Dave Pahl: Yes. Chris, as you know, you can’t pin it on one thing, especially we’ve got well over 100,000 customers and 80,000 products that we’re managing. As Rafael was talking about, building inventory, we’ve got essentially all of our catalog products, or almost all of our catalog products, now immediately available on ti.com. And our objective with inventory and the capacity we’re putting on place is to have our customer service metrics remain high, which means keeping lead times stable. So you know I think in some markets we’ve seen customers that have told us that they were planning and have built their capacity and their inventories to grow at 25% in the coming year and they showed up and their plans changed and they’re only going to grow 10%, right?
So they told us they won’t be ordering product for some time as they, you know, equalize those numbers. They’re still going to have healthy growth, but it’s hard to put that across all of those 100,000 customers into one short concise statement. Have a follow on?
Chris Caso: Yes, fair enough. And if you could help us with the impact of the underutilization right now, how much of a headwind is that providing right now on a cost to sales basis? And then on the other side of this, when we finally get to a recovery, what will be the right way to model this? Will there be a bigger snapback as some of the underutilization comes off or do we just kind of go back to sort of those mid-70s incremental margins and the way back up?
Rafael Lizardi: Yes, so what I would tell you first, we don’t quantify underutilization, but you can fairly reasonably back into it just looking at our numbers, our midpoint or range, our midpoint and then consider the depreciation, expected depreciation increase and it’d be relatively straightforward for you to back into something reasonable for first quarter on the underutilization impact there. Now after that, it’s all going to depend on revenue and revenue expectations because of course, depending what those are in the second-half of the year, let’s say 90-days from now, then that will be a big factor in determining how the factories will run. But the bigger picture is, you know, all this deployment of CapEx that we’re doing is all on 300 millimeter, which has a 40% cost advantage versus 200 millimeter.
Several questions people asked earlier, it has ITC benefits on that. So it’s coming in at 25% discount on the ITC and we’ll see how much we get on grants. So they fall through on those investments for many, many years will be very positive, I would say. So with that, Dave?
Dave Pahl: Yes, thank you, Rafael. Thank you all for joining us. We look forward to sharing our capital management update next Thursday, February 1 at 10 a.m. Central Time, as I mentioned earlier. And a replay of this call will be available shortly on our website. Good evening.
Operator: And this concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.
