So you see it’s better. It’s not yet on target. We are not yet in a position that we have visibility to serve everything we want, but we are coming closer. Now you might be confused with the high DIO and still me saying that we can’t serve Automotive. The matter of the fact is that if you would pass it the DIO in two segments. And I mean, I will not give you numbers, but the auto part of it so the product which is specific to the lease in Automotive is actually well below target. So it’s just very variable between the segments, and it’s not fungible, as you know. Now that leads me to the second part of your questions around NCNRs. I gave you one example earlier where we have very strictly executed NCNRs and that was the Mobile last year, which indeed is a bit of a headwind now getting into this year because product was not fungible.
I mean it’s customized in software, so there was no way to let customers of the hook. Going through this year, there is not a one-fits-all answer, Joe. So I’d say we are flexible if the product is fungible. I mean we do not force one customer to absolutely take it if we can at the same moment, sell the same product to somebody else. I mean, that wouldn’t make sense. We are very strict if it would go against any take-or-pay liabilities, which we have to our suppliers. I mean there is no way we would let our customers off the hook. Then it depends on overriding commercial agreements, which we have with customers, in some cases, which might be of forcing functions. And then – and that’s especially in Automotive, which is a large part of our NCNR backlog.
We are working with ODMs. So if a Tier 1 comes to me and says, I want to discuss about the NCNR level, I say, okay, then we discussed together with your end customer. And we want to understand if that is in the best interest also for the end customer which puts quite a bit of pressure on the system and actually enforces some of the NCNR through that channel. So you will see – I cannot say the 100% always in force. We would not do this where you would see that we create a problem for ourselves later. I mean that’s the same philosophy, which we are applying with the channel inventory. Why would we? I mean that wouldn’t be smart. But in many cases, we still do, given the dynamics I just mentioned.
Joseph Moore: Very helpful. Thank you.
Operator: Thank you. And our next question comes from William Stein with Truist. Your line is open.
William Stein: Great. Thanks so much. The last couple of questions in particular are very helpful in understanding the sort of shape of demand. I’m hoping maybe we can talk a little bit about longer-term competitive dynamics, in particular, in the Automotive end market, you seem to be doing well in these growth areas. But Kurt, I’m hoping you can talk more about your position with the emerging Chinese OEMs, which especially in EVs have started to deliver some very strong growth. Can you compare your competitive position with those OEMs relative to how you’ve done historically with the bigger global ones? Thank you.
