Welcome, thank you for standing by. I would like to inform all participants that this call is being recorded. Parts of this call may also be reproduced at JP Morgan Research. If you have any objections, you may disconnect at this time. I would now like to turn the call over to your host, Harlan Sur. Great. Good morning, everyone, welcome to the Analog Devices Uncovered Series. This morning, we'll do a deep dive into the team's growing opportunity in the next generation gigafactories. We'll explore how the team leverages its strong position in factory automation, instrumentation and test, and edge compute to drive a solid growth profile in their Industrial business. My name is Harlan Sur. I'm the semiconductor capital equipment analyst at JP Morgan. From Analog Devices, very pleased to have Martin Cotter, Senior Vice President of the Industrial and Multi-Market segments for the team. Martin will give us an overview of himself, his responsibilities, take us through a short presentation. Good morning, Martin. Thanks for joining us today. Thanks for inviting me here to Wilmington, Massachusetts, the corporate headquarters of Analog Devices. Good morning, Harlan Sur. Thank you very much for coming and for taking part in this event. Yeah, I mean, I've been with the company quite a time, many decades, about 37 years-ish. I think at the beginning, it was very much a technical role, designing semiconductor products. Hopefully, some of those products are still being sold. In the intervening time, ran a few different businesses. About 2017, ran sales marketing across the company, and now for the last two years, I've been running the Industrial business. I have to comment that it is probably more exciting than ever to be part of the company in terms of what the opportunity we see. I'd like to share some of that with the audience today, just in terms of what we're seeing. No, thank you. Hey, thank you, Martin and Harlan. It's Mike Lucarelli. You guys know me. I'm not gonna do my introduction. Quick, forward-looking statements, a lot of words. You guys can read on your own time, so we'll go quickly to the next slide. Before I pass it over to Martin to give us a deep dive on Gigafactory, I just wanted to highlight a couple pieces of ADI. On the pie chart, you can see about 30% of our revenue is from sustainable use cases, those being Industrial and building efficiency, which we'll spend some time on today, but also mobility and grid and communications. It's important to say there's a 30% part of our revenue today that's growing quite fast, and that will continue to grow as a percent of our revenue in the future. Looking on the right side of the chart, there's a big push to net zero, and the only way to get there is through two ways: energy efficiency and renewables. Today, we're gonna really highlight how we're getting a 2x on energy efficiency in the factory, and Martin will talk about that. On the renewable piece, we'll do another deep dive or Uncovered Series in the fall on that area and how ADI is benefiting from that area. Martin, can you please kick off on energy efficiency? Sure. Thank you, Mike. Thank you, Mike. Yeah, this picture is something that really consumes us in terms of the mission that we're on. If you look at the world and what we need to do to get to 1.5 degrees, we're already at 1.1 degrees. We're on a path to massively see that. We need to reduce our carbon footprint by about 80%. There's only one way to do that, and that means deploying our technology into industry to make everything twice as efficient as it is today. Industry and buildings take about 50% of the energy of the planet. This is a pretty major mission. It really inspires all our team, and it inspires me in a very specific way. That going together with renewables, which will be a different event, I think we'll be able to explain what's behind all of this. The world of Industrial is in a very different place because of this. Okay, just taking a little deeper look at this. When we looked at the spend behind this in terms of capital, what was about $2 trillion in 2020, is going to about three times that in terms of the overall build-out of factories. If you go back, 10 years ago, Industrial really was mid-single-digit growth- Mm-hmm. ... because what you got was the occasional factory being upgraded. With this picture of the need in terms of multiple different areas, you see a big rollout of equipment as part of these factories. This is great for us. You know, things like making factories more efficient, or making new factories more efficient. It means that there's a 2020, 2030, there's about a 3x build-out on equipment. The other thing we're seeing is the content that we have in that equipment would have been about 2% to 2.5%. Now, it's about 3.5% to 4%. Just pick a couple of different legs to this set of secular trends. One is on the factories that will source more batteries, gigafactories. We're gonna go deeper into that today. Secondly, semiconductors. Everyone's heard about the CHIPS Acts in Europe and U.S. Thirdly, there are much more disruptive high-end manufacturing, which might require laser deposition for things like joints for people or for engine parts, which is very high content, much more efficient. Thirdly, of course, we are seeing real spend now on the need to make factories more efficient. That is very different than before. It's not just main changes today. It's significantly upgrading the efficiency of factories. I think the very public one would be World Economic Forum devices. I think, we've had Schneider be very public with four different factories, each 25% more efficient. Now I think you're seeing end customers spend money on these major, either new factories or upgrades. For us, we have looked pretty deeply into each of these, gives us about a $20 billion SAM, which is very exciting. It is fundamentally based on digital facts. This is the world of digital factories. Looking at what that means, just taking another little click into that. Traditionally, operation technology had somebody walking around with a clipboard, looking to see whether processes were taking down some temperature, pressure, is the process under control? Now, with this world of IT meeting OT, so information technology meeting operating technology, you have a very different factory. The connection of the factory, the network of the factory, must be much higher speed, so it goes from kilobits to gigabits. Secondly, the control. Previously, the control was plugging and pushing wires, so it was manual. That needs to be totally digitally switched, so things like IO-Link, we've got Software I/O, making that whole network completely efficient. That goes together with our Time-Sensitive Networking and connectivity, which gives us the gigahertz kind of rates. Of course, the whole objective is always on, always real-time information and the intelligent edge. It's really to do with supporting a fully automated control of the factory, where robotic systems or very sophisticated pumps, much higher efficiency motors, it could be in-line instrumentation, all driving for this newer, more sophisticated digital factory. As you can imagine, we're pretty excited about this picture. Seems like a simple picture, but I think, you know, we're seeing a huge experience about where they're gonna go with this. Whenever you've got IT meeting OT, you have to have a secure system. Security is required by this system. The intelligent edge, which the enabler of efficiency. Our mixed-signal solutions now are gaining a new life. It's a higher content. Just to be a bit deeper into what it means for us, I just put a couple of examples up here. A lot of the control is based on precision technology. Of course, we have the leading precision space in terms of the. A very simple case like motors. 70% of the energy in factories themselves. 35% of that 70% is motors. We're seeing the need for more efficient motors. Half of those motors are over 10 years old. It's incredible. That means connectivity. This is really long-range, robust, trusted connectivity, so it has to be time-defined, time-sensitive. It is one mile in a factory, in many cases. Precision measurement, of course, you know, the world of digital factory means you have to trust the measurement. It's always available, always on, always real-time data. That drives efficiency. The need for higher accuracy in terms of the measurement is a really difficult problem to solve, and we have a lot of history in being able to solve that problem. One of the things I'm really excited about is the deployment of power. Silent Switcher technology allows us to make the in-line measurement more efficient and the long-range connectivity system more robust. All of these four different core technologies go together to drive the future of digital factory. ... employ that into one of the cases. I think we've picked out gigafactory just to give a little bit more color. As everyone can imagine, the rollout of EVs means you've got to have a source for storage of power in lithium-ion batteries today, but it could be a different battery technology tomorrow. So we're very heavily deployed in terms of this technology. But what's really interesting to look at is how this new generation, they tend to be the most sophisticated, highest examples of a digital factory. So it starts out with being the highest content for us. Any new factory that's being built will be a digital factory. In this case, we're seeing the need for 12x the capacity in terms of the rollout of availability of lithium-ion by 2030. When you look at content, what you've got is lots of automated equipment. You first of all, got the connectivity, the control, and the edge. You've got a lot of automated equipment. There are some specific problems to solve with in-line measurement, which is much more deployed. I've just picked three examples here. There are nine different process steps which are on, in a digital factory. These three, it's interesting that our customers are bringing us in now to talk to the end-use problem so that we can improve these very significant areas of value for them. The ones I picked here are coding, which requires higher precision on the control of the robot. The robotic system needs to be higher precision. We need to be able to... Many cases, it's in-line instruments that will be deployed to make sure that the uniformity of coding is better. It's a mission-critical instrument that will be deployed. This is targeting as much as a 5% yield loss, so you can imagine how much that's worth to the end customer. Secondly, battery formation. You know, we have already got a very strong technology deployed in Automotive for battery management systems. This now is on the formation of the battery. The property of the battery, when it's formed, stays with it through its whole life, so it's very important. It takes about 20 hours of very controlled, precise charge, discharge to form a battery. We would like to have that. Our faster precision, we believe, can help with this problem. Thirdly, on the winding, you know, having very, very long rolls of aluminum to be perfect as part of the formation of the battery, we deploy in-line measurement to be able to look at where the defects are for that whole system. What it does is it reduces waste. All of these allow us to be more aggressive about capturing and delivering on value. There are many more that I could go into. These are just three examples. We are very excited about what today is a decent opportunity in terms of the business, but of course, it's going to grow at a very accelerated rate. It already is growing. We believe that by 2030, about $1.5 billion is the expanded opportunity, about 3x what it is today for us. We're still exploring exactly what we can do on delivering value to some of these specific problems I've outlined. All in all, a very exciting proposition. You know, it is delivering to the sustainability picture. It's one of a number of different places that we're seeing value generated. Looking at how real the deployment is, it's already happening. There are many of these factories announced. $250 billion capital being spent by $25 billion-$50 billion again by 2030. This is a number of about 190 factories that we're already seeing. Of course, some of our Industrial customers have high ambition on being part of this rollout, and they're sharing with us what we need to do to be part of this. We're very excited about what this is doing. We see a path that derives a $45 billion annual spend of that opening capital that I described by 2030. We see that our content, as I described, is looking very positive. This is an area that we're heavily invested in. A great example of digital factory and one of a number of examples. Just going a little deeper into content, as you can imagine, these factories have much higher flexibility, much higher precision in the control of robotics. We already have a position in robotics. If you go back, five years ago, it was maybe about $100 of content. The robot really was a fixed robot with just some joint manipulation. It had this huge metal cage around it that wasn't very flexible. Today, we're seeing content be quite a bit higher. Precision torque, it needs to get high precision on the torque to affect better outcomes in terms of the machining. Secondly, in terms of the arm, it's all a much more precise control. Thirdly, the connectivity, of course, it deploys something like an Ethernet solution, or for vision systems, it could be something from Automotive, like GMSL. We're seeing many technologies come into the today's deployment. Of course, tomorrow, we're seeing the high likelihood that that cage is gone, that the robotic system very much is flexible, autonomous, and that means more content for us. Yeah. It is very well able to perceive, very accurate in terms of positioning, and of course, then it derives better outcomes of some of those problems I mentioned earlier. We're pretty excited about this kind of content increase. I think we went through this in Automotive, where ADI's content increased significantly. Right. It's not too different from that we're seeing in terms of this picture, with very much mission-critical problems that we're solving. Secondly, we don't think about this often, but to make that very sophisticated factory like a gigafactory, the previous life was that you would sample a piece of the process, take it to the lab, and look at some measurement. It was more like a quality control process. What we're seeing in the future is, in many cases, the world of digital twin determines that there needs to be an in-line, mission-critical piece of equipment, which has got the highest precision. Usually, the equipment measurement is 4 times the precision of what it's measuring. It's extremely low noise, so it's a home for very low noise power, so power making the precision better. Of course, of course, the system is much more sophisticated. Something that has come to us from the Maxim acquisition, like Trinamic, which is stepper motor control, very, very precise control, together with ADI's precision converter technology and ultra-low noise regulators, is allowing us to derive a much better result in terms of the in-line instrument that we will have as part of these very sophisticated processes. Overall, our customers are telling us these same circular trends are showing up in instrumentation as well as in Industrial automation, which means that our ability to generate value is very high. Yes. This is what's getting our teams really excited. Just to anchor on a few key takeaways, I wanted to give a sample of one of the very exciting areas, that is the gigafactory. We can see that it's making a real impact in terms of the world of sustainability. You know, this 2x efficiency is something I'm very energized about, and so are my team. Secondly, I think, in terms of this overall ecosystem, our customers in automation as well as in the whole EV management system, the portfolio that we have, we are going deep now into the application in terms of our domain knowledge, and that's what's deriving this value. I think, our deployment, in many cases, one of these instruments has a couple of 100 different customers supplying that instrument. It's our knowledge of the application, making it easy to use, easy to adopt, that we think will make the difference. I think, in terms of this picture, of course, what we're seeing is. Yeah. It's an accelerator of growth. That step up, what would have been mid-single digits going to late single digits, this is one of the areas that's even going a bit faster than that and is part of this accelerator. Great. Now, that was a great overview. Do you have more on the presentation? I think that's pretty much the overall picture. I think, you know, it's an example of many more cases- Yes. that we're going to see. Our customers are telling us about this new world of IT meeting OT. This is one of the great examples. It's new factory builds, but we're seeing similar acceleration in terms of upgrading old factories to make more sustainable outcomes. I think one of the things that came out quite clear on the presentation and the gigafactory opportunity is that. We're gonna focus a lot on automation in our Q&A, but it does span multiple of your segments, right. Within your Industrial business, right, the in-line test and measurement, right. That's a part of your. Exactly. instrumentation and test franchise, right, which is a very big part of Industrial automation, another very big part of an Industrial. Exactly. Yeah. These are the secular trends that we're seeing really driving all of those businesses. You know, my responsibility is Industrial automation, including instrumentation- Yes. ... as a separate, business, and of course, power. Yeah. This is why this was such a good example. We're seeing those three come together Yes ... in a very special way to give a better outcome for the industry. Perfect. Well, we'll now dive into the Q&A. I have several questions lined up for you. That was just a great presentation. Back at your Analyst Day in April of last year, you know, you talked about, the team talked about factory automation revenue at about $1.4 billion sort of annualized run rate, about 25% of your Industrial business at that time. Can you just give us an update snapshot of the automation business, say, you know, what percentage of Industrial revenues does it account for? With the new opportunities like gigafactories, how do you expect your overall automation business to grow over, let's say, the next sort of 3-5 years? Yeah. I think you pretty much gave the, some of the context of this. It is about, I think as of the last quarter- Mm-hmm. $1.5 billion, so it is about a quarter of the overall Industrial business. As you can, imagine, this business would have been, you know, historically slower growth. Yes. We're seeing late single digits in terms of this growth picture. If you look at the gigafactory goes across multiple different businesses, right? If you look at the opportunity in terms of automation, we do believe that automation is now in for a more defined multi-year deployment. Mm-hmm. Of course, you're always gonna get the situation where, there is correction of inventory... Sure. After a very, very high year, couple of years that we've come from. We're seeing, and customers are telling us about this longer term deployment, like, for automation. Yeah. The content is a very big positive one for us, we would see that that grows at or above the picture we're guiding. Of course, gigafactory, in terms of that piece of the business, will grow faster. That's more like a significant double digit. We're seeing this as an area that we learn a lot from, and we can get very focused on the application in terms of deployment. You are the leader of the overall Industrial business for ADI. Does this change the team's long-term target of driving mid to high single digits growth in the Industrial segment? That was sort of laid out at the last Analyst Day. I think there are pieces of the business that grow faster. Mm-hmm. That's why we wanted to highlight this one. Yes. Longer term, I think it makes us very confident about that mid-single digit number. Right, Obviously, this is a stellar business for the company... Mm-hmm. It's quite, the problems that we're solving are becoming more challenging, and that's a great home for our innovation. We're seeing the domain expertise to be a positive momentum for us. I would say it makes a bit more confidence on the increased growth. Yes. I would say that there are areas that we're getting very confident and very strong pull on, like I've just described. Back at the Analyst Day, again, referring to the April 2022 event, back then, you sized your SAM opportunity in automation at about $6 billion by 2027. Here, you talked about the incremental SAM opportunity of $1.5 billion from gigafactories, right, by 2030. Given the new opportunities driven by the focus on gigafactories, how do you now size your overall automation SAM opportunity, and what percent of that will be driven by the build-out of these gigafactories? I think, on the charts that I showed, I think we talked about, ish, right? Right. versus today, it's about twice, the same opportunity. It's just honing in on an area that we very much directly see increased content. Of course, that will affect Industrial automation business. I think it'll roughly be the same percentage. It'll be about 25% overall. Yeah. I think what we're seeing is, taking this one element, it's about $1 billion-$2 billion of that $20 billion. Yes. In terms of gigafactories. It's one of a number of elements. I could have picked, for example, the build-out of semiconductor. Yes. I'd have to go into a slightly different version there, but I think the story is quite consistent, right? Yeah. I think we are seeing this expansion of our opportunity to be about 2x. Very consistent with what we're seeing, the expansion of semiconductor overall, but of course, our certainty in being able to capture more of the opportunity is getting stronger. As I mentioned before, I mean, the onset of gigafactories also drives demand for your electronic test and measurement, or what you guys call your ETM segment, which is a part of your Industrial sub-segment within instrumentation and test. Overall, as we talked about before, instrumentation and test is roughly another 25% of your overall Industrial franchise. Here, the team, you know, as you talked about, has developed some test solutions for battery formation, which is obviously a key part of these gigafactories. Can you give us a rough idea of the SAM opportunity as it relates to battery formation, in-line testing? How big of a business is that today? Obviously, it feels like it's going to be a much bigger part of the franchise a few years out. Yeah. I think, if you look at gigafactories, I showed three examples of those. Yes. Of which battery formation was one of them. Mm-hmm. There are nine different major process steps in a gigafactory. Each of them have different particulars, right? That have opportunity. If you look at the opportunity in terms of formation and test, it's about a tenth of the overall opportunity. Yeah. Think about it as maybe $150 billion-$200 billion. Yes. Uh, when you think about that picture in 2030. Um, of course, it has a variety of different requirements and technology. Uh, it is, uh, a really great problem to solve because the property of the battery formation stays with it through the life of the battery. So it has impact on our Automotive business in terms of being able to look at that over its whole lifetime. So we're seeing a mix of solutions from our BMS plus highest precision measurement to be part of making that formation twenty hours time shorter. We're still working on this. We have a, a strong, uh, position, both in the formation and in the battery use. Uh, and the life cycle of the battery is a very big area for us to consider. it's an exciting problem to solve, and it's one of a number that are part of the process steps in formation of the battery, in the gigafactory production. Many of the large auto OEMs themselves are setting up their own gigafactories, and these same auto OEMs are using your Automotive solutions, right, with their electric vehicles and just their overall vehicle portfolios, right? Your Automotive BMS solutions, your in-cabin connectivity solutions, your ADAS solutions, all areas where the Automotive franchise has a very strong leadership position. Does the familiarity and relationship with the team on the auto side give you an advantage, give you a seat at the table when you start to engage with these same customers on gigafactories? Yeah, absolutely, it does. You know, when you see the picture of, some of the Automotive customers have very much got their own special sauce that they want to deploy. Mm-hmm. We find that they're working with our big Industrial customers. Yes. in a lot of cases, and in a way, we're part of both. That's right. We're bringing the two together. It's not just one solution across all of the industries. Lots of those customers have their own particular solutions. We're seeing both our battery management systems that are deployed in the Automotive, in the car itself, being used in formation, as well as some of our very highest precision measurements, right? It's important that we can bring all of those parties together. Right. We're being invited to do that because we've got this kind of insight from... Yes. You know, we've been working with the Industrial customers for, you know, our whole lifetime. In many cases, EV is new, so it's the bringing together of both. Generally, we're getting right to the customer's customer and being able to do this. Yeah. That's where the insight and the application is coming from. We have very disruptive technology on the life cycle of the battery. Goes right back to the formation and to the use of the battery. You know, as the industry moves towards gigafactories, digitization of factories, driving demand for your automation solutions, these will require more sensing, edge processing, connectivity, robotics, as you described. In your product portfolio, you have a mixture of digital processing and control, analog mixed signal, power, connectivity products. Help us understand the mix of these products within your automation or maybe even just within your Industrial business, right? In other words. Within your total automation revenues or digital factory revenues, what percent is analog? What percent is digital control and processing? What percent is power and so on? Well, as you can imagine, fundamentally, these are edge-based problems, right? Mm-hmm. I know we talk about the network. Yes. The switching enables this really great intelligent edge. Fundamentally, most of it is a measurement problem, which is about two-thirds analog, about one-third power. Mm-hmm. I would say that the need for flexibility is driving the need for some embedded processing. Yes. Also security is a big feature. Mm-hmm. We are needing to make these secure with very localized insights that are being derived. Anytime you get a control system, latency is very important. Yeah. It's about two-thirds analog, I would say, and one-third power, generally. We are seeing the need to make the analog more intelligent. Yes. That means we're embedding. I'll give you one example. The highest speed of capture, which is used for something like a scanning electron microscope. Yeah. which might be used here, has our latest generation of very high-speed technology. It's not only precision. The fact that we can do that means that we can now accelerate the localized processing with an embedded digital. Our power solution is about, even though that's a very high value to get, you can imagine the highest speed processing, is very high value. The power to be able to drive efficiency on that is also very high value. It's about a third of the value. We're seeing, we've got already very high share on analog processing. Mm-hmm. It's a good opportunity now for us to increase share with this, low noise, low EMI, power processing and embed digital, but digital that really makes a difference, right? It could be, the digital solution could be deriving security, or it could be deriving some localized insight. That's what effectively makes the difference in the application, being able to combine all those- That's right. in the application. The algorithm is often very valuable. That's a good segue into my next question, because, you know, as you guys laid out last year, you've been moving up the stack, right, with embedded digital software solution stacks to drive higher content, deliver more complete turnkey solutions. What power of your sales tied to more system solution sales, reference design solutions, and how much software do your products encompass? That's a very active debate within the company in terms of where we're going. I know we've messaged this world of intelligent edge. Mm-hmm. Quite a bit, but it's very real. Yes. One way to think about it is, in many cases, the solutions, need component technologies, so we have to lead on the core technology side. By far and large, I think, my business has lots and lots of components. Some of those are 20 years old. Mm-hmm. Half of them are more than 10 years old. What you get in these applications is, I'll give you an example. something that enables Time-Sensitive Networking at gigabit-type speed, that's basically a transmission, transceiver, right, device? Yes. Yes. The value of that device, we add the same as, same again, in terms of components around it. This anchor plus attach is a big part of what we're seeing. What that does is, it renews design ends of products that might even be 15, 20 years old. The world of the solution needs a lot of components. We are going to market by delivering the impact in terms of the end solution. The fact that we've got these anchor investments on these newer areas, as well as the solution- Yeah. -is really what's driving it. I think, I could show examples in many, many different cases of these application-based products that we're doing with some flexibility. Mm. driving a lot of it. I don't think the component business is going to reduce anytime soon. That's right. In fact, it's getting a little bit of a higher momentum. We're seeing these application-based systems, even though they might be made up of components, it's effectively recombinant innovation. In many cases, we're seeing them to be a bigger part of what we do and grow significantly faster. Perfect. As a team, as you pointed out in your presentation, you know, there are more than 190 new gigafactories planned worldwide, driving roughly 10 factories per year, $45 billion of annual CapEx spend by 2030. Given your portfolio breadth focused on gigafactory, how should we think about your overall market share, and how do you think about the share mix within the different geographic footprints of your customers in gigafactory? Well, as you can see from, the picture, right, there was, you know, there's deployments that are in U.S.-. Yes. -Europe and Asia. Our sales are pretty much agnostic to whether it's U.S., Europe or Asia. We concentrate on where the design is completed, so we're very active in every region. I don't really see that changing so much. I would say in terms of share, you can imagine, as we solve more of the problem, we're getting more of what we have designed in every case. We are very committed to going deep into using our technology to really make the impact. I gave some examples. Yes. I'll give you some examples and something like the stepper motor, where it would have been components that we would have deployed in a standalone case. Mm-hmm. Now, the fact that we can get significant reduction in energy from the Trinamic motor system-... means that our attach rate is much higher. Yeah. We feel that this kind of insight is what's driving progression of share. In precision, we already have very strong share. I think when you look at power, we're able to bring power with these solutions more. And of course, we've got the deployment of other embedded processing locally that also is driving this. Overall, I think we feel confident as we go to these end impact solutions, we feel like it's an opportunity. Let's talk about your acquisition synergy strategy, right? Specifically, post the Maxim acquisition in 2021, the team laid out a revenue synergies target with the Maxim product portfolio, driving a, you know, $1 billion over the next five years. Maxim also has some leadership in areas of automation. You pointed out some of them, high-speed I/O, digital programmable logic controllers, or what we call PLCs, power management, low power MCUs. As you think about automation, the digitization of the factories, gigafactory opportunity, help us understand where you're exploiting the synergies with the Maxim portfolio, and can you maybe even quantify within the $1 billion synergy target, how much of that is coming from synergies within your automation/digitization of the factory sort of portfolio? Yeah, I think it's a very topical discussion, right, that we have in terms of each of our customers. When you look at this world of IT meeting OT, so information technology meeting up, anytime you connect to the network, you have to have security. Yes. We have, thankfully, we've got a processor portfolio from the Maxim acquisition that brings with it some security. If you look at our analog functions, they already would be very strong, but needing security. That, that's an example in terms of the connected factory. Europe is now starting to legislate for security, so you cannot have the CE label. It's being voted on now. For as little as two years from now, you'll have to have the security standards upgraded. Secondly, you can look at the combination of, you know, power with very, very high efficiency, plus the need for a better process, and we would have gotten some advantage of the process from Maxim. That drives much higher efficiency in a lot of these solutions that we have. It might be only a couple of percent of efficiency going from 91% - 93%, but if you look at it, 9% loss, it's a third of the loss, right? It's a very significant impact. Putting together, very, very high performance power with some precision and security from Maxim, with some precision conversion from ADI, that's part of how we can derive this big synergy number. It's very real. You know, we're seeing, the ability to gain share, be there because of it, but more the ability to complete the full application system. Perfect. Near to midterm, you know, we are in the midst of a down cycle, but your Industrial franchise has performed extremely well, right over sort of trailing four quarters. Your business franchise is up 25% year-over-year on a pro forma basis, that's including Maxim. Looks like the team is on track to sustain sort of a flattish revenue profile in your Industrial business this year. Within this profile, help us understand how the factory automation, gigafactory, digitization of the factory, segments of your business has performed, and how are these subsegments expected to perform with some of the near term normalization of overall demand over the next few quarters? Yes. When I think about that, I really think about the secular trends, right? Mm-hmm. If you look at a situation where people talk about pulling back in terms of spend in the short term, there's a rebalancing of inventory. You know, it does go up. Yes. What customers tell us is really about the long-term deployments. Some of these, you know, I talked about sustainability. We talked about the secular trends now going from being recommended to being legislated. Something like a motor system I talked about before, that was a recommended motor, which is half the motors are 10 years old. That was a system that might be an IE1 motor or before that. From July of this year, you mandate that it has to be an IE4 motor, which is about 15% more efficient than the previous motor. The reason I mention this is, we've gone from looking at secular trends being recommended to now, in some cases, even being legislated. Yes. I think, and customers are telling us that this picture of deployment isn't only one year. Last year was a great growth year. I think, you know, we are looking at, some elements of, next quarter. We talked about, you know, maybe some. Yeah ... position. As you look to the year, it will be a record year. Yeah. for Industrial business- Right This will be a record year. Okay. The next number of years, our customers are telling us that those deployments will last between 3 - 5 years. I can't always tell you in the short term what's going to happen, but I can tell you that this business will perform stronger, I think, than history at the late single digits, and probably a bit stronger than that in some cases. We have a very good track now on this 2030 picture of twice the opportunity in terms of SAM, and that's coming from our customers asking us to do more. The world has gone from one of minor upgrades to one of very significant changes. And that's all driven by the insight of the semiconductor becoming more important to the end use. I think, you know, you see a lot of places that semiconductor content doubling by 2030. Very much that's the picture we're seeing in Industrial. I think you'll see this business grow, much more at the level that we talked about, and segments of this business grow faster. Perfect. We'll end it on discussion on obviously, the team drives best-in-class profitability profile. Your Industrial business financial profile is accretive to your gross and operating margins. Within this, how does the overall profile of the automation, digitization factories, and all the products that sit underneath that, how do these segments compare relative to the overall Industrial gross and operating margin profile? Yeah. As you can imagine, you know, the Industrial business is at the highest end of the profile. Yes. It's the highest margin business. The picture of a very moderate GDP kind of growth was there five years ago when there wasn't that much deployment. You put that together with our ability to build full solutions, we're very confident that the automation business will be very, very positive in terms of growth going forward and much stronger position in late single digits compared to what it would have been. Of course, the performance of the business we see with these higher values being generated, it's solving more difficult problems. The intelligent edge is the future. We're the source of the data. We're kind of where the data is born. We're seeing that be the spur to the business growth in the next 3 - 5 years. Of course, short term, we've talked about it. Right. Long term, we don't see anything in terms of this picture of opportunity because of these secular trends that look like they're becoming even more of an accelerator. Yeah, absolutely. Lots of growth profiles, lots of growth opportunities ahead of the team. Martin, thank you very much for your insights today. Really appreciate it. Thank you very much. Thank you. Thank you.