“We would expect this to be at least at foundry average gross margins over time.”

In context

“out rising backlog. Anything you can share—what that number looks like, revenue targets this year or next, number of customers? David Zinsner: I have said this in the past—we have been really pleased with our traction there. Maybe naively I thought these opportunities would come in the hundreds of millions of dollars level, but so far what we are seeing is demand in the billions of dollars per year kind of level. This is going to be a big part of the foundry revenue as we get through this decade. The good news is advanced packaging really is a differentiated offering for us and does a lot for the customer, including allowing them to use larger reticles. There is real value to the customer, and as a result we get very attractive pricing relative to some other areas of the foundry business. We would expect this to be at least at foundry average gross margins over time. Operator: Certainly. Our next question comes from the line of Suneet Pajjuri from RBC. Your question, please. Suneet Pajjuri: Thank you. My first question is on 18A yields. Dave, you said the yields are better than you expected and look like they are improving further, but at the same time, it is still a headwind to your gross margin. Can you give us some context as to how much better they are? And as we go through the year, when do you expect that headwind to gross margin to become at least neutral? David Zinsner: 18A yields are a closely guarded proprietary piece of information for us, so we do not typically disclose specifics. I would just say Lip Bu had a target as we came into the year for the end of this year, and we are probably going to hit that around the middle of this year. He”