“We have talked about a target of $130 to 190 days and as I have said before, I will not be uncomfortable to be at the high end of that range, because ultimately that inventory gives us just tremendous optionality, puts us in a really good position to support customers and just given our business model, they lessens risk on the inventory is nil, because that inventory goes to support products that sell to many, many customers and have very long lives.”

In context

“entory, which is where your direct customer consignment inventory is resides. They are still 30% below pre-pandemic levels. They’re down 3% versus last year. They are down slightly sequentially. Is it fair to assume that this is a reflection that your direct customers continue to pull at a very strong rate just given their demand profiles and can you guys get to your target inventory days exiting this year especially with RFAB2 ramping? Rafael Lizardi: Yeah. What I would tell you, the given our manufacturing process, the process at web, then they go to kits, then they go to finish good. Overall inventory has been greatly pointed out over the last four quarters, this last quarter $140 million. Harlan, as you said, finished goods is still lean. Our goal is for inventory to continue to grow. We have talked about a target of $130 to 190 days and as I have said before, I will not be uncomfortable to be at the high end of that range, because ultimately that inventory gives us just tremendous optionality, puts us in a really good position to support customers and just given our business model, they lessens risk on the inventory is nil, because that inventory goes to support products that sell to many, many customers and have very long lives. So we feel comfortable increasing inventory for that reason. Dave Pahl: Yeah. And let me just add that, Harlan, part of your question was, is that a reflection of direct customers and just remind that we have 70% reductions last year, around 70% of our revenues direct, that includes… Harlan Sur: Right. Dave Pahl: … revenue going through TI.com, which we still believe is going to be a significant strategic asset for us as we move forward. And what goes through distribution to my prior combat, we long believed that owning and controlling that inventory is important. We’re probably running two weeks or less than that inside of that. So, when we ship revenue, because we’re owning and controlling that inventory, it really is reflective of what customers want inside of that quarter. So you have”