2/6/2024

speaker
Dr. Chuck Matera
Chief Executive Officer

regarding VXLs, and Agnes will take the telecom question.

speaker
Dr. Giovanni Barbarossa
Chief Strategy Officer and President, Materials Segment

Giovanni? Yes, so let me clarify. Let me try to be clear. No, it's not. Okay, so we don't have a challenge from a supply standpoint, from the VXL standpoint. Of course, when you have a production of transceiver modules, there's a number of other things that need to happen, including test automation of assembly lines, you know, new... new processes, and of course, there is also an external supply chain, particularly around ICs, that will impact our ability to ramp. So everything is coming together. And, you know, based on the demand, the demand is definitely stronger than what we could supply. We are capacity limited, but not necessarily from a device standpoint, but just as an overall ability to ramp to the volumes that we have been caught by supplies. by our customers in terms of the most recent forecast versus previous forecasts. We are very aligned with roadmaps. We know exactly what the customers are looking for for next-generation products, and so we'll adapt our internal supply chain to keep up with the demand. Currently, we don't have experience. Going back to your first question, we don't experience a challenge from a VIX production standpoint. And I want also to recall that we have sufficient capacity for both internal and external suppliers. So we can manage that as we need to support our own transceiver business, obviously, as a priority.

speaker
Magnus Bengtsson
Chief Commercial Officer

Thanks, Giovanni. Would you take the telephone, for sure? Good morning, Chris. So in telecom, we saw growth in the December quarter over the October quarter by about 20%. And if we look out for the balance of the fiscal year, we expect double-digit growth second half over first half. And beyond that, in 25, as the market improves, we expect additional growth, both from the market coming back, but also a lot of the engagement we have with customers on design wins for new products. Great. Thanks, Magnus. Thanks for your question, Chris.

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