Vivek Arya: Thank you for taking my question. I think in the prepared remarks, you said customers continue to reduce inventory levels, but you are also guiding Q2 sales to be up 4% sequentially. So my question is, should we think of Q2 as kind of a normal seasonal quarter? Just any more color on what you are seeing real time. Are we past the industry inventory correction? Are we kind of getting back to some semblance of — on normalcy from a demand perspective? Any other color you could give from an end-market or geo perspective. Just — you are the largest, right most influential vendor in the market. So I think, your perspectives would be very useful to understand where we are in the inventory and the broader demand cycle.
Dave Pahl: Yes. Vivek, let me start with what we saw happen in the last quarter because I think, it’s helpful. First, we saw personal electronics was the first market that went into the correction. It really is — was the first to come out in the last few quarters, I’d describe it as behaving more seasonal. If you go to the other end of the spectrum, we have, had industrial, which has been declining sequentially from some time. And over the last few quarters, we’ve been talking about how there’s some asynchronous behavior inside of the 12, 13 sectors that we have there. That continued inside of the quarter. So we have got some of the later-cycle sectors that are continuing to decline and declining at double-digit rates. But there are some that are beginning to — begin to slow in the declines and even a couple that grew sequentially.
So that I would just describe as being more mixed this quarter, which is certainly different than last quarter. So — and if you look — historically, second quarter is a seasonally strong quarter for us. So it’s not unusual for us to see sequential growth sequentially. Do you have a follow-on?
Vivek Arya: Yeah, thank you Dave. Maybe if I press a little bit on that. For Q2, specifically industrial and automotive, do you think — is your assumption that customers will continue to work down inventory? Or do you think that they have worked down most of the inventory and we are getting back to some semblance of what normal demand looks like for TI in Q2? Like what does your guidance actually imply that are we below seasonal? Are we seasonal? Or — are we something different?
Dave Pahl: Well, again, we’re not in the practice of giving guidance by end-market. And — but even inside of last quarter, as we looked at it inside of industrial, there obviously were some customers that are nearing the end of that inventory depletion cycle. So as you know, we don’t — we try to be very cautious and not to try to predict tops or bottoms or those types of things and just report what we see and just stick to the facts. So thank you Vivek. We’ll go to the next caller please.
Operator: Our next question is from Thomas O’Malley with Barclays. Please proceed with your question.
Thomas O’Malley: Hi good afternoon. Thanks for taking my question. Mine is in regards to China. 2023 data came out recently, and it looks like some of the larger North American players didn’t really lose share despite some concerns on the trailing edge that you would have some increased China competition. Can you talk — has there been any change in the way that customer behavior has kind of trended over the last couple of months? And can you talk about just that competitive environment? Are you seeing more players there? Are you seeing players that you didn’t see before? Any color on China would be super useful. Thank you.
Dave Pahl: Sure. Yes. Thanks, Tom for that question. And I’d say, no change over the last couple of months. But I think, certainly over the last few years, there’s many things that are changing in China. We’ve got very competent local competitors there as well as there’s subsidized capacity going in place. And when you compare that to five years or 10 years ago, is it harder to compete there? It certainly is. But again, I would not describe that as a competitive landscape that’s changing overnight. And we’ve talked about that for some years. So China is an important market for us that — it continues to be a growing market. And we can and will compete there to support our customers. So our competitive advantages, whether that’s our manufacturing and technology, the breadth of the portfolio, the reach of the markets all [serve] (ph) us very, very well in China. Do you have a follow-on?
Thomas O’Malley: Yes. Just on auto particularly. I know that you’re not guiding the out quarter, but just conversations that you’ve had since you last updated us with those customers? I think you just mentioned that inventories are coming down. But through the pandemic, there was a kind of change of stated ordering patterns of just-in-time to just-in-case. Do you see that kind of persisting — or do you think that we are moving back to a situation in which customers really want to have much lower inventory on their balance sheet. Obviously, you have a unique supply chain, but just any thoughts on just the auto environment, particularly through the last several months. Thank you.
Dave Pahl: Sure. Yes. Thanks again, Tom. I would say that many customers and especially those in automotive, as they went through and dealt with the disruptions that they had in supply chains actually we are very thoughtful in looking at where their supply is coming from, what things that they can do differently well beyond just carrying extra days of inventory. And when they went through that analysis, I think many found that they have a pretty significant dependence on wafers coming out of both China and Taiwan. And what they described that to us is geopolitically dependable capacity is what they’re seeking. And again, we have talked about that before in our capital management updates. We believe that — that’s going to be highly sought after it is — we are seeing that today. And so I think, we are in a position to be able to support customers, and that growth that will come from that. So thank you Tom, we will go to the next caller please.
