So the rest is really the broad portfolio that we have. Image sensing, for example, remains a constrained technology. And given that is a very key enabler for autonomous driving in the future of mobility, that has customers really locking in supply in order to ensure that they have what they need as they start converting their vehicles to more ADAS or Level 2+ with more content. That’s the breadth that I can talk about across all applications that we target.
Thad Trent : Yes. And let me just add that the $4.5 billion of silicon carbide LTSA is through ’25. So it’s actually a much larger number that’s included in the in $16.6 billion of total LTSAs. But as Hassane said, it’s broad. The place that we are not doing LTSA, obviously, is the noncore business that we’re trying to exit. So we are intentionally trying to get out of that business.
Matthew Ramsay : Got it. That was helpful. As my follow-up, I wanted to ask on silicon carbide on a little bit of a different angle. There’s acute focus for obvious reasons on materials and yields and whatnot. But Hassane, I wanted to know if you could talk a little bit about the work that the company is doing and potentially the differentiation of your products in areas like using depreciated fabs to do silicon carbide rather than building new facilities or packaging, heat dissipation, size of modules, everything downstream from the raw materials and just how your company is positioned there? I see lots of conversation around the materials and not as much around the rest of the supply chain.
Hassane El-Khoury : Yes. Look, that’s a great question. So we’ve been obviously investing in brownfield. We’ve been very upfront about it. Given our manufacturing footprint and the optimization that we’ve been undergoing in the last couple of years, we’re very well positioned to grow in there as we want. So let me give you some color. We have a large-scale manufacturing site in South Korea in Bucheon. That is an existing highly capable, high output power fab that today manufactures IGBT. What we’ve been able to do over the last few years is transfer that IGBT technology to East Fishkill converted to 12-inch. So there’s benefit from that by itself, and then use an existing power fab with slightly fewer GAAP tools in order for us to run silicon carbide and start running silicon carbide in that fab.
So that’s what allowed us to ramp so quickly and with the CapEx efficiency that you’ve seen from us. That, for example, is on the front end. The same thing with the back-end. We have a very robust back-end footprint that is already leading in power and packaging for power semiconductors and modules. We’ve been able to retool those back-end factories in order to support our world-class modules that I mentioned in my prepared remarks for silicon carbide. So that’s on the front-end and the back-end. Now right after the material that we’ve been talking about, there is, of course, capabilities of wafering and epi, and that’s where we do it in the Czech Republic. We’ve been able to increase that capacity to match the output from our Hudson facility for substrates and to match the capabilities that our fab has been able to ramp to.
So all of these three sites are what is increasing proportionately in order to support our not only the $1 billion, but you can imagine, we’re investing in the ’24 ramp and the ’25 ramp based on those LTSAs. Those are coming in on track. Those are coming in on time. Obviously, equipment has been a challenge over the last few years, but we’ve been able to stay ahead of it given that we’re utilizing our existing manufacturing footprint. So I’m very proud with what the team has done because it’s not an easy task, but they have been able to do it, and that’s obviously a testament of the capabilities of the team to run such a complex manufacturing. And we’ll continue to invest in brownfield in order to support our long-term strategy.
