Rafael Lizardi: Yes. So let me address that. First, CapEx. We’re very pleased with our CapEx has come in. We did about $1 billion in the quarter. We talked a couple of months ago that we expect about $5 billion per year for the next four years, that’s an average. So some years will be less, some years will be more. So $1 billion per quarter. That’s obviously a $4 billion run rate for the year. So somewhere between $4 billion and $5 billion for this year would be about right on the CapEx. And that’s coming in just as expected. Depreciation, we — what we talked about a couple of months ago at the call was we expect it to increase to $2.5 billion at some point in the future in 2025 on or about 2025. We — but this year, we expect that trend to be below linear.
So instead of $500 million increase per year from the starting point of ’22, it will be less than that in 2023. I think I’m bridge at the specific number on that. We’re not disclosing that at this point, but I would just tell you look at — we just did $265 million for the quarter. So you can do your own math of — that was $249 million in the previous quarter. So you can — you can think of that and come up with a decent approximation of where that may end up, and we’ll give you more details, obviously, in subsequent quarters. Do you have a follow-up?
C.J. Muse: Yes, please, a longer-term question. One of the overriding themes for the last couple of quarters on the semi-equipment side is the vast spending by lagging edge domestic China with an obvious focus kind of on the 90-nanometer plus. But actually I shouldn’t discount the 28-nanometer plus part of the world. So as you think about regionalization and as you think about perhaps a rising kind of competitor in the China landscape looking out over the next five-plus years, how are you thinking about the pros and cons and how you’ll compete kind of in that environment? Thank you.
Dave Pahl: Yes, C.J., thanks for that question. I’d say that when you look at our products and markets, we’ve got 4 competitive advantages that we continue to invest in, I think that make us stronger and different than our competitors. And we’ve talked about them before, right? The first is the manufacturing and technology owning and controlling those assets we think will be growing important to where they are in the world. Also, we believe, will be a benefit to us as well. Second is the broad — our broad product portfolio. So competitors that we have around the world, especially in China, usually only compete with us in a very, very narrow slice of our product portfolio. That said, we’ve competed with those companies, in some cases, for a couple of decades now.
So competition there isn’t new. And so they’re good competitors. We can learn from them. We’re not dismissive of them, and we close — we very closely track and I believe the number somewhere around 75 different competitors around the world that we’ll compete with. The third competitive advantage is the reach of our market channels. And especially when you look at some of the smaller competitors in China, they just don’t have the reach. They don’t have the breadth of portfolio that attracts customers for engagement and that just gives us better insight. And then the last is diversity and longevity. So there’s not one market or technology that we’re dependent on to provide market share lift. Now we’ll be dependent on all of them. And sometimes in the short-term, that may favor one competitor versus another.
But longer term, as we compete broadly in all the markets, we think that will translate into long-term and sticky share gains. So overall, we’re pleased and excited about where we are from a position standpoint, whether we’re looking at our traditional competitors here in the U.S. for Europe and as well as those in China. So thank you very much. And I’ll turn it over to Rafael to wrap this up.
Rafael Lizardi: Yes. Thanks, Dave. Let me wrap up by reiterating what we have said previously. At our core, we’re engineers and technology is the foundation of our company. But ultimately, our objective and the best metric to measure progress and generate long-term value for owners is the growth of free cash flow per share. While we strive to achieve our objective, we will continue to pursue our three ambitions. We will act like owners who will own the company for decades. We will adapt and succeed in a world that’s ever changing. And we will be a company that we are personally proud to be a part of and would one as our neighbour. When we’re successful, our employees, customers, communities and owners all benefit. Thank you and have a good evening.
Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.
