Good morning, good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to today's Tower Semiconductor Financial Results for the Third Quarter of 2024 Conference Call. I must advise you that this conference is being recorded today. Joining us today are Mr. Russell Ellwanger, CEO; and Mr. Oren Shirazi, CFO. I would now like to turn the conference over to Ms. Noit Levy, Senior Vice President of Investor Relations. Please go ahead.

Thank you, and welcome to Tower financial results conference call for the third quarter of 2024. Before we begin, I would like to remind you that some statements made during this call may be forward-looking and are subject to uncertainties and risk factors that could cause actual results to be different from those currently expected. These uncertainties and risk factors are fully disclosed in our Forms 20-F and 6-K filed with the Securities and Exchange Commission as well as filings with the Israeli Securities Authority. They are also available on our website. Tower assumes no obligation to update any such forward-looking statements. Please note that the third quarter of 2024 financial results have been prepared in accordance with U.S. GAAP. The financial tables and data in today's earnings release and in these earnings call also include certain adjusted financial information that may be considered non-GAAP financial measures under Regulation G and related reporting requirements as established with the Securities and Exchange Commission. The financial tables include a full explanation of these measures and the reconciliation of these non-GAAP measures to the GAAP financial measures. We have a supporting slide deck that complements today's conference call. This presentation is accessible on our company's website and is also integrated into today's webcast for your convenience. Now I'd like to turn the call to our CEO, Mr. Russell Ellwanger. Russell, please go ahead.

Thank you, Noit. And welcome, everybody. Thank you for joining our third quarter 2024 earnings conference call, a quarter in which we delivered a strong financial performance. During this quarter, our high-speed data center offerings reached a record revenue. We've seen an increase in our customers' short-term and mid-term demand for this offering that should result in an unprecedented incremental dollar growth compared to any other product offering in our history, mainly driven by our unique offerings fulfilling AI requirements. Revenue for the third quarter reached $371 million, a 6% quarter-over-quarter and a 3.5% year-over-year growth with a net profit of approximately $55 million representing a net margin of about 15%. At the year's beginning, we stated a target of sequential quarterly growth, which we have achieved through the third quarter. We're pleased to guide the fourth quarter to continue this trend with a mid-range guidance of $387 million and a range of plus/minus 5%. The midpoint represents about 10% year-over-year growth from Q4 and an 18% growth within the year. We continue to experience very strong growth in our RF infrastructure business, representing approximately 18% of our corporate revenues in the third quarter and close to doubling in Q3 '24 over Q3 '23 revenue, primarily driven by the increase in optical transceiver demand used in high-speed data communication for AI and other data center applications. We serve this market with both silicon germanium for electrical amplifiers, such as TIA and drivers, and with integrated optical components, such as modulators and photodiodes. Silicon photonics continues to see rapid adoption at higher data rates. Today, we are shipping 800G products in high volume, resulting in a 2024 expected revenue of approximately $100 million for silicon photonics. This is a new growth market where Tower will have over 3x revenue growth in 2024 compared to 2023 with a forecasted annualized Q4 '24 run rate of over $150 million. As of this quarter, we have begun a production ramp of 1.6 terabit products for several lead customers. 800G products are built with 8 parallel lanes of 100 gigabit per second while 1.6 terabit products are built with 8 parallel lanes, each operating at 200 gigabit per second on our latest technology that doubled the operating speed of each component. While the component count remains similar for 800G versus 1.6 terabit 8 lanes, the required performance necessitates continuous innovation, process technology, and integration teams to support demanding modular enhancements. We believe today, Tower is the number 1 foundry by volume in silicon photonics and to our knowledge, also the first in production with 1.6 terabit silicon photonics-based products. Looking forward, we continue a strong R&D partnership with lead customers towards introducing technology for 3.2 terabit, which will rely again on technical innovation, enabling a doubling of speeds to 400 gigabit per second per lane. Our silicon germanium business is growing not only due to the factors mentioned above that are driving the optical transceiver market, but also due to strong demand for active copper cables for short-reach interconnects. Active copper cables typically use a silicon germanium driver or retimer to improve signal integrity at high speeds, currently 800G, and to enable copper cables to be used in many applications for both performance and cost benefits compared to optical solutions. Based on the strong demand we see from both our silicon germanium and silicon photonics customers, we are qualifying both families of platforms, serving optical transceivers in our San Antonio and Makalima 200-millimeter factories. We are optimizing existing fab space and adding substantial additional clean room for further growth. We have also released 300-millimeter process design kits using a 65-nanometer CMOS, which for silicon germanium enables customers to integrate higher density, lower power, and lower noise CMOS, supporting higher precision analog circuit applications, phased array RFICs, and increasingly complex modulation schemes for communication and for silicon photonics for lower loss components. In the RF mobile market, predominantly RF SOI, which represented approximately 26% of our corporate revenues in the third quarter of 2024, we continue to transition customers to new 300-millimeter capacity in Agrate as our demand outpaces RF SOI capacity in our Agrate 300-millimeter factory. We expect to deliver our first production revenue in Q4 to the order of a couple of tens of millions of dollars from the Agrate factory, with further ramp expected in 2025 to support the growth we are seeing in this market. In addition, we continue to prototype with customers on our most advanced platform, TPS 65 RSE, now available directly from Agrate as well with customer acknowledged industry best radio frequency gain and power handling for next-generation RF mobile products. Our newly announced triple-play RF SOI platform for WiFi front-end modules combines the power amplifier, low-noise amplifier, and switch on a single die, which we announced with Broadcom, is in mass production and is receiving strong interest from additional market leaders. Our power business, which represented 17% of our corporate revenues in the third quarter of 2024, continues to see strong growth opportunities in our 300-millimeter 65-nanometer BCD platform. As we have discussed in prior quarters, this platform enables us to enter lower voltage and higher volume markets in handsets and other consumer devices, in addition to our higher voltage, industrial, and automotive segments. We are pleased to report that we have ramped certain handset products to high volumes in this technology in our Japan factory and are now qualifying our Albuquerque facility to enable further growth. We anticipate beginning production in Albuquerque in 2025, and given the large capacity available, we expect this to provide strong growth for our power business for years to come. Moving to sensors and displays, which represented 14% of our corporate revenues in the third quarter. At the year's end, we expected second half growth, particularly from customers serving machine vision. This has not happened, but rather the imaging business remained stable throughout the year as of Q2 run rate. Our customers are optimistic about 2025 growth based upon new wins, particularly based upon wins with our 300-millimeter 65-nanometer CIS platform. Among these wins is a stacked VSI global shutter, ultra-high-resolution sensor of 100 and 325 megapixels showcased by one of our leading customers in last month's Vision Show in Stuttgart. In the display front, we are engaged with two very large customers in the AR and VR market with OLED and silicon displays expected to tape out our products next year on our new 5-volt with extensions to 8 full transistors lean 300-millimeter platform with state-of-the-art low leakage currents and high-density capacitors. Our fab utilization rates for the third quarter were Fab 1, which as previously announced, will be operationally consolidated in Fab 2 and was at about 85% entering into last time buys. Fab 2 8-inch as well as Fab 98-inch were about 60% each, with concurrent capacity repurposing and clean room build-out to meet the continually growing forecasted demand for silicon germanium and silicon photonics products. Fab 3, 8-inch was at 65%, currently at full silicon germanium and silicon photonics capacity with real-time activities reducing certain bottlenecks, targeting a 20% increase in fab utilization. Fab 5 8-inch was at about 60%, and Fab 712-inch was about 85% fully loaded to our operational model. With that, I'll turn the call to our CFO, Mr. Oren Shirazi. Oren, please?

Thank you, Russell. Hello, everyone. Earlier today, we released our quarterly financial results and balance sheet. For the third quarter of 2024, we reported revenue of $371 million, gross profit of $93 million, operating profit of $56 million, and net profit of $55 million, reflecting a 15% net margin. Revenue for the third quarter of 2024 was $371 million compared to $351 million in the second quarter of 2024. I'm pleased to report that we achieved our stated 2024 target of quarter-over-quarter revenue growth considering our reported revenue for the past quarter and today's fourth quarter midrange revenue guidance of $387 million. Gross profit for the third quarter of 2024 was $93 million compared to $87 million in the prior quarter. Operating profit was $56 million compared to $55 million in the prior quarter, which included $6 million restructuring income related to Japan operations reorganization. Net profit was $55 million, reflecting a 15% net margin or $0.49 basic and diluted earnings per share compared to a net profit of $53 million, reflecting $0.48 basic and diluted earnings per share in the second quarter of 2024, which included $2.6 million of net income from our Japan operations reorganization. Moving to balance sheet and future capex and cash plan. As of the end of September 2024, our balance sheet assets totaled $3.1 billion compared to $2.9 billion at the end of 2023, primarily comprised of $1.3 billion of fixed assets net of depreciation, predominantly comprised of fab equipment and $1.7 billion of current assets. Current asset ratio, reflecting the multiple by which current assets are larger than short-term liabilities, is very strong at about, and shareholders' equity reached a record of $2.6 billion at the end of September 2024. Our strong financial position enables us to plan the following investments in strategic opportunities that are aligned to our corporate vision. Approximately $500 million of total aggregate cash has been allocated to make investments in equipment that Tower will own in the 12-inch fab in Agrate, Italy, following the previously announced STMicro partnership. To date, we have already invested $400 million of this amount and have placed purchase orders for all of the equipment and other capex items required. The remaining $100 million is expected to be paid in the coming four quarters. In addition, as previously announced, we have committed to invest up to $300 million to acquire equipment and other capex items that Tower will own in Intel's New Mexico fab, enabling us to ramp up capacity and capabilities for our customers. This $300 million of capex is forecasted to be paid in installments until the end of 2026. Furthermore, as we announced today, we are executing the $350 million investment plan to expand FIFO and 5G capacity and capabilities for the qualification and ramp-up of these technologies in our 200-millimeter and 300-millimeter fab, given our growing customer demand. Payments towards this $350 million plan are expected in installments until the end of 2026. I wish to note that all the above investments, including today's announced FIFO and 5G capex investments, are within the steps towards achieving our business strategy and financial model, as previously presented by the company in November last year. In the model, we outlined a revenue target of $2.66 billion per annum that could be achieved by fully loading our existing facilities and our newly built and to-be-built capacity at the Agrate and New Mexico facility, which could result in $560 million annual operating profit and $500 million annual net profit.

The questions come from the line of Mehdi Hosseini from Susquehanna International Group. Please ask your question.

Thanks for taking my question. Two follow-ups here. I want to go to Slide number 6 and better understand revenue and gross profit opportunities, especially with 400G and above. Should we assume that because of the ASP premium, the revenue mix is much higher than the wafer mix? And I have a follow-up.

I'm sorry, I didn't quite understand the question. The what mix is higher than the what next?

On Slide number 6, you have the wafer mix between 400G and less than 400G and more than 400G. I'm assuming that for applications above 400G, the wafer average selling price is higher. Therefore, would the same slide presented with the revenue mix show a significantly higher proportion of revenue from applications above 400G? Is that a reasonable assumption?

It's a fair assumption, but I'm not sure that you're seeing the slide properly. This is only for active copper cable. The slide is not the overall silicon germanium mix. So certainly, the silicon germanium platforms that we are using for 800G or a more advanced platform yield a higher ASP than we would be doing at the 400G or 100G levels. For cables, it also ties to some extent, but most of the cables that we're selling are already going for above 400G or, as I stated in the script, mainly for 800G. So yes, the case we're selling had a very good ASP, but it's because of the higher-end platform. But most of what we're doing is for advanced speed.

Okay. All right. And then just looking at the overall silicon photonics market. In the past, you have highlighted an $80 million revenue opportunity in 2024, doubling to $160 million, and it seems like you are tracking above those targets. Can you give us an update here?

I don't mean to sound evasive, but I believe I did address this. Yes, the revenue is expected to reach about $100 million this year. As I mentioned earlier, we are seeing increasing customer demand in the short term and mid-term, which corresponds to a growing customer forecast. If we follow our shipping plan as projected, we will end the year with a silicon photonics run rate of around $150 million as we head into 2024. Without providing specific guidance or targets for 2025, it can be anticipated that we may more than double our revenue from $80 million to over $160 million, especially since Q4 is already showing a $150 million run rate. Thus, it is reasonable to say that we are currently exceeding the forecast we provided a quarter ago.

Great. Thank you.

The questions come from the line of Cody Acree from the Benchmark Company. Please ask your question.

Thanks for taking my question and congrats guys on the progress. Extremely impressive guidance. Glad to see it. Maybe, Oren, can we just get one clarification? You said the $350 million would start in installment payments and did say '26 or '28.

No, end of 2026. It will be spread. You may assume pretty linearly between now and the end of 2026.

Great. You just tailed off a little bit when you were making that comment. Can you maybe talk about the level of revenue that, that $350 million is expected to support if you just add incrementally to your slide, your $2.66 billion? What does the $350 million represent?

No, that's included in the model. Like I said in my closing remarks, this is within the model and towards achieving the model, we needed to do that investment. By the way, the capex is included in that model. So, there is no additional depreciation because of that. These are the steps that we needed to do in order to achieve this long-term $2.66 billion target.

I think the big point is that the model obviously was reliant upon certain technologies that customers would be needing and wanting that were aligned to roadmap activities that we have with them, and the fact that the investment steps are going and the important part is to say that it was all foreseen in the model, but it was aligned to long-term roadmap partnership and that going forward shows that what we had expected to happen is occurring.

Okay. Great. So just more detail then to the $2.66 billion. Maybe if you can talk about the types of agreements that you have with your customers for your RF SOI capacity. Obviously, that's getting ready to ramp and you've got a significant amount of capacity out there to fill. What kind of customer agreements, or if not contracts, what kind of assurances do you have that they're going to be there for you to support that capacity?

Currently, there isn't a single take-or-pay agreement in the RF SOI area. We have very strong relationships and track records with our customers. While there's no take-or-pay arrangement, in many instances, such agreements may not be beneficial. It's not favorable to compel someone to purchase what they don't need, especially in tough times. Our confidence comes from our ability to engage with numerous clients in this space. The specific front-end module market isn't particularly robust at the moment, but we've experienced significant growth. In Q3 compared to Q3 last year, we saw strong double-digit growth in the 300-millimeter RF SOI for advanced platforms. For the fourth quarter, we expect to see over 50% year-over-year growth for the 300-millimeter platforms. Our customers are gaining market share in a stagnant market, and as we collaborate on multi-generation roadmaps and support them effectively, we believe they will remain with us. It's challenging to qualify a new partner for a front-end module in the short to midterm. Ultimately, our long-term assurance is rooted in our performance and theirs in the interim, ensuring our partnership endures. The key is to have process design kits that align with performance outputs, giving customers a good chance at first-time success. We aim to closely address any issues during the design phase, which helps expedite their time to market, benefiting both parties. In summary, we do not have long-term take-or-pay agreements.

Okay. That's very helpful. And then lastly, we've been hearing some grumblings in the market regarding the potential uptake for active copper cables with some changes that are speculated in their NVL 36x2 platform at NVIDIA. Are you seeing any volatility in your wafer activity? Obviously, you're seeing a lot of strength given what you've been saying today, but just any color might help.

Very perceptive of you, and we have some wafers in line that indeed have been put on hold at a certain level to offer a mass change.

What does that entail, Russell, as far as your volume output?

I think it's not going to make much difference at all. It's just a question of keeping wafers at a certain inventory point, waiting for a new mask.

So, changes at the mass level would change how the copper cables are going to be deployed? Is that the way to think about it?

That will change the output parameters.

Any other color there, Russell?

No, I think that's pretty good color, actually.

The questions come from the line of Richard Shannon from Craig-Hallum Capital. Please ask your question.

Thanks, Russell, for taking my question. Great results. It's encouraging to see the infrastructure performing so well. My first question is about the silicon germanium segment, particularly regarding the 1.6 terabits. I'm curious if that will be a significant and visible contributor to revenues by the end of next year. Do you expect that timing to be material, or do you think it will still be growing from a small base at that time?

I honestly think it will be material. If you look at analyst reports for 2024 from 2 years ago, they all really had 100G being 80% of the market where probably 800G is 85% or 90% of the market for this year. The fact that we have good working samples is crucial for the end data center makers, the hyperscalers, to be willing to implement. But I do think the roadmap on speed is moving very quickly now. So yes, I believe it will be a material amount of revenue in the second half of next year and maybe starting in the second quarter.

That's very helpful, Russell. I have a question for Oren about gross margins. When looking at the quarterly fall-through, it's not ideal to focus only on the short-term perspective. Last quarter, the fall-through margin was impressive, but this quarter was lower, around 31%. You mentioned last time that the improvement was due to silicon photonics, which appears to be performing well. I'm struggling to reconcile these two points as they seem contradictory. Can you clarify the reason for this significant difference?

Yes. I think Russell addressed that in his remarks. He mentioned that the CIS, the machine vision sensor, did not perform as we expected, and the CIS is also high margin like the silicon photonics. So, the increase in silicon photonics which is very nice, impacted the margin in Q3, but was offset to some degree by the machine vision sensors.

I didn't mean to interrupt you, Oren.

No, no.

Okay. Russell, maybe looking forward here, trying to help people think about their growth expectations kind of linearity through next year. I know you probably don't get anything quantitative, but just kind of a framework to think about here. Generally, your first quarter is seasonally down. Wondering if you expect normal seasonality here? And then how do we think about growth going into next year? I mean the RF infrastructure looks utterly fantastic, power is doing pretty well, and it sounds like your sensor and image businesses are poised to inflect here. It seems like a pretty good growth year here. How would you help us think about these dynamics as we put our models together?

I certainly believe that the infrastructure markets served by the silicon germanium and silicon photonics will grow very strongly. Oren mentioned that the silicon photonics realizes very high margins, which actually come in substantially higher than imaging, which is also extremely high margin. So, I think as far as the contributions of the silicon photonics growth, it will be quite substantial and 5G will continue to grow throughout the year from everything that we see in customer forecasts. On imaging, we had mentioned earlier that Q1 was a low for us. Q2 was a substantial increase over Q1, and we stated at the Q2 level. But we had expected a very good growth forecasted by our customers, particularly for machine vision in the third and fourth quarters, which did not happen. I'm not going to give a target or guidance in the third quarter for 2025. We'll certainly provide good color on that when we release the fourth quarter. But that being said, for our plans right now, we're not factoring in any of the believed forecasted customer demand increases for imaging. In our plans, if imaging comes up at 25% or 50% increase, that would be fantastic, but it's not what we're counting on. In the RF-SOI, the market itself has stated is not overly strong; however, our customers are gaining market share. We would expect that there will be growth in RF-SOI. There will certainly be growth in 300-millimeter versus the 200-millimeter that we're doing. I'm not sure how much the overall market will grow next year, but I expect that we'll have growth. This is one reason that before we give a target for next year, we like to be as close to the end of the year as possible. When we release Q4, we will be within the year. So, I think we'll be able to provide good insight. From what lead suppliers to front-end modules are saying right now, it doesn't look like the mobile market is extremely strong in 2025, or at least for the first half of it. In the power market, that's an area where we always find opportunity to grow. Regardless of whether the overall market is growing or not, we're starting from a relatively low market share position, and the 300-millimeter platforms are robust, growing, getting qualified, and we now have free capacity in Albuquerque. Therefore, we'd expect to see growth in that in 2025. To what extent? I cannot say at this point. However, it is a good business for us as we have entered additional markets that we were not serving in the past. I think the easiest way to grow market share is by increasing your served market, which we've certainly done within the BCD 65-nanometer BCD and potentially expanding beyond that. But I'm not sure if that answered your question well, but it's as much as I can say at this point. That is helpful for us and we understand it's early, but your best perspective is always helpful. Thanks for that. My final question, I'll jump on the line here is just looking at the balance sheet. Noting a very strong cash position and obviously, you've been growing cash and expect to by all measures going forward, so I'm wondering what you're thinking about for cash usage going forward here? And I guess maybe I'll also turn this to more of a strategic thought process with your company, do you see any potential for M&A in any way, either operations or technology or anything to augment certain areas that you have, including silicon photonics and power, etc., to realize that? I'll start with the second part of your question, then Oren could address the first because I think he ended his section talking about our cash needs to fulfill this circa $2.7 billion plan. But as far as M&A, we're always truly actively engaged in various M&A opportunities. Now there are a lot of speculations about us going into a foreign country and building a large factory, etc., we're always reviewing potential opportunities. Some opportunities appear to be extremely positive at first glance. However, there are always considerations of risk versus reward when evaluating these deals. As soon as we identify opportunities that make financial sense, we proceed with them cautiously. It is advisable for large capacity increases to acquire existing operations rather than to pursue greenfield builds, which can take a long time to become profitable. Any large capacity expansions require certain conditions with either government entities or customers that would prevent our shareholders from suffering from cash losses during the initial years. Therefore, we must conduct a detailed analysis for each opportunity. It should be noted that there are typically 4 to 8 potential activities that we pursue, but we do not disclose specific details about these pursuits until they materialize. Before they become material, we are required to comply with disclosure regulations, and anything that ultimately does not close should not be viewed as failure. We are consistently active in exploring options that are accretive to our shareholders and align with our roadmaps.

I appreciate all that detail, Russell, as always. Congratulations on the great results. I will jump back on the line.

The questions come from the line of Nicola Doyle from Needham. Please ask your question.

Thanks for taking my questions. Also, a question on ACC. So, you're seeing the short-term and mid-term strength in your silicon germanium business enough to invest significantly for new capacity and some of that not all is related to ACCs. I'm assuming the strong demand and the capex decisions can surpass one customer or application. So, we've heard applications using Nick to tour or a vertical use case and also a newer inner rack use case at higher speeds. Can you provide any insight on what the other applications could be? Thanks.

To begin with, the bulk of our silicon germanium is not for active copper cables; it's for the TIAs and drivers. So that's where the majority lies. ACC is incremental revenue. Now the lead customers we have for the optical transceivers themselves are also those that are doing the active copper cables. However, within that incremental revenue demand for the ACC, I cannot distinctly specify what applications they're pursuing within the rack, as rack-to-rack scenarios often require more than just an active copper cable. But I can't provide much granularity on what our leading customers using silicon germanium at high volumes for the transceivers and also buying silicon germanium for the ACC, are planning to pursue across the total landscape of applications.

Okay. Still helpful. And then the next one, just a basic question on utilization. Fab 3 is at 65%, I believe you mentioned. That is, I guess, full silicon germanium and silicon photonics capacity with a 20% target increase. So can you explain how that incrementally will happen? I guess you're taking out certain capacity and refilling it with this silicon germanium and silicon photonics demand, and that's contemplated in the $350 million, and that's how you'll increase this utilization?

A very good question. There are bottlenecks that we have. Previously, we made some adjustments in that factory. We've encountered specific bottlenecks due to the transition from silicon germanium to silicon photonics. By adding and qualifying certain processing chambers, we're addressing these bottlenecks and enabling us to fully utilize our fab capacity. We present utilization against maximum capacity of the factory. Processing tools can restrict the flow of production; hence, to maximize throughput, we achieve an operational target of 85% utilization. We also leverage some capabilities in other factories, and that's part of the $350 million investment plan, which will promote further usage of different factories. Specifically, certain depositions can now occur earlier in one factory, subsequently relieving constraints in another.

The questions come from the line of Lisa Thompson from Zacks Small-Cap Research. Please ask your question.

Welcome you back to revenue growth.

Thank you.

I have a financial question, Oren. This year, we expected your tax rate to be around 15% to 14%. However, unless you pay a substantial amount in the fourth quarter, that seems unlikely. What are your thoughts on Q4 taxes? Additionally, what are your expectations for next year's tax rate, considering your various activities in different countries?

Yes. No, there is no expectation of a big chunk of tax payment. Our tax model, first, our tax regime is that the parent company in Israel has a tax rate of 7.5% because we are in a preferred zone due to our factory location. This is our preferred tax rate. In the U.S., it's 21%; in Japan, it's 30%; in Italy, it's 24%. But I wouldn't expect because of the headwinds Russell spoke about in previous calls that we will start to incur profits in Agrate in the coming quarter and in the coming year as well. Therefore, we will not pay that 24%. We are left with the 7.5% in the parent company, 21% in the U.S., and 30% in Japan. In our financials, you may notice that our average tax rate typically hovers around 10%, fluctuating between 8% and 14% depending on the quarter. We manage to keep it around this mark efficiently. For this year, there was a one-time benefit in Q1 from a settlement we reached regarding an audit that was quite favorable. We recorded this one-time benefit in Q1 '24. The tax rates for Q2 and Q3 were reasonable. This quarter was about 12%. The previous quarter was about 10%. Therefore, if you just exclude Q1's one-time benefit, we've maintained a range of 10% to 12%. I believe modeling a 10% to 12% tax rate for the coming year is quite reasonable.

This concludes our Q&A session. I will now turn the conference back to Mr. Russell Ellwanger for his closing remarks.

Thank you, and thank you, everyone, for participating. I thank all of the analysts for their insightful questions. To conclude today's call, 2024 promises to end as a strong performance year for the company, both in our financial results and strategic customer activities, securing our future. We are confident to continue executing on the exciting growth opportunities before us. Our unique capabilities in silicon photonics and silicon germanium, paired with deep first-year customer collaboration, enable us to maintain leadership as a trusted foundry partner. As the demand for higher data speeds intensifies, our innovations and investments are setting a solid foundation for future expansion, especially in advanced RF and power management segments. Our strong balance sheet positions us to act quickly on a variety of accretive investments, be it capacity or capability capex or partnerships. We're excited about our future and remain committed to driving exceptional value for our stakeholders. Moving into the holiday season, we wish everyone peace, happiness, and security. I also want to thank our employees worldwide for their relentless efforts and passion, and our customers worldwide for their faith in us in placing their success in a partnership with us. Thank you very much. On January 14 and 15, 2025, we'll participate in the 27th Annual Needham Growth Conference in New York. It will be our pleasure to meet you at this conference. Again, thank you for your support and for joining us today.

That concludes our conference for today. Thank you for participating. You may now all disconnect. Thank you.