Operator: And our next question coming from the line of Christopher Rolland with Susquehanna.
Christopher Rolland : I guess, first of all, in broad markets, if you can — you had some great color as to how you break those out into kind of sub-segments. I would love to know kind of what those look like, how they’re trending. And then also, you alluded to the gross margin benefits as we move through the year. I don’t know if you can talk to the broad markets effect on gross margin as we move through the year.
Kris Sennesael: Yes. So as it relates to broad markets, roughly 40%, 45% is IoT, more consumer IoT, right, where we provide connectivity solutions in tablets, in wearables and PCs, your home connectivity with routers and all the access points that tap into that. In that market, the inventing — there has been an inventory correction for multiple quarters, but we are getting towards the end of the inventory correction there. In addition to that, we see strong growth in that part of the market due to an uplift in content as we transition from WiFi 6 into WiFi 6E and 7 type of solutions that has a substantially higher RF content of Skyworks inside. The next 30%, 35% is infrastructure, cloud, data center, enterprise networking. There is definitely an inventory correction going on in that part of the business that has started in the December quarter and will continue for a couple of quarters here.
Nevertheless, that as well. I think in that market, we’re very well-positioned with some key customers, including our timing solutions for data centers. And then the last part is 20%, 25% is automotive and industrial. There as well, I think we’re well-positioned. But you’ve heard it from many of our peers, there is an inventory correction going on I don’t think it will be a long drag-out inventory correction. It’s probably December, March, two quarters of an inventory correction. And then again, we are very well-positioned in that market the connected car that eventually become an autonomous car as well as EV, where we play with our power resolution solutions. And so again, when you put it all together, December is the bottom for our broad markets.
We start seeing some sequential growth in March and beyond. And as you know, yes, those markets typically have a higher gross margin compared to broad markets, and that will help us to lift the gross margin.
Christopher Rolland : You guys already talked about AI smartphones, but also you called out AI-enabled workloads driving cloud and data center upgrades. You also talked about 800-gig and this being an opportunity for you. Is that all related to your timing business from your acquisition? Or are there other ways that you’re leveraging infrastructure around AI as well?
Liam Griffin : Yes, largely through the infrastructure business that we have and some of the technology that we brought forth in our Silicon Labs deal, that’s driving new vectors for us in the industrial markets and the data center markets, and it’s a really vibrant growth source for us, and there’s a lot of room to grow there as well. So lots more to do, but we’ve been making some great progress in that area.
Operator: Our next question is coming from the line of Edward Snyder with Charter Equity Research.
Edward Snyder: I’d like to touch on, if we could, later this year, especially in mobile, it seems pretty clear at this point, given your largest customer scrambled to get their thing done by 2025 that most all attention on that and that we’re going to have kind of a — I don’t know the best way to put it, but basically, kind of on hold — not on hold, but a repeat of what we’ve seen before, nothing — not much new in the new one and the competition scrip. So basically, I would expect in the fall, you’re going to see more competition or you already know it now. Sure Qualcomm going to talk about a lot on Wednesday. So I’m trying to get a feel for the profile of your mobile business in the second half of the year. It sounds like it might be weaker than we normally since Qualcomm share got to come out of somebody.
If you could maybe characterize or just without getting into too much detail about what should we look at in terms of the mix in the second half you’re already talking about broad markets being much stronger. The mobile by implication is going to be a little bit weaker. And is that mostly just organic growth? Or is there going to be some share loss? Or how do we think about that? And then I have a follow-up, please.
Liam Griffin : Yes. Well, of course, Ed, we’re deeply engaged with mobile in all angles, right? So we have a broad set of technologies that are applicable to multiple customers, including the largest. And that’s our craft. That’s the largest part of our portfolio. We’re growing across other markets, but certainly the know-how that we have in RF, the ability to do things in-house, as you know, and the vectors that we put forth to drive this company. So we’re all over it at every angle, and we’re continuing to work on market share and new innovations. Delighting our customers, over current consumption, expanding the reach, doing a little bit more in the Android markets that we’ve kind of hinted around that. We’re going to continue to execute there and still drive the best performance solutions that we can.
Edward Snyder: Okay. Maybe I could follow up with a different angle here. You’re going to grow in Android, you’ve kind of been under-earning there for several years. I think on purpose because you’ve done very well outside of that market. R&D is going up to in order to address the products yet because it’s a different product market. But margins typically are lower in that whole market. Competition is a lot more intense one, should we expect to see revenue growth in the second half? It’s a little early, but revenue growth the second half of the year, whether it’s on an inventory snapback or new product wins in Android try to take up some of that slack. And then, Kris, maybe you could articulate how that — how you’re going to offset the margin, the natural margin dilution of Android over, say, the U.S. customer and then, of course, all mobile dilution against broad markets in the second half, if you could, please.
Liam Griffin : Yes. So yes, we’re with you on that. So there’s a lot of opportunity for us to be more aggressive across the Android ecosystem. It’s not just China. You get names like Google and Samsung, they are tremendous opportunities that we can drive. We’re built for this kind of stuff. And we have an end-to-end process that we continue to improve and refine at every turn. It helps our customers. It helps our gross margin our utilization. We have incredible factories, homegrown stuff that we have here in Irvine that really, really is the solution of choice as far as I know, with our technology know-how and the ability to be flexible and customizable to each account. And I think that’s an asset for us, and I think we’ll continue to drive that portfolio. .
Kris Sennesael: Yes, as it relates to gross margin, the gross margin profile of our mobile customers is on or about the same. And part of that is because now we are somewhat selective. We are not sliding down in the mid or low end of the market. We stay at the high end. We stay at the high-performance part. And in that part of the market, you compete based on performance. It’s not a price competition. You compete based on performance. And again, that’s why gross margins are somewhat the same in — with all the customers in that segment.
