Harlan L. Sur

“All right, good afternoon, everyone, and welcome to J.P. Morgan's 2026 U.S. All-Stars Conference here in London. Again, my name is Harlan Saram, the semiconductor and semiconductor capital equipment analyst in the U.S. for the firm.”

“You know, the team previously guided your global ICAPS business to be flat to slightly up this year. Outside of China, I mean, we are seeing a strong cyclical recovery in automotive, industrial, for your analog power, microcontroller customers' rights.”

“If I look at the mix of your direct versus your distribution customers, the June quarter marked the second consecutive quarter where your direct customers only grew like mid to high single digits sequentially, whereas your DISTY business grew strong double-digit sequentially in March and June.”

“If you look back historically, your gross margins seem to have taken a structural step up in 2023, but I believe this corresponded to the team moving a bigger part of the volume manufacturing, flowing through your more efficient, low-cost Malaysia facility.”

“The team has raised their WSC outlook, I think, four times this year, including today, to now sort of that low $150 billion ring. So up in a mid to high 20% range.”