“As yields improve on 18A further, we do expect margins to improve on Panther Lake, and they will be above the corporate average, and that will help start lifting the margins there.”

In context

“David Zinsner : Sorry, I didn't follow that. Yes. Okay. Yes, we took -- we had some products where they weren't fully completed from a match set perspective. And it just made better economic sense for us to try to pivot more to some of our other products and not complete them given the challenges around match set. So given it was somewhat stranded inventory, we wrote that down. And you're right, we are guiding flat quarter-to-quarter. So obviously, we get a lift from not expecting to have that write-down in the second quarter. The offset of that is even though like Panther Lake and Granite are doing better in terms of their cost, quarter-to-quarter. They're also becoming a really significant part of the mix, and they're still below the corporate average because they're still relatively early in their life cycle. So that's weighing the margins down a little bit on the offset to the lift we get in terms of the reserves and why we think things will be flat. But eventually, both of those things turn into a tailwind. As yields improve on 18A further, we do expect margins to improve on Panther Lake, and they will be above the corporate average, and that will help start lifting the margins there. And obviously, we're keenly focused on improving gross margins over time. I would say, while there's a lot of puts and takes in gross margins, our #1 goal this year, which everyone in finance here can attest to because I was a dog with a bone on this was to get gross margins comfortably into the 40s in every quarter. And I think the team did a really good job getting there, at least for the first 2 quarters and our outlook for Q3 would suggest the same. So our goal is to be solidly in that, and then we can kind of pivot from there and look to improve the gross margins off of that base.”