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spk00: build rate through mid-year given certain order delays in leading-edge logic. We remain optimistic for an improvement in the second half revenue volumes as the demand profile begins to build in advance of a stronger 2025 spending environment. That being said, our visibility remains limited to approximately three months given the return to normalized lead times in the supply chain. And with our current visibility, we are not yet seeing a meaningful uptick in demand for new systems serving the NAND market. The recovery in this market remains in the very early stages, and recent reports indicate that the improvement year to date is chiefly focused on technology upgrades. Given the strong etch and deposition intensity characteristic of the NAND market, we look forward to a more meaningful improvement in NAND demand driving a strong growth year for us in 2025. In other semiconductor end markets, the emergence of new technology drivers and process inflections such as gate all around and high bandwidth memory require an increasing use of applications that are highly dependent on the accuracy and repeatability of the fluid delivery systems. These include applications such as selective etch, ALD, deep silicon etch, ECD, and more. We have a role providing fluid delivery to all of these applications. And while the expected pace of EUV deployments has resulted in a current slowing in the build rate for 2024, as we move into 2025, we expect a significant increase in gas delivery deployment for Litho as well. Outside of semiconductors, specifically for our IMG business, we are also seeing improvement in the overall demand forecast as well as incremental share gains ahead within IMG's customer base in aerospace, in defense, as well as certain commercial markets. As each of these markets and applications continue to expand, we see opportunities for I-Corps to increase our revenue potential and continue to add breadth and diversification to our customer base. All of these factors build a strong story for I-Corps' revenue growth as the industry recovery accelerates. But it's our proprietary products, including our next generation gas panel, that we are most excited about. as our key initiative to drive overall gross margin expansion within our business. And this period of muted demand has enabled us to make steady progress penetrating our new products into the market. I'm pleased to report that we recorded our first revenue on some of our initial shipments of next-generation gas panels during Q1. By mid-year, we will have over 20 next-generation gas panels shipped and installed in the field, with most supporting our customers' evaluation tools that have shipped to device manufacturers. Our new gas panel contains about 80% proprietary I-Corps content compared to around 10% today, which will drive significant expansion of our gross margin profile. These tool evaluations typically take about nine months to complete.
spk01: Thank you for calling Income Conferencing. The next available conference specialist will be with you momentarily. Thank you for calling Income Conferencing. The next available conference specialist will be with you momentarily. Thank you for calling Income Conferencing. The next available conference specialist will be with you momentarily.
spk02: Conference Center, could I get a first and last name? Your line may be muted. Hello?
spk00: 80 basis points sequentially to 12.2% driven by improved factory efficiencies as well as the
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