“Let me unpack CapEx just for a minute. We are now calling it flat year-over-year.”

In context

“. The Google one, I think both parties wanted to see an announcement. In some cases, customers want to keep that confidential, and we respect their desire to maintain confidentiality, so some of them we just did not announce. It is a win-win in a lot of ways. We get a good understanding of the volumes that we can then build into our assumptions around supply. It is good for the customer because they know where the supply is coming from, and they get a good sense of what pricing they can expect. John Pitzer: Ben, do you have a brief follow-up? Benjamin Reitzes: Yes, thanks, John. With regard to CapEx, is there anything in there with regard to investing in foundry customers? Or is that still not in there? And when do you think we will hear more about that in the CapEx figure? David Zinsner: Let me unpack CapEx just for a minute. We are now calling it flat year-over-year. Initial thinking was that it was going to be down. I think we moved it last quarter to flat to down, and now I think we are looking at flat. That is really a function of the current demand environment we are seeing. One thing to keep in mind: in the last few years, a lot of our CapEx spending was space, and I think we are actually in a pretty good position in space. We wanted to have white space available to move into when needed, and I think Lip Bu and I both feel like we are in a good place. So we will be bringing the space spend down pretty materially, even though the total is flat. What that means is the tool spend is actually increasing pretty significantly. In fact, tool spending will be up year-over-year ~25% or so. That is a function of the fact that we see a lot of demand, and we”