“Beyond that, what I would tell you for CapEx beyond 2026 is to think of the 1.2 times rate that we have talked about before for the long-term CapEx intensity. So, for example, if you take 5% growth, that would translate into 6% CapEx as a percent of revenue, and that is how you would want to model it.”

In context

“ght number? And then as we think about the modular buildouts within this ongoing recovery, can you help walk us through when you would need to start to add the incremental equipment and how you are thinking strategically about your capacity today, as we are starting to see some foundry capacity at custom mature nodes and now tier-two foundry pricing increases? Rafael R. Lizardi: Yes. I will start. First, the answer to your question is yes. We are looking at $2 billion to $3 billion of CapEx for this year. In that number, there is capacity for what we call phase three, which is incremental capacity that you are alluding to. That is both on the fab side and also on the assembly test side. That is where a growing proportion of our CapEx is going, to the assembly test side, to address growth. Beyond that, what I would tell you for CapEx beyond 2026 is to think of the 1.2 times rate that we have talked about before for the long-term CapEx intensity. So, for example, if you take 5% growth, that would translate into 6% CapEx as a percent of revenue, and that is how you would want to model it. Haviv Ilan: Matthew, just one more point. I think Rafael touched upon it. So again, $2 billion to $3 billion is very valid. Remember, we gave a framework that is still very valid—I think it was a couple of years back during Capital Management—on revenue scenarios and CapEx. I think those are also very valid. I will say that, as Rafael alluded to, we are seeing right now, even at the midpoint of the second quarter—and again, I want to see how it plays out—we are looking at 17% to 18% growth year over year for the first half of the year. That is stronger than last year. So, of course, we want to be prepared in case it continues. No one tells us what the future will be; we just have to support a range of scenarios. In that sense, we are taking the opportunity to divert some of the focus beca”