“And of course inventory levels always depend on demand expectations and for the time being in the near term, they will likely have an upward bias.”

In context

“pper range of your target to more than 200. I also appreciate, Dave, the transition from Disti to Direct. But at what point do you think you need to cut production or cut utilization rates and start to manage down the inventory? Are you still comfortable with where things are today? Dave Pahl: Yeah. No, thanks for the question, Toshiya. Yes, we are comfortable where we are. As a reminder, our objective for inventories to maintain high levels of customer service and minimize obsolescence. I would point you to slide 13 at our capital management call. That shows the semiconductor cycle over many years of about 30 some years and what that informs us on what could happen in the future and we're planning for the long-term growth through those cycles, not in any one quarter or even any one year. And of course inventory levels always depend on demand expectations and for the time being in the near term, they will likely have an upward bias. Toshiya Hari: Okay. So just to clarify, you're still running your fabs full at this point? Rafael Lizardi: Utilization this last quarter was lower than the previous quarter. That was largely a function of adding capacity. Toshiya Hari: Okay, thank you. Dave Pahl: Thank you, Toshiya. The next caller, please. Operator: Our next question comes from the line of Stacy Rasgon with Bernstein Research. Please proceed with your question. Stacy Rasgon: Hi, guys. Thanks for taking my question. So my first one is just to follow up on that. You said the inventories have an upward bias. So that means inventory like dollars and days, do you expect to increase again in Q3? Rafael Lizardi: Well, the days depends on revenue, of course, but on the dollars -- has an upward bias. So there's very likely that t”