But — and 1.6 T is probably already going to be cutting in at the end of 2024, certainly in 2025. But I couldn’t tell you exactly at 800 what the SiPho percent of sales will be. But I think at 1.6 T, it’ll be very substantial.
Richard Shannon: Okay. That sounds great here. And you also called out in Silicon Photonics having six of the top 10 pluggable module suppliers as customers here. I get two questions around this. Do you see it…
Russell Ellwanger: What I said, I said is SiPho engagements. There might be more that are customers, but not with SiPho. What I talked about specifically was six of the 10 top players that were engaged with SiPho and not that all 10 are engaged with SiPho themselves. But six of the top 10 were engaged with SiPho. I didn’t say how many are our customers specifically. But at least six of 10 are our customers. Maybe more are our customers outside of SiPho.
Richard Shannon: Okay. And it gets to that point here. Do you see the potential for seeing that number increase here as you go to 1.6?
Russell Ellwanger: Yes, sir.
Richard Shannon: Okay. Excellent. Great to hear.
Russell Ellwanger: I actually think it’s already increased.
Richard Shannon: Okay. Great.
Russell Ellwanger: I wasn’t sure, so I didn’t say it. Whereas to say six was a sure bet.
Richard Shannon: Okay. All right. Fair enough. Wonderful. I guess a quick question here as we think about your overall revenue profile with 300-millimeter versus 200-millimeter. You’ve talked about, I think even today here, about expecting some increase in 300-millimeter power management. I know you’re trying to drive 300-millimeter into more of your product lines here. So can you give me a general sense of where you sit in terms of revenue exposure at 300-millimeter and then how does that progress over the next one to two years?
Russell Ellwanger: Right now it’s a bit over 20% of our revenue, and it is, obviously, if you look at the fact that the capacity that we’re growing is in Agrate that’s 300-millimeter and in Albuquerque that’s 300-millimeter, it’ll be substantially higher. So a good portion of our plan of the $2.6 billion is 300-millimeter growth. So I would say that…
Richard Shannon: Okay.
Russell Ellwanger: … by the target of the $2.6 billion then the majority of our business will be 300-millimeter.
Richard Shannon: Okay. Excellent. Last question for you, I’ll jump out of line, Russell. I want to get your sense here of thinking about the revenues for the year. I think you’ve characterized this call as in the last call, where you can see sequential growth throughout the rest of the year. I guess two questions to that end. How do we think about the growth profile in the next two quarters of the year, kind of qualitatively? Would you expect the third quarter to be similar or higher sequential growth? And then as we’ve seen in your normal patterns in the past, the fourth quarter tends to be more flat or at least a lot more growth than the third. Is that still a revenue profile that we should count on?
Russell Ellwanger: Well, I’m not sure I want to commit to that question, but what I said at the previous call is that there’d be notable growth in the quarters. I still feel that we’ll have notable growth in the quarters. Will it be a continuum of a 7% or an 8% or a 9%? No, I’m not committing to that. But I do believe that Q2 to Q3 will be a notable growth.
Richard Shannon: Okay. Maybe I’ll ask the question in a slightly different way, which is to ask you a question I asked you on the last call, which is do you expect to grow this year? I think you said be disappointed if you did not. Is that still your expectation?
Russell Ellwanger: I’d still be disappointed if we don’t.
Richard Shannon: Okay. Excellent. That is all my questions. I’ll jump in the line.
Russell Ellwanger: Thank you, Richard. Appreciate you. Thank you.
Operator: The next question is from Mehdi Hosseini of SIG. Please go ahead.
Mehdi Hosseini: Yes. Thanks for taking my question. I have a couple of follow-ups from my end. Russell, if Silicon Photonics is going to profit some of your revenue in Q1, how should we think about the contribution, either in terms of revenue or sequential growth by Q4 of this year? And I understand, I’m not asking for the year end guide, but I just want to see how these new wins and new markets are helping you with the overall revenue trajectory?
Russell Ellwanger: The level of revenue of Q1, we would see it in Q4 being higher, but the level of revenue for the company will be higher in Q4 as well. So I don’t think that we’ll necessarily have higher than 5% of the corporate revenue being Silicon Photonics. But staying at the 4.5% to 5.5% level would be a higher Silicon Photonics revenue baseline for that 4.5% to 5% contribution, if that answers your question.
Mehdi Hosseini: Yes. Absolutely. And then, is there like a kind of synergy between Silicon Photonics and Silicon Germanium? And is that what’s enabling you to be that basically you’re the first on the Silicon Photonics revenue? Is that simply Germanium enabling you to do that?
Russell Ellwanger: Certainly, there is — it’s both at this point going into the pluggable. So it’s more or less the same ecosystem of customers and end customers. Also within the cycle platform that we have, we’re doing a Germanium modulator. So we have experience with 5G to be depositing and dealing with Germanium. So, yeah, there’s certainly overlap both in the space, in the customers, in the knowledge. And then specifically, and I’m not trying to sound overly arrogant, but I think that our RF technology team is pretty much the best in the world. So it’s all within the frame of what they serve and what they know. And just…
Mehdi Hosseini: Okay.
Russell Ellwanger: … the advancements that we’re continuing on the platform, looking at new modulator materials, et cetera, I think that that will keep us in a very strong leadership position and it’s based on having incredibly capable people. President of the company, Marco Racanelli is an RF expert. The person running this activity is Ed Preisler is, I think, the best of the best. So…
Mehdi Hosseini: Yeah.
Russell Ellwanger: … really having his whole team. I mean, I could give you several handfuls of people, but I’d be fearful of them getting recruited. But really excellent, excellent people. And that’s — but it is related to our Silicon Germanium, but as well, it’s related to the capabilities of the people that are doing Silicon Germanium. I know that RF space so well.
Mehdi Hosseini: Okay.
Russell Ellwanger: And I want to play this. We have extremely good customers that are very good partners within that. Now, we’ve done several press releases with Anello in the past. The CEO of Anello, Mario Paniccia, has been an amazing partner that, in general, has been very helpful for us. So the customer base that we have and the way we work with our customers are also tremendous enablers in technical advancement.
Mehdi Hosseini: Just on that note, given how sophisticated the Anello design is and the characterization of silicon, even if competition catches up, these wins are sticky. And I shouldn’t be concerned with any pricing pressure looking to next year because competition is catching up. You could be a single source for some time. Is that the right way of thinking about these new wins?
Russell Ellwanger: If it’s the right way, it’s the way I’d like to look at it.
Mehdi Hosseini: Okay.
Russell Ellwanger: I think it’s predominantly correct. It’s very sticky. And pricing pressure, you always have to work with your customers very closely on prices that allow them to win as well. Pricing pressure, if you have a good customer, it’s not that you’re being leveraged against A, B or C competitor. It’s that you’re working together to make sure that they’re successful in the market. So pricing pressure, I see it, honestly, in many cases, as being a partner to help each other be successful and win. But the way that one mitigates any pricing pressure is by having technological advancements to where you’re either decreasing form factor and hence increasing the amount of devices per silicon aerial unit or you’re increasing performance to where the value becomes higher of the silicon that you’re selling.
