“I think we'll get, like I said in a call a couple of quarters ago, $4 billion to $5 billion of savings from this internal foundry model ultimately.”

In context

“lastly, we've got this internal foundry model that Pat mentioned, and I mentioned in the prepared remarks that we think is going to deliver tons of savings for the company. I think every week that Pat and I spend on this. Somebody brings up another big rock that they found of savings they can identify, because they were looking at the business in an entirely different way than they're used to looking at it. The product groups are now hyper-focused on test times and how many - and what sort of hot lots they do and how much sample activity they use. The factories now, as you point out, very, very hyper-focused on loadings and making sure they're properly thinking about their capital investments associated with the loadings. So, we're way more focused in terms of steppings and so forth. So, I think we'll get, like I said in a call a couple of quarters ago, $4 billion to $5 billion of savings from this internal foundry model ultimately. And so that's another big step function that I think gets us to the 60% gross margin. Pat Gelsinger: I'd also add things like we just announced with UMC, right. We're taking older factories. And as Tim, as you might've heard me say in the past right, a bug in the Intel business model, right. Just when a factory got very good and depreciated, we moved to the next node. Well now, we're starting to fill that with long-term foundry business as well. So all of these are improving the discipline of running the business as well as how we utilize our factory networks long-term. And we really do think that the 60-40 is what Dave and I are driving the business to and we're going to get there. John Pitzer: Thanks, Tim. Jonathan, can we have the next question, please? Operator: Certainly. One moment”