“There won't be a lot of lift in that business unit through the year. And it is really not until Panther Lake comes that they, I think, start to see some better cost structure and have a part that's very competitive that I think allows us to perhaps even relax some of that pressure in a competitive market.”

In context

“gure out how high it goes sequentially, as we go throughout the year, given -- it sounds like you're going to be a lot more price aggressive in server CPUs and client CPUs from what I heard. So in addition to -- I'm trying to balance that with the thought of outsourcing more to TSMC for the year, et cetera. So if that's the low point. I guess what I'm trying to say, can you be more prescriptive in light of that pricing comment I made and if it's right, then just give us a little more color on where we go from the 1Q, that would be great. Thank you. David Zinsner : Yes, I mean, we tend to be competitive in the product space. And also, as I mentioned, the cost structure is under some pressure, in particular because of Lunar Lake. So that absolutely will impact the gross margins on products. There won't be a lot of lift in that business unit through the year. And it is really not until Panther Lake comes that they, I think, start to see some better cost structure and have a part that's very competitive that I think allows us to perhaps even relax some of that pressure in a competitive market. That said, the Foundry business will see improvements. Over the course of the year, more wafers will be coming back. With Panther Lake, it becomes even better in the following year. We are improving the cost structure of the foundry business as part of our overall spending reduction plan. So that will also help. And then just keep in mind, these wafers that we are producing at Intel and 18A have much better cost structure and margin structure relative, I should say, relative to the price structure than their predecessors and that will be beneficial on the Foundry side. So in the caveman macro sense, I think the best thing to do is probably take this like somewhere in the 40% to 60% fall-through and that's probably the right rough order math to get you to where the margins will go in any q”