Tom Diffely: Yes, hello, good afternoon. And it turns out that I pressed star 1 like 20 times and the last time it finally worked. So there was a little something wrong with the system getting to go. I’m sure there’s probably others that have been pressing star 1 as well. Anyway, John, I was wondering if you could just give us a little bit more of your view of how the geopolitical restrictions are going to impact you in kind of the mid and long term. I know there’s a lot of cross currents that are going on right now, but just from a just a big picture point of view.
John Kibarian: Yes. So from a big picture perspective, Tom, we’ve been trying to square the circle. Of course, there’s specific things with respect to our products, which ones what we can and can’t do in China and how we can operate in China. And there’s a number of layers to that. Not only do the products need to have no U.S. content, but also the way you operate that needs to be in situations where you don’t have U.S. people. If you’re going to work with ABC factories, what we called ABC advanced node factories. We believe most of our activity with customers is not on leading-edge, but actually on trailing edge facilities, fabless companies accessing trailing edge fabs and other parts of the supply chain. And so when we looked at our forecast out for bookings in 2023 and 2024, we think some of the things that were associated with leading-edge probably won’t happen because for a variety of reasons.
Not the least of which they can’t get equipment to do what they need to do. And at the same time, we see customers accelerating what they’re doing on trailing edge nodes in China. And so we think it’s going to change their buying behavior, which is kind of what we put in my prepared remarks. And we think we have plenty to sell them on those nodes and capabilities. So kind of irrespective of what we are able to do with leading-edge fabs, it doesn’t really matter very much. We think most of the market for us in China will be on the mature nodes in 2023. And then what we don’t know is just, how will the buying patterns change in China. Obviously, U.S. has been very aggressive with these restrictions. We don’t know how the Chinese government will react and what that means.
And so it gives us a moment of pause just to think, okay, we don’t really €“ even whether we have, even if we have customers that want to buy and we have things that we can sell them and ways of delivering, et cetera. We don’t know what it really means over the long-term. So the short and medium term, it’s been quite good for us on 28-nanometers, we talked about the Gainshare on Exensio usage, et cetera. When we look further out, we’re going to assess what really is going to happen. I think it’s very hard to forecast the future in this regard like this.
Tom Diffely: Okay. That’s very helpful. When you look at the mature nodes, is it across the board of the mature nodes? Or is there a particular sector like power or silicon carbide that’s really driving a lot of that activity level right now?
John Kibarian: It is across the board there. They have a big effort on electrification of automobiles in China. So, you do see a lot on the high-voltage stuff going on in China. You see also 28-nanometer in microcontrollers and in IoT of things and stuff like that and everything in between. So, we do see quite a bit of activity with customers across many product families that are not subject to U.S. restrictions at this time.
Tom Diffely: Okay. And then moving over to the Gainshare. It sound like there was about a $2 million onetime piece of that. Was that just for work done in prior quarters? Is it a catch-up period as well? Or is there something more to it?
