Hassane El-Khoury: Yes. Look, actually, the announcement doesn’t change my outlook. It actually — I would say, confirms it because if you think about it, this is a new platform and a much broader platform as far as volume. And therefore, it’s incrementally beneficial as far as demand is in the market, that’s just on silicon carbide. The other thing is when you start thinking, and I don’t want to talk about customers specifically. But as more and more, you can start thinking about silicon and silicon carbide, so IGBT plus SiC. This is a business that I’ve been talking about for really a couple of years. And you’ve heard me talk about how it’s always a customer choice and our ability to supply both is incrementally beneficial for us.
Therefore, when you start seeing silicon carbide, even with lower penetration of silicon carbide on a platform is still a net incremental silicon carbide in mass market vehicles. And that actually supports the concept that I’ve talked about that we are going to be constrained over the next few years.
William Stein: That’s super helpful. One other, if I can? Perhaps, Thad, you talked about the product revenue and margin of the exits you did during the quarter. Can you remind us how much is left of that? What sort of duration you expect for the exits to last? And should we continue to expect sort of this mid-40s gross margin level on the exits going forward? Thank you.
Thad Trent: Yes. So we think for the year, there’s a total of about $400 million of exits. This first quarter, we are at $47 million below our original expectations. We thought it was going to be higher than that this quarter. But we actually think we will still exit this throughout the year. I think this next quarter in Q2, we’re probably looking at about $85 million of exits and then the remainder of that to be in the second-half. So you’ll see these exits ramp additionally in the second-half. And the gross margin is — yes, it’s kind of in that mid-40% range of what we’re going to lose currently. And this is the stuff that’s price sensitive that — the reason we’re going to lose it is because we’re not going to go down that pricing curve, right?
So this is — these exits over time, we think these gross margins go back into the in the low range that we’re not willing to participate in. So yes, so for the year, about $400 million, and you can think about it as kind of the mid-40% gross margin range.
William Stein: Thank you.
Operator: Ladies and gentlemen, this does conclude the Q&A portion of today’s conference. I’d like to turn the call back over to Hassane El-Khoury, President and CEO, for any closing remarks.
Hassane El-Khoury: Thank you again for joining our call. As Thad mentioned, we look forward to seeing many of you at our Analyst Day. Our future is bright, and we look forward to sharing with all of you what’s next for On Semi. Thank you.
Operator: Ladies and gentlemen, this does conclude today’s presentation. You may now disconnect. And have a wonderful day.
