Operator: And our next question will come from Vijay Rakesh from Mizuho.
Vijay Rakesh : Hassane, great guide here, given all the concerns. On the inventory side, just a quick question. Your inventories were up only 3% sequentially, which is probably the lowest among all the analog guys. Just wondering if you can give us some color on how inventories look in the channel and at the OEM level?
Thad Trent : Yes. Look, we’re — if you look at our inventory on our balance sheet, in terms of days that went up, as I mentioned, there are 26 days of bridge inventory for the fab transition in the silicon carbide ramp. If you look at that quarter-over-quarter, our base inventory, not the strategic portion of what the transition, the bridge is actually down. So you can see, we’ve talked about reducing wafer starts from earlier in the year, starting in Q2, and you can see that coming through our inventory. So this is just that our tight management of inventory. At the same time, in the channel, we’ve been managing it very tight as well. So we took inventory in the channel down by $10 million sequentially. It’s at 7.3 weeks. We plan on running that really tight as well.
We’ve been in that range for quite a while here, and we continue to go through the softness we’ll manage both internal inventory and channel inventory very tight and just be cautious in terms of what we’re seeing out there.
Vijay Rakesh : Got it. And then on the silicon — sorry, go ahead.
Thad Trent : No, that was it. Go ahead, Vijay.
Vijay Rakesh : Yes. I know the silicon carbide side, just wondering what is — if you can give us some color on what’s driving the wins? Obviously, you compete with a lot of well-established suppliers on the silicon carbide side. What’s driving the events and how defensible is it?
Hassane El-Khoury : Well, we’re an established supplier too for silicon carbide. So that puts us in that bucket. But look, I remain consistent in why we’re winning. A lot of people focus on technology as, call it, the silicon carbide wafer technology or something before that like substrates. I always couple the competitive advantage we have on technology as encompasses the wafer technology, but also the packaging technology. Any power semiconductor for us to be competitive and really win in the market, you have to have both. The best power silicon or silicon carbide die, if you can’t get the heat off of it in a very light and efficient manner, then it’s not going to work in the whole system. So we’re able to do the best, highest power highest density power in a very light and cost-effective package using our road map and our innovation.
Customers have validated that and customers have signed up for us. So the combination of the power, call it, semiconductor or silicon carbide plus the packaging co-developed is what puts us in the lead and customers are obviously seeing that benefit and signing up with us for those long-term agreements. So you have to have both, and we have the best of both.
Operator: Our next question comes from Joseph Moore from Morgan Stanley.
Joseph Moore : Thanks you for all the clarity on the silicon carbide customers. I guess when you look at some of those that have also been announced by competitors or associated with competitors. How is that business being split? Is it one vendor? Does the onboard charger, another uses traction inverter? Are there cases where people are multi-sourcing within those individual components?
