GLOBALFOUNDRIES Inc. (GFS) September 8, 2026 Conference Transcript

Good afternoon, everybody. Welcome to the Goldman Sachs Communicopia and Technology Conference. My name is Jim Schneider. I'm the 75-year-old analyst here at Goldman Sachs. It's my pleasure to welcome Global Foundries and CEO Tim Breen to the stage today. Welcome, Tim.

Thank you, Jim. Great to be here. Thank you.

Excellent. I want to start off with a couple of very high-level questions around your business. Global Foundries kind of stands as a foundry providing specialized CMOS processes. You know, as manufacturing sites spanning the U.S., Asia, and Europe, at the highest level, tell us a little bit about what kind of capabilities are unique to Global Foundries, why customers come to you, and why you win. Thanks, Jim. Great to be here.

Look, we see that in three broad categories. I think the first thing is that there was once upon a time when in semiconductors there was leading edge and lagging edge, and that was really defined by the technology transitions that the industry went through. I think it's obvious today that we've moved beyond that paradigm. And we've moved beyond it because where semiconductors find themselves in our daily lives, in the data centers that we're relying on, in space, you know, a broad set of use cases. And it means that, you know, when you think about what we do, you have to focus your strategy, you know, against that. And so we think of these three pillars that we focus on. Number one is our technology portfolio. So we have an incredibly rich, diverse technology portfolio built over now 17 years since we've been a company called Global Foundries in areas as diverse as analog mix signal. In power, in ultra-low power, CMOS, and beyond. And so step number one, have for those diverse applications a set of technologies at the process level, and increasingly now beyond that process level with advanced packaging, with IP, with software, with custom silicon as well. So pillar number one, a kind of deep focus on those differentiated technologies that accomplish specific workloads. Number two, ultimately, you are a really high-stakes decision for your customers. They don't get to choose you this year and not choose you next year. They bet on you for the long term. And so you need a track record of trust and delivery, and that takes time to build. And we've been doing this for some time now. I'm really confident to say now we're in a place where 10 or more customers have done a decade with us and made millions of wafers and hence billions of chips with us. And so we have that foundation of trust with our customer base and with our ecosystem. And then the last part you mentioned, it's in the name, is that global footprint. And it's really hard to build. It takes a lot of time. It's actually quite painful to establish not just a set of fabs in different geographies, but ones that work together as one global network that have cross-qualified technology so a customer can tape out once and manufacture in three continents. That's a huge advantage in a world where supply chains are more fragile than ever and need more resilience than they've ever had before. And so, again, when you put those three together, it's clear why customers are coming to us more and more for what we do.

Mm-hmm. Now, you hosted an Investor Day back in May where you laid out some of the long-term growth drivers of business. I think you called them megatrends of AI data centers, physical AI, and resilient global supply. So maybe unpack some of these and highlight the specific areas where you expect to have the greatest impact on your business over the next few years. Yeah.

So when we start in the data center, I think obviously it's the area that everyone in the industry, everyone in technology is very focused on. And if you leave aside for a second just the sheer scale of the build-out that's happening, you know, we talk about the 800 billion of hyperscaler CAPEX this year, those numbers growing into 27 and beyond. But leave aside the scale of it and talk about what's happening within that data center today that was different from two years ago or different than even a year ago. And it's that that data center is increasingly heterogeneous in terms of the compute that's going into that. And so while before it was a GPU-centric kind of build-out, now you're talking about GPUs, CPUs, LPUs, NPUs, basically anything with a PU after it, working together in a much more complex computer environment because the AI workloads have changed. They were originally quite narrow in scope, now heavily skewed from training now to inference, and even disaggregated inference workloads as well. So that introduces a new challenge called how do you connect all of that together? And so in that data center, we very much focus on the optical connectivity piece of it. We'll talk more about that. I'm sure there's a lot of growth in that sector as we transition from copper to optical. But beyond that, in the data center, you're also seeing an increasing criticality of improving power conversion and power efficiency. So again, data center power being a very good growth driver for a business like ours that specializes in the technologies for intelligent switching, dense power conversion, and so on. So data center, very, very strong driver today, where we're seeing very, very good demand growth, where we're also investing CapEx for capacity for the short-term ramps. We think that is probably dwarfed by what the longer-term physical AI transition will be. And it's a bit like every transition we've seen in technology. You start with a boom, and everyone focuses on the boom, but we forget that there's always an echo that comes later. And the reason we think that's the case is that when AI permeates the devices in our world around us, there are so many more use cases that can be deployed that we haven't thought of yet or we haven't taken full advantage of yet. We haven't seen that really materially hit the business yet, but of course we see increasing interest in robotics, but also industrial automation, medical devices, agriculture, consumer devices, a broad spectrum of devices, all of which will need a lot more semiconductor content because operating in the real world, They will need to sense their environment, think with distributed compute, control a real-time system, you know, actuation, motor control, and so on. And they will need a ton of communication, largely wireless communication. So the second driver, physical AI, very much at the beginning and the early stage, but we think that is a material business growth driver for us. If those two were all that was happening, that would already be pretty overwhelming for us and overwhelming for the industry. But they're also happening at this time where this reshoring trend is now truly accelerating. And for a long time, it was interesting to customers that we had a global footprint, but it was not a competitive differentiator. It wasn't something that said, okay, we need to do this with you because of the footprint you have. In the last couple of years, that has dramatically changed to the point that now we see procurement processes where NCNT is the rule not a nice-to-have, right? Made in the U.S. is a critical feature of that. And so it's almost a multiplier effect on the first two that all of this demand growth is happening at a time when the industry is, in a very committed way, driving that reshoring of capacity into the U.S., but also into other parts of the footprint as well.

Great. I want to dive into those things, but maybe first ask about operational kind of question. What are one or two key objectives you're driving toward over the next, say, year or so? And if you think about investor expectations for the business heading into 2027, if you were to outperform, what would be the key areas of upside you see for the business?

So it's interesting how our industry moves through these periods of, you know, when you're chasing supply or chasing demand. We are clearly in a chasing supply moment today. And for us, what that mostly means is a deep focus on ramps of technologies that we are already producing today, but ramping to higher volumes. We'll be definitely increasing our capex. We already are increasing our capex. This year from last year, we'll be increasing further again next year. But it's all going to come down to how quickly we can get tools installed, qualified, ready to ramp for customers. That will gate or accelerate our growth going into next year. We don't see a demand-based reason that that would be different. We definitely see a supply-based reason that that would be different. And that puts us in a very much more executional phase of our business, right? We're delivering for customers, working hand-in-hand, finding ways to take risks together to go faster to meet their objectives for their markets. So, you know, priority number one, job number one is really just build out that capacity and ramp as quickly as we can in those technologies that we are investing in, and really doing that in a very much partnership mode with our customers. By the way, not just in terms of commitment, but even in terms of, like, financially, right? They're also co-investing alongside us in some of those ramps as well. So that's priority number one. Priority number two is in that broad set of technologies that we offer, every year we're delivering critical roadmap intercepts, qualifications of new products, new technology launches. We just had our global technology summit here in Silicon Valley last week. We've never had as rich or diverse a roadmap as we do today in all these different end markets. But those are things customers are counting on. They're counting on it being ready, first time right. And so, you know, job number two, very close second priority, is delivering those roadmap intercepts for features and performance that they need to win in their end markets as well. So high execution focus.

Excellent. Now, clearly, AI Data Center is one of the bigger drivers of the growth in the overall market. You have a differentiated position in Silicon Photonic specifically. Walk us through that competitive differentiation relative to some of your competitors like Tower Vanguard, et cetera, and address some of the actions that TSMC may be taking into the market as well.

Yeah, so, you know, if you back up a little bit, the transition to optical, you know, if we had this conference discussion a year ago, two years ago, we would be having an if discussion, not a when discussion. We're clearly now in a when moment for optical, and it's because AI data center workloads are much, much more data intensive than previous workloads that were ever considered in being. And so now we're firmly in that camp of transition, and the transition has kind of two dimensions to it. First of all, a transition from long-distance kind of coherent optics that scale across to scale out and eventually scale up and even potentially scale in, right, all the scales, right, in the data center in terms of which links are being replaced by optical that were historically copper. But the other transition happening is form-factor transition where today you see the strong ramp of pluggable optical transceivers, but tomorrow you're seeing, even taping out in our fabs today, near-package optics and co-package optics designs that are going into production in 27 and 28, and that's because you need to deliver that optical link closer and closer to the XPU, the GPU, the CPU, the switch ASIC, and so on. So this is the backdrop of what's happening. And it matters because our differentiation isn't just about capacity today. It's very much about a roadmap that can deliver the performance that those transitions need over time. And so you have to have a core silicon photonics platform, which we've been building for more than a decade, that can do high-speed modulation. So we're now talking about 100 gig per lane becoming 200 gig per lane, 200 becoming 400, going beyond 400 gig per lane with new materials, new modulators, and so on. So a core photonics platform that can accommodate the acceleration of bandwidth. But you also need to think about how that form factor is delivered. That's where advanced packaging comes to play as these solutions are delivered closer to the chip. Hybrid bonding, ability to attach a fiber to the chip. These are all difficult and new techniques that weren't in the industry before. And again, part of our roadmap for the innovation that we've been driving as well. So you need that technology platform. You need the capabilities to work with a diverse set of customers. We have more than 40 customers in photonics today, and that number keeps growing as players really invest in their optical roadmap. By the way, everyone who was touting copper two years ago has either launched an organic or inorganic effort to get into optical, right? And so suddenly everyone is doing optical, but that means you have to support them in these new ramps, these new capabilities that they're in, with not just your team, but your models, your PDKs, and so on. So the second piece of that story. But the third piece, maybe the most, in a way, difficult to replicate, is this is a fast-growth market. And so people are not betting on you to sell a few wafers today. They're looking to how do they scale for the next multiple years. We're ramping our photonics capability in existing scaled 300-millimeter fabs. These are big fabs. These are fabs that do today hundreds of thousands of wafers of leading-edge, effectively leading-edge capabilities with lithography like DUV and so on, that are ready to scale for higher-performing applications in the future without building new fab space. And we've talked about being able to 10x our photonic capacity within our existing four-wall infrastructure in the U.S. and in Singapore to really meet the needs of that market going through that high-ramp period as well. You put those three things together, it's fairly clear why we're having really good engagement with customers in photonics today.

And to that point, you laid out growth targets of getting to a billion-dollar run rate in silicon photonics in 2018, $2 billion by 2030. You know, how do you see that trajectory in the very short term? And then what would we have to see in either near-packaged optics or co-packaged optics for you significantly below the path of surrogates?

I think the industry adoption needed to reach those targets has already happened. So I think we now have very limited adoption risk baked into that. Now we're in the mode of, again, chasing supply in the near term. How quickly can I qualify tools? Can I invest and wrap that capacity within my existing footprint? All indicators right now from a demand point of view are flashing kind of bright green relative to those targets. It's a question of how quickly I can build on that, bring that supply on. And obviously, I'm going to do that in an intelligent way, understanding that, you know, when you lead with capacity, you've got to balance it from a long-term kind of profitability point of view as well. But right now, we see much more demand than we can supply out of our current install base, so we'll definitely be accelerating that. That's still primarily today, that path to that first milestone. Pluggables gets you pretty much all the way there. We're already seeing the NPO rollout, picking up steam. And by the way, it's many of the same players who are in Plugables today rolling out their NPO solutions. So I think that transition is now very much inevitable. If you saw really broad adoption of co-packaged optics that latter part of the period, you could blow past those targets materially because co-package is the area which is critical for that scale-up transition. Once you're moving into that, you're replacing 10x the links of scale-out with those solutions. And so you're not going to see a linear growth story. You're going to see a much faster growth story on top.

Another key theme in the data center is high-voltage power, specifically for the 800-volt transition. We're expecting to happen sort of maybe by the middle or the end of 2027. Can you lay out for us your exposure in those areas, specifically for gallium nitride and BCDMOS?

So, as you said, we're seeing a paradigm shift in how power is converted, what it's converted from to. As you said, next year's data centers will be having 800 volt at the data center wall that needs to get delivered to 0.8 volts, let's say, at the chip with as few conversion stages as possible in a very dense form factor, right? The rack is denser than it ever has been. The amount of current that's used by all of these processes is very, very high. And so you need technologies like BCD for intelligent switching. You need to do dense power conversion with GAN. The same reason your GAN power brick for your laptop is much smaller than your historical power brick is the same reason that the data center relies on GAN for that. We're shipping GAN products to the data center today. One of our partners, Navitas, talked about that last week. So that ramp is already underway today, and BCD is the same story. And our latest BCD technology, 55 nanometer, which is not, from a digital point of view, very complex, but from a power point of view, is kind of really very, very advanced. It's already being used in those new conversion stages that are going into production. As of now, so that ramp is starting. We have yet to see the real pull-through for the business, but we'll see that going into 27 and even more into 28, which is when we're also putting some capacity on for that technology. The latest innovation in the data center is also the switch from lateral power delivery to vertical power delivery. There's not enough space in the rack, and so you need to find ways to deliver power vertically to the chip. We've been making investments in this area with process technology, integrated passives, but most recently with the acqui-hire of a small team focused on designing those voltage regulators with customers. Because, again, when you make a rapid technology transition, it's not just about having a standard offering and use it if you want to use it. Work as partners with your customers, be they a traditional power semiconductor player or a hyperscaler or anyone in between, to really help them navigate that transition, and that's exactly what we're doing.

So, very fair. So, you know, even as you're diversifying into these markets we just talked about, you know, you still have a significant amount of your business today tied to the smartphone market. I think a lot of people saw memory pricing driving down potential demand destruction, but I think it's maybe played out in a little bit different way than some people expected. Some pull-ins happened in terms of builds rather than driving sort of immediate downdraft. And, you know, I guess, how do you think these dynamics now with the benefit of hindsight are going to play out in your business in the, you know, talk about what you saw in the first half and then how do you expect that to kind of materialize in the second half?

So we've been very deliberate about our approach to mobile, and mobile has taken this industry quite far, and it's been an important driver of how many companies got to where they got to, right, TSMC, by the way, included, right? We were more than 50% mobile going back a couple of years. That's down to the mid-30s today. We've laid out a long-term model that takes it to the mid-20s. And so we think that over time, as a percentage of revenue, it decreases. In absolute terms, it remains relatively flat. Or let's say, to achieve our plan, we do not rely on it growing to achieve our medium-term plan. And that's very deliberate because, again, we want to see the growth coming from the other areas where we're driving the diversification even harder. But the Humble cell phone still has a role to play. It, by the way, creates also a platform for technology innovation. You know, the BCD technology we're excited about for the data center, It was born in the mobile phone, right? And if you can deliver it in that form factor, you can deliver it in other form factors, too. Look, I think, practically, when we started the year, there was a view that it would be a tough year for mobile. It is, indeed, a tough year. It's not as tough for the higher end, right? I think it's very tough on the low end. More of our exposures to the higher end handsets. We'll see what announcements, including this week's announcements from the Cupertino company, what they yield, do they drive, you know, appetite for a refresh cycle, what does pricing really do to demand? I'd say it's holding up better than perhaps some people thought, because, again, there's still just a natural replenishment rate. I think the other dynamic that we're seeing is mobile companies were the first to the queue in COVID. They understood that by getting early, they would not be the ones shorted in supply. Now they're worried about being late when the data center is the one pushing all the demand. And so you're seeing actually more visibility where they're actually still saying, I need my supply for 27, I need my supply for 28, Because we're still going to sell plus or minus, you know, a large number of units of mobile, even if it's down, you know, low double digits or so on. It's still a material amount of content that needs to be secured.

Yeah. Yeah. Makes sense. You know, finally, automotive. That's been a very significant growth driver for the company since the time of your IPO. I think you're running over a billion and a half of that business today. Can you maybe speak to any incremental customer wins you've had over the past year and the sort of potential for you to maybe outstrip the double Did it grow? You talked about Investor Day.

Auto has been a great story for us. We were sort of five years ago, 2%. It's now in the 20s. That'll continue to tick up as it continues to grow. Auto is a predictable business, meaning you can predict there's a cycle between the design win, the tape out, and the ramp, and it takes longer than other markets, but it lasts a lot longer as well. So from a fixed asset perspective, it's a great kind of business to have in your portfolio. And we have one of the highest shares of auto of any sizable foundry, right? Others may have different We have different numbers, but ultimately ours is one of the most significant, and it's because the technology fit and the footprint fit is really good for auto. All the portfolio of what you need for microcontrollers, zonal controllers, battery management systems, in-cabin sensing, high-performance radar, all of these kind of applications that increasingly you wouldn't buy a car without. They're no longer nice-to-haves. They're very much must-haves. They fit really well within our technology base, and automotive has been really vocal about supply security. And so if you look for who have been most out there with NCNT policies or U.S. for U.S. sourcing, and even gone as far as securing that capacity themselves, as GM did with us and others have done as well, you're seeing automotive really leaning into that story as well. So that's contributed to that kind of double-digit growth story that we've seen that will continue this year, next year, and beyond. In our kind of plan that we laid out early this year, we see that kind of growth rate continuing. I would say the upside from that, auto is predictable, right? All this is happening with content growth rather than growth of unit sales, and the predictability is one of its strengths. Where we can see upside is where the automotive technologies are deployed in other applications. Right now, we start to see microcontrollers getting a pull-through from industrial, maybe the very early sign of robotics starting to pull through too, because all the performance characteristics operating in difficult environments, high High temperature, vibration, high quality, all of that is a great credibility builder for those other applications going forward. So I think Auto will be, in a way, a bit the springboard for some of those other growth drivers going forward.

Great. Tim, over the past year or so, you've made some unusual acquisitions of processor IP, specifically related to MIPS and RISC-V, plus some access from Synopsys. I think that most caught people by surprise to some extent. So maybe help us understand how those deals fit together to sort of get to this billion-dollar revenue run rate in 2030 you outlined across IP software and custom silicon.

So we've done, I mean, just to back up a second on the total acquisition strategy, we've done about six acquisitions in the last two years, and we've viewed all of them through the lens of bringing something differentiated to customers. So the test for me was when I send out an email to my customer CEOs, my partners, and I say, we've done this, are they going to respond with a shrug? Are they going to respond with a let's talk? I would say in our IP investments in particular, it's been very strongly let's talk. And the reason is that they see this as an extremely important part of their portfolio. They're also dependent on one dominant provider in that space, right? Sounds familiar from our Foundry experience, where they're saying, I need alternatives in my business. They're excited about RISC-V. I think the story of RISC-V being a little bit of an emerging technology and being a bit of a hobbyist technology, that was five years ago. Today, it's broadly adopted. By the way, you see that also in the acquisitions that people like Meta, Qualcomm, others have done of RISC-V technologies and so on. So RISC-V has also come of age at the same time as we've done these deals. And so customer feedback is, this is great. You're filling something that I don't have in my portfolio. For me, what's great about it is it's bringing in, you know, accretive revenue, very good margins, very good growth, but it's doing it in a way that is synergetic with my customer conversations already. And so I'm able to engage with customers when they're thinking about the next generation architecture for their zonal controller or the next generation radar, whatever they want to build, and we're able to bring to it tools that they otherwise wouldn't have access to, software tools for simulation, processor IP for different workloads. We can shorten their time to market, but we also get an insight on what they're trying to achieve, and that obviously puts us in pole position to be the manufacturing partner of choice as well. So I know it's very unusual for a foundry to also be an IP supplier, but I'd say today we're actually probably the second largest processor IP supplier after the incumbent, if you will, because of the demand that we're seeing, and that's going to grow going forward. The last piece of it that's really interesting for us is when you build very specialized process technology, you want to get feedback loops quickly on how you can improve. Obviously, that normally comes from your customers. You do a design, you get feedback, you improve. When you have something like that internally, you're getting that feedback loop internally. You're eating your own cooking, if you want. And so you're getting much tighter loops on your own process technology, and you're improving it much more rapidly than you otherwise would, which means it's even better served when you go to that next conversation with the next customer to say, If you use this IP and this process of technology, here's what you can do in terms of device performance from that. So I'd say off to a very good start. We've talked about between $100 million and $120 million of revenue this year, but that's growing very fast, and we're very confident for that end-of-decade kind of billion-dollar exit run rate on the business, just given the pull we're seeing from the industry.

Yeah. And then how do you think about kind of as you bring those pieces of IP together, like how the business model matures, how your familiarity with running that business actually matures, And maybe give us any kind of sense you can about, like, whether the ultimate objective is to bring more customers into your foundry business through those relationships or to actually, like, really just ramp the scale and size of the IP business standalone.

I think it's going to be a bit of both. When we acquired Synopsys' art business, it came with 300 customers. You've got to believe that in the last few months since we closed that deal, we've been engaging with those customers in a whole different way to say, what don't you have that we're not doing together today on the manufacturing side? Because they're all building something, right? And what also don't you have in terms of custom requirements, custom IP that you need as well? So I think we have a really fertile ground to grow, I guess, within that existing customer base. We also have a way to be a much more strategic partner to some customers for whom before they might have seen us in a narrow vertical of a manufacturing solution. Now you've got a broader set of conversations to have with the business unit leaders who are themselves going out to work and conquer the markets. So I think that synergy is really strong, and I think it's playing out better than expected. We knew it would be accretive. We just didn't understand quite the pull the industry would have at this time for it.

And can you maybe just say something about sort of like what the most natural base of customers is for you in that business, and then sort of like any design wins you've actually gotten so far?

So, you know, it continues to have a pretty broad base. We've been public about a few of the more recent wins. We've seen wins in areas like defense. By the way, defense obviously also values that footprint very strategically as well, but often lacks the capabilities to build their own designs, but they would like to do more of that. So we had an announcement with Lockheed Martin about that, which is a good example of, you know, and you'll see more of those where a defense player wants to differentiate in silicon but needs some of the building blocks like the IP to make that happen. So defense has been a good area. In automotive, we've been very public about partnerships. We feel like Infineon, existing strong GF customers, but going deeper with us through these things. You'll see more announcements in the, you know, months to come, But it's actually pretty broad, and it's a combination of who you'd imagine is the traditional GF Fabless customers or, let's say, IDMs who are increasingly Fabless in their portfolio, but then a really broad set of Tier 1s, OEMs, and even some hyperscalers, by the way, both for kind of edge-type solutions that they're building, but even there are some applications in the data center where they have a data processing unit, a coprocessor that they're using that IP for as well. So it's actually been really great at expanding the kind of quality of discussions and, to a certain degree, expanding the customer base that we work with.

I want to briefly touch on quantum because I think you announced another U.S. government award this morning, if I'm not mistaken. Maybe talk about sort of like just for a second on your quantum strategy and how sort of some of these recent rewards are sort of playing into that and when that starts to become like a real business. Yeah.

So we've been doing quantum in various shapes and forms for maybe seven, eight years now. It starts with a single customer engagement, and you build around it. But clearly, there has been an industry-wide, let's say, uptick of momentum in the last 12, 18 months. And the reason is that you have all these quantum modalities that are being proven at lab scale, and all the companies are facing some version of the same problem called, I can't build a system with 100 qubits, 1,000 qubits. I need 100,000 qubits. I need a million qubits to build a scalable, fault-tolerant quantum computer. And so the bottleneck is not quantum science. It's high-volume manufacturing. And it relies on a lot of the stuff that we do very well when it comes to integrating novel materials, advanced packaging, high-speed interconnect. By the way, many of them using photonics or some kind of optical technology for high-speed interconnect. And then one thing that comes across nearly every modality, which is that I have to be able to read out those qubits at very low temperature, right? So we have something we call cryo-CMOS, which is basically conventional FDSOI-CMOS we use for many applications, But characterized at four degrees Kelvin, so it can read out those quantum signals, those qubits, at a different environment that many, many quantum companies are leveraging. And so we started to see that out of this, we had the foundation for a platform that we could take to a broader set of customers. In parallel with this, the U.S. government strategically said, look, we need to be leaders in quantum. Quantum is relevant not just for economic opportunity, but for national security. How can we partner with the industry in a much more aggressive way to go faster? As the conversation said, look, these are the things you're planning to do over time. What would it take to do it faster? What would it take to do those in two years instead of over five, six years? And so we struck a partnership that accelerates our investment in infrastructure, tooling and so on, to do some of these more complex, exotic processes, building some of that enablement that we talked about, the PDKs and so on, for many customers to use, and really allows us to go faster in a journey that we're kind of already on. And I'll emphasize that Journey is not kind of orthogonal to the rest of GF, because a lot of the roadmap requirements are beneficial to the rest of the company, right? What the next generation of photonic modulators will require in terms of materials, we're already using at the quantum stage. You know, thin-film lithium niobate, barium titanate, all these exotic materials with long names, they're being proven at quantum for quantum applications. They will be needed for the next generation of photonics. So there's a ton of roadmap synergies in the portfolio. So today we announced that we completed the deal that we announced earlier in the year with the government, so we're very happy to have them on board as a partner driving this forward. And, you know, it's going to be a continuation of the strategy that says invest in the technologies where you can have a true leadership position. I'm not the best player to do single-digit nanometer or buy the next NA EUV tool, but I am the best player at integrating novel materials, advanced packaging, and a very different application that otherwise would be very hard to do.

Yeah. Final question in the last minute or two we have left. If we put everything in the broader financial picture, you talked about diversifying business along the lines we've just described, getting to 10%, 12% long-term growth by 2028 and beyond. What are the drivers that are driving the most confidence in that view, and are there any risks that you see?

I think it's a model we sort of laid out, and we sort of said, let's build a plan where diversification is a feature, not a bug. And it's very deliberate, right? There are plenty of companies in Semi experiencing very fast growth rates. But if you look at it, it's relatively narrow, right? It's a product category. It's an infrastructure transition. We said, look, we're going to build a plan that is based on growing in multiple areas. And in some areas, less of a growth plan, more of an upside plan should that upside come to bear. And so we're quite happy with that growth. Obviously, that meant laying out targets for things like communication infrastructure and data center of 30% or in the 30s. We're doing 60 in Q2. So obviously, in some areas, we're well ahead of those numbers. In other areas, we're kind of tracking in line with, like, auto, for example. Or in IoT, we're actually tracking slightly ahead as well for year-to-date, right, relative to a long-term plan target. So I would say because of the megatrends we started talking about, I don't see a demand constraint to meeting and exceeding that plan, right? So how do we navigate? We have to obviously navigate the investment cycles we go through. We have to partner closely with customers. You're only as good as your last delivery, right? You earn reputation every day by delivering. But again, I think for the next couple of years, we will be more in a supply-constrained than a demand-constrained environment. It will be more about that rate and pace of investment that we want to take on. And I think that the advantage in this cycle versus others, two things that matter. One is customer skin in the game. Customers are deeply, we don't have to ask. They say, I want to be with you in this. I want to support you. Go faster. I'm betting on you. You need to succeed. How can I help? And when that end demand is driven by people like the hyperscalers, of course, they're willing We're going to put capital to work to drive that story. The other thing that's happening is those government partnerships play a critical role. When you're driving a build-out, having partners who are literally working with you every day on a bunch of programs and have put in place tools to allow you to accelerate CapEx at significant recovery rates that weren't there in the past also allows you to go a bit faster. So I'd say, look, next couple of years, barring any changes to the environment that we don't see as of today, supply-constrained, not demand-constrained. Over the long haul, the diversification of the platforms gives me a lot of confidence in the broader growth over that planned period. May even make those numbers look a bit conservative.

I hope that's the case. And thanks very much, Tim, for joining us today. We really appreciate it. Unfortunately, we're out of time.