“That does improve a bit in the fourth quarter. But we'll be kind of dealing with this underload hangover, I'd call it, probably all through next year as we kind of progress”

In context

“s what led me to say, hey, this was an outstanding quarter for us overall. John Pitzer: Aaron, do you have a quick follow-up? Aaron Rakers: Yes, I do, and thanks for the detail there. As a quick follow-up, just kind of thinking about the gross margin line. I'm curious, Dave, I know last quarter, I think it was, I want to say it was $220-or-so million factory underload impact in gross margin. It sounds like you had a reversal of inventory reserve and gross margin this quarter. Are we done with the factory underload or what was that number? And how are you thinking about that embedded in the gross margin guide? David Zinsner: Yes. I mean, it was a meaningful benefit, the underload improvement in the quarter. That said, there was still a reasonable amount of underload charges in the quarter. That does improve a bit in the fourth quarter. But we'll be kind of dealing with this underload hangover, I'd call it, probably all through next year as we kind of progress, largely in part because while we will improve the loadings and probably get beyond underload charges on a quarterly basis, we'll still have all of that underload kind of tied up in the cost of the wafers in inventory, and that still has to get flushed through before we're completely done. So meaningful improvement. I'd say we have -- we're largely out of the woods but still some wood to chop through next year to where we're completely clean in underload. Aaron Rakers: Thank you. John Pitzer: Thanks, Aron. Jonathan, I think we have time for one last caller. Operator: Certainly, one moment for our final question. And our final question for today comes from the line of Matt Ramsay from TD Cowen. Your question please. Matt Ramsay: Thank you very much. Good afternoon guys. Before I start, I j”