any contractual agreements that would suggest any cost increases.
Natalia Winkler: Understood. Thank you very much.
Gene Sheridan: Thanks Natalia.
Operator: Ross Seymore with Deutsche Bank, your line is open.
