Hello, and welcome to today's Alpha and Omega Semiconductor fiscal third quarter 2022 earnings call. My name is Bailey, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press Star followed by one on your telephone keypad. I would now like to pass the call over to Gary Dvorchak. Gary, please go ahead. Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor conference call to discuss fiscal 2022 third quarter financial results. I'm Gary Dvorchak, investor relations representative for AOS. With me today are Dr. Mike Chang, our CEO, Stephen Chang, our President, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for seven days following the call via the link in the investor relations section of our website. Our call will proceed as follows. Mike will begin with strategic highlights. Then Stephen will provide business updates and a detailed segment report. After that, Yifan will review the financial results and provide guidance for the June quarter. Finally, we'll have a question-and-answer session. The earnings release was distributed over wire services today, May fifth, 2022, after the close of the market. The release is also posted on the company's website. Our earnings release and this presentation include certain non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures that we provide. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. We remind you that during this conference call, we'll make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially from such expectations. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided in today's call. Now, I will turn the call over to our CEO, Dr. Mike Chang, to provide strategic highlights. Mike? Thank you, Gary. I would like to welcome everyone to today's call. It is good to be speaking with all of you again. Q3 was another great quarter, and once again, we succeeded in outperforming our guidance. Revenue was a record $203 million, which represented 20% growth year-over-year, and it was the first time in our history to cross the $200 million threshold. This was achieved by obtaining additional wafer capacity from our existing foundry partners and continuing to optimize product mix. This resulted in non-GAAP gross margin of 36.7% and a record non-GAAP operating profit margin of 19.9%. Non-GAAP EPS was $1.34, representing a 74% growth year-over-year. I am extremely proud of this result and continue to be amazed at our team's effort and ability to execute quarter after quarter in such uncertain and challenging times. However, I am very saddened today by the evolving situation in China, particularly the lockdowns in Shanghai. As you know, our in-house packaging and testing facilities are in Shanghai, which handles a good portion of our final packaging and testing requirements prior to shipping. After the initial lockdowns were imposed in late March, our Shanghai packaging and testing facilities remained operating because our dedicated employees made an extraordinary sacrifice to live inside the facility to keep operations going. However, continuing operations required daily testing and negative COVID results. In early April, a few of our employees tested positive for COVID-19, and our operations were forced to shut down by the Shanghai government. Therefore, our ability to complete the assembly of our products and ship to customers were severely limited. Fortunately, at the end of April, the Shanghai government classified AOS as an essential business and cleared us to restart operations. We are quickly getting production starting again. However, the pace at which we can resume for full operations still remains challenging due to difficulties in bringing back the labor workforce, procuring certain raw materials, and resolving logistics bottlenecks. At this time, the timing of when the lockdowns will be lifted is still unknown. Even after the lockdown for the city is lifted, we expect some time before all the support supply chain issues are fully resolved and business there returns to normal. As a result, we expect our revenue in the June quarter will be impacted based on the latest estimate, including three weeks of limited operations during April and ongoing logistics and supply chain challenges. We expect the lockdowns will impact June quarter revenue by approximately $20-25 million. However, we still anticipate June quarter revenue to be around $190 million. This represents 7% growth year-over-year. Excluding this Shanghai lockdown impact, we estimate growth would have been 20% year-over-year for the June quarter. As our operation went back to full capacity and the surrounding supply chains normalized, we do anticipate to recover a portion of the lost revenue in the second half of the calendar year, as our wafer production was not impacted by the lockdown. As a result, we actually build a stock of preassembly stage wafer inventory. Given the global wafer shortage over the past years, we expect this buildup of wafer will help fully utilize our packaging assembly lines once things return to normal. Yifan will provide more details on our guidance during his portion of this call. Please understand, gross margin is currently more difficult to forecast as our allocation mix for each business line is still moving around while we re-ramp our assembly lines. On a positive note, we have been strategically diversifying our packaging and testing operations, and have begun to accelerate the pace of these initiatives. Our Chongqing JV already handles a good portion of our back-end requirement, and we also have begun the process of outsourcing some of these steps to other contract manufacturers, although that will take some time. Also, I think it goes without saying, we are very thankful to have our Oregon production facility, which is not exposed to this kind of risk. The impact of the Shanghai lockdown to our operations highlights the benefit of our capacity diversification strategy. We believe this impact will only be temporary and it will make us even stronger in the long run. The global trend of electrification of everything is just getting started, and our power product sits at the forefront of that trend. We are building a very resilient and diversified global business, and remain well on track towards our goal of achieving $1 billion annual revenue and beyond. Before I turn the call over to Stephen, I want to say our hearts go out to everyone in Shanghai that have been affected by this situation, and we pray for a quick resolution. I also want to give a very special thanks to our employees for their extreme sacrifice and dedication during this very challenging time. Their dedication to us has really been awe inspiring, and it made me realize once again how special our team truly is, and I'm very grateful to have their support. Thank you, and I will now turn the call over to Stephen for an update on our business and a detailed segment report. Stephen? Thank you, Mike, and good afternoon, everyone. I will start with an update on our business and then provide color on our segment results. In the March quarter, we once again set new records for revenue and profitability, driven by strong demand across all our business segments, particularly among our tier one customers. The current favorable supply and demand environment has given us more ability to optimize our shipment allocations to higher margin and strategic accounts. Moreover, we can quickly adjust to changes in customer orders by strategically redistributing parts to other parts of the business. Looking forward, in addition to the challenges of the ongoing lockdown situation in Shanghai, we are beginning to see early signs of a market demand slowdown in certain of our end markets, such as PC, smartphones, and home appliances. However, our total backlog is still a lot higher than our current capacity to meet it, even after baking in macro softness. While the Shanghai situation has been very unfortunate, it serves as a tangible reminder that our strategy to diversify our supply chain is the right one, and it further strengthens our commitment in that direction. In the March quarter, we accelerated our Oregon Fab's R&D facility upgrade and capacity expansion. We purchased more advanced lithography and related production equipment and continued the clean room construction. The project remains on track to be completed at the end of the calendar year and will contribute to approximately $70 million of additional annual revenue once in full production. Further, we also received additional wafer capacity support from our third-party foundry partners, as well as our Chongqing JV. Now let me drill down into each of our business segments. Unless otherwise noted, the following figures refer to the March quarter of 2022. Starting with computing, revenue was up 28% year-over-year, up 2% sequentially, and represented 44% of our total revenue. These results were somewhat stronger than our prior expectations, as the March quarter is typically our seasonally weakest quarter following strong holiday shipments. The main driver of this outperformance was continued strength in notebooks, particularly from OEM customers that have a higher concentration of their business serving commercial laptop applications. We believe this was driven by return to office trends and companies refreshing employee work laptops. We deliberately targeted a higher mix of commercial projects during the past years, since our Power ICs and power MOSFETs have higher performance specifications and higher prices that better suit commercial markets. This benefited us as the consumer market is beginning to see weakening demand. Finally, in computing, we also saw continued strong demand for our products in high-end and gaming desktop PC applications. Looking ahead, we do see early signs that the PC market is beginning to soften. However, overall demand for our products remain much higher than what our capacity can fulfill. In the June quarter, we expect the computing segment to be lower due to temporary operational limitations and lockdown in Shanghai. We are optimistic that we can recover a portion of lost sales in the second half of the year once Shanghai returns to normal and as we ramp for our seasonally strong September quarter ahead of holiday sales. Turning to the consumer segment, revenue grew 24% year-over-year and 14% sequentially and represented 22% of total revenue. The year-over-year growth was driven by share gains in gaming with a tier one OEM. The sequential results were largely in line with our prior guidance, as the timing of some gaming shipments near the end of the quarter were delayed, but we anticipate to catch up in the June quarter. Looking ahead, home appliances are slowing, which is one of the larger revenue contributors to our consumer segment. We expect the June quarter to decrease high single digits sequentially, but due to overall capacity constraints, we are able to shift production to other segments to offset revenue impacts. Next, let's discuss the communication segment, which was up 6% year-over-year and up 14% sequentially and represented 14% of total revenue. This segment performed slightly better than expected due to stronger demand for our battery protection products from the leading U.S. smartphone maker and share gains with Chinese OEMs. Looking forward, we expect June quarter shipments to remain flat at these levels sequentially. Finally, let's talk about the Power Supply and Industrial segments, which accounted for 19% of total revenue. This segment was up 16% year-over-year and down 0.3% sequentially, which was slightly better than our expectations. In the March quarter, we strategically reduced allocations to our AC-DC Power Supply and Quick Charger business following strong consecutive quarters of shipments and anticipated China smartphone weakness. Outperformance was due to strong demand from our power tool customers. This is an emerging application for us with great synergy given our product strengths in low and medium voltage products targeting battery management and brushless DC motors. Looking forward to the June quarter, we expect to maintain about the same level of allocations for our power supply and industrial segments, and therefore anticipate revenues to remain about flat. To wrap up, the Shanghai lockdown has temporarily stalled our momentum and really stress tested our entire organization. However, the situation also brought to light aspects about our business that we didn't appreciate enough before, like the extreme resilience and dedication of our employees and the level of support from our business partners and customers. We are immensely grateful for this and are even more driven to keep working hard towards our goals of $1 billion in revenue. With that, I will now turn the call over to Yifan for a discussion of our fiscal third quarter financial results and our outlook for the next quarter. Thank you, Stephen. Good afternoon, everyone, and thank you for joining us. Once again, March quarter was a record quarter for us from the top line to the bottom line. Revenue was $203.2 million, up 5.1% sequentially and up 20.1% year over year. In terms of product mix, DMOS revenue was $140.6 million, up 4.1% over last quarter and up 14.6% year over year. Power IC revenue was $60.4 million, up 9.6% from the prior quarter and up 39.1% from a year ago, which puts our Power IC revenue over $200 million annual run rate. This reflects our strategic actions to drive Power IC business to enhance our product mix. Assembly service revenue was $2.2 million as compared to $3.2 million last quarter and last year. Non-GAAP gross margin was 36.7% flat quarter-over-quarter, and up from 31.9% a year ago. Non-GAAP gross margin excluded $1.3 million of share-based compensation charges as compared to $1.7 million for the prior quarter and $0.4 million last year. In addition, non-GAAP gross margin excluded $0.8 million of amortization of purchased IP, the same amount as last quarter and a year ago. Non-GAAP operating expenses were $34 million compared to $33.5 million for the prior quarter and $30.9 million last year. Non-GAAP income tax expense was $2.3 million compared to $1.3 million for last quarter and $1 million a year ago. The quarter-over-quarter increase of tax expense was primarily due to higher profit, as well as increased stock-based compensation for employees from the higher price of our stock in the March quarter. In sum, non-GAAP EPS was $1.34 per share as compared to $1.20 for last quarter and $0.77 a year ago. Moving on to cash flow. GAAP operating cash flow was $61.8 million, which included $6.4 million net customer deposits. By comparison, operating cash flow in the prior quarter was $50.8 million, which included $11.2 million customer deposits. Operating cash flow a year ago was $33.3 million, which included $20 million customer deposits. EBITDA was $48.4 million compared to $46.7 million last quarter, and $36.2 million a year ago. Let's move on to the balance sheet. We completed the March quarter with cash balance of $323.1 million compared to $269.3 million at the end of last quarter. The cash balance a year ago was $192.1 million, which included $33.8 million at the JV company. During the March quarter, we drew down a $45 million equipment loan at our Oregon Fab and repaid $2.3 million on our existing term loans. Therefore, at the quarter end, our bank borrowing balance was $65.2 million compared to $22.7 million a quarter ago. In terms of trade receivables and inventory, days sales outstanding for the quarter were 28 days flat quarter-over-quarter. Given the uncertainty of the global supply chain, we increased our inventory balance by $14.5 million, primarily in raw materials. Average days in inventory were 94 days, reduced by 11 days versus last quarter, primarily due to the impact of deconsolidation of the JV company. Finally, property, plant and equipment was $245.8 million, an increase of $49 million quarter-over-quarter. Our capital expenditures for the March quarter were $43.4 million. We expect a similar level of CapEx for the June quarter. Our Oregon Fab expansion project is on track. Clean room expansion was over 80% done at the end, at the quarter end, and a small portion of the equipment has been moved in. We expect the clean room construction can be completed and the majority of the equipment can be moved in during the June quarter, and we anticipate additional capacity to come online in the December quarter. Now, I would like to discuss the June quarter guidance. We expect revenue to be approximately $190 million ±$10 million, primarily reflecting the production lost at our Shanghai factory due to the impact of the Shanghai COVID lockdown. Our Shanghai factory has resumed partial production at the end of April. This guidance is based on the assumptions that our Shanghai factory can remain COVID-free and continue to gradually ramp up its production in May and return to normal production in June. GAAP gross margin to be 31.9% ±2%. We anticipate non-GAAP gross margin to be 33% ±2%, reflecting the estimated impact of lost production and incremental expenses needed to cope with the Shanghai COVID shutdown and the pro-production recovery. Non-GAAP gross margin guidance excludes $0.8 million amortization of acquired IP and $1.3 million of estimated share-based compensation charges. GAAP operating expenses to be in the range of $44.3 million ±$1 million. Non-GAAP operating expenses expected to be in the range of $36 million ±$1 million. Non-GAAP operating expenses exclude $8.1 million of estimated share-based compensation charges and $0.2 million of estimated legal expenses relating to the government investigation. Interest expense to be approximately $0.8 million and income tax expense to be in the range of $1.3 -1.5 million. With that, we will open the call for questions. Operator, please start the Q&A session. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, it is star followed by one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. Our first question today comes from David Williams from Benchmark. David, please go ahead. Your line is now open. Hey, good afternoon, and congrats on the spectacular results. Thank you. Thank you. Thank you. Yeah. We certainly see and understand the lockdowns in China. I know it's a very challenging situation for you and your employees. I wanted to see maybe if we could spend a minute and talk about the appliance market. You said you're seeing some slowdown there. Do you see that maybe from a geographic perspective? Is it more broad-based? Do you get a sense that maybe it's a demand side issue, or is it simply more kitting issues, where others are being affected with component shortages as well? This is Stephen. We're seeing it a little more from the demand side. It is, you know, the ongoing trend towards variable speed motors, you know, is still ongoing. The overall trend is moving. In terms of the shipment growth, it appears to be slowing down a little bit. I don't think it's necessarily geographically concentrated. Okay, fantastic. Thank you. Maybe if we kinda think about the OpEx side, it looks like in June you're expecting about a $2 million sequential increase there. Is there any component of that or maybe to what magnitude is the lockdowns in China contributing maybe to some of that step up in spending? David, yeah, this is Yifan. The guidance in our OpEx, yes, primarily, you know, we are anticipating some additional investment in our R&D and sales and marketing areas, and, you know, hiring activities are there to support our business growth so that, you know, our goal is to achieve $1 billion in revenue and beyond. We are investing. Yeah, some expenses also baked in for the related to those recoveries. By and large, it's the investment in our R&D and sales and marketing area. Okay, great. Thanks. Maybe one more just on the gross margin side. Obviously, some impact there. Understandable. How quickly do you think that can recover? Can we see it return back to the pre lockdown levels? Maybe what pace can you continue to maybe see some expansion there on the mix shifts? Well, for the September quarter and ongoing, you know, we have to wait until next quarter's guidance. I mean, then right now, the situation over there is quite a bit challenging. We have to wait next quarter to give a more accurate estimate. Okay. That's fair. I guess, do you get a sense that you can recover the margin profile as you move forward in more normalized, notwithstanding further shutdowns? Do you think that's the case? 'Cause it seems like those changes for the margin side at least have been very structural in nature, and it seems like those would rebound once you get there. Do you think that's the case or is this a new level for margin? Oh, yes. At this point, yes, we would expect, you know, our business is still intact. We are confident that we can continue to grow. Business is still there. It's just temporarily right now got impacted by the Shanghai production loss. Thanks much. Certainly appreciate it, Yifan, and the best of luck. Thank you. Thank you, David. The next question today comes from Craig Ellis from B. Riley Securities. Craig, please go ahead. Your line is now open. Yeah, thanks for taking the question, and congratulations on annualizing revenues at over $800 million in the quarter, guys. Nice accomplishment. I wanted to follow up on the China packaging facility issue in Shanghai. Clearly we have a shift in revenue from the fiscal fourth quarter out into fiscal 2023. The question is this, do you think, based on your interaction with customers that you can recapture 65%, 75%? How much of the $22.5 million at the midpoint gets recaptured? And then what's your sense based on the product programs that you're involved in and when that happens, would it be 75% in the first half of the fiscal year and the balance in the second half? How do those dynamics play out based on how your salespeople and other folks are interacting with customers? Oh, yeah. Then, okay. I mean, this we would expect, yeah, a portion of the production loss we can catch up because, you know, our overall wafer production was not impacted. You know, our Oregon and our foundries and the joint ventures continue to produce wafers. Right now we actually accumulated some wafer inventory on hand, you know, in the time of April. I mean, we would expect that our back end can catch up some once things go back to normal. You know, in terms of percentage, it's hard to say, and I mean, it depends on the production's dynamics in the second half of the year, but we would expect a good portion of it we can recover. Okay. It sounds like it's at least half and maybe more than that to either recover timing a bit TBD. One of the things you mentioned that in response to what was happening in Shanghai, Yifan, is that the company is looking at moving some of the work to Chongqing and looking at moving some of the work to external back-end partners, and so that might imply a product requalification. The question is this, for the changes that are being made, what's the incremental cost of packaging, whether it's moved to Chongqing or externalized, and to what extent is that in the 33% gross margin guidance? The question David asked earlier, to what extent does that linger in the back half of the year? I mean, you know, right now, you know, the production planning and then, you know, customer coordination, all those things and kind of are still ongoing. I mean, right now it's kind of fluid, you know, at this point. The 33% on estimate for the June quarter's gross margin, non-GAAP gross margin, is primarily based on the, you know, the lost production, you know, in our Shanghai facility and some incremental expenses, and we have to deal with the Shanghai lockdowns and, you know, logistics challenges and transportation, you know, those things. You know, I would expect, you know, good portion of it and that we can return back to normal, you know, in the second half of the year. Yeah. That's my current then estimate. We have to wait until next quarter to give a more clear guidance. Yep. That's totally understandable. It's been a fluid issue over the last two plus years now, right? Moving on to some product-related questions. I wanted, Steven, to ask you a few things. One, given the real heightened focus on the mix of the PC market for investors, can you just give us some sense of what you think your enterprise mix would be versus consumer mix and compute? Then related to compute, I think it's generally well understood that there's some very significant gaming card product refreshes coming, some of which, based on a lot of the information that's out there, could be significantly higher power. Can you just talk about how you're looking at content in the gaming card business as you move into the back half of the year and we move into what is typically a period of product refresh activity for your customers? Sure. You're asking about the graphics card specifically, right? Is that right? Well, there is a two-part question. The first is just computing mix on the PC side between consumer and enterprise. Then the second one was the gaming card question. Sure. Let me address both. On the PC side and in general, AOS over the past year, a few years, has been gravitating more towards addressing commercial applications within PC. This is kind of the nature of our product mix. As we, you know, develop more higher performance MOSFETs as well as higher performance power ICs, we naturally, you know, gravitate towards the higher performance sockets. Those tend to be used in commercial platforms at both our notebook as well as our PC customers. In general, you know, content can be significantly higher. I know it depends what you're comparing against. Consumer also can vary from Chromebooks all the way up to even higher performance consumer laptops. In general, I would say that the BOM content for commercial type and platforms are generally, you know, 30%-50% higher BOM content potentially. You know, depends how many ports there are, depends, well, on what kind of processor you have that needs to be powered, and that determines the BOM content within a PC. Okay. On the gaming That's the first part. Gaming card side. Yep. Yeah. On the gaming card, yes, you know, we're in the process of designing and getting a design into the next platform at our big graphics card customer. We are expecting content to increase. There are more phases. The phase count is increasing in general. So that basically means, you know, more driver MOSFETs that will be used there. We still are in that design and in mode right now. So it's a little early to comment on the portion of the business that we'll be getting. But right now, you know, we're expecting at least the BOM content to be increasing in the next platform. Yep. Great to hear. Lastly, Yifan, turning it back to you. There was mention made of the $45 million fab equipment loan associated with the expansion that's been well known there. The question is just given how high the cash balance is, why finance the equipment through that loan rather than just cash on hand? Sure. I mean, yeah, we do have a good cash balance right now. You know, this fixed-term loan, like five years in the loan, becomes available to us. I mean, the rate is pretty attractive, especially compared to the inflation rate now. Yeah, I would like to strengthen our balance sheet. Yeah, we do need some cash to support our continued growth and CapEx expansion. Yeah, that's how we decided to draw down the $45 million equipment loan. Is that a mid-single digit rate or is that more low single digit rate? It has the low single digits. Yep. That's attractive. Okay. Thanks, guys. Really appreciate the help. Okay. Thank you. Thanks. Thank you, Craig. The next question today comes from Jeremy Kwan from Stifel. Jeremy, please go ahead. Your line is now open. Yes, thank you. Let me add my congratulations on the $200 million quarterly milestone. Just wanted to follow up a little bit on the early signs of softness that you're seeing. I understand it's, you know, coming from consumer and maybe, you know, both the consumer portion of PC and also the consumer appliance segment. Can you elaborate a little bit more in terms of, you know, what signs that you're receiving? Is it, you know, are there kind of order cancellations or changes in backlog, you know, customer behavior? Can you just give us a little bit better insight there, please? Sure. You know, Yifan can comment on the overall backlog, but in terms of the PC customers, you know, we are seeing drop in demand for the consumer portion. You know, we're not 100% commercial. You know, we still serve the consumer segment of the market. It's just that we, you know, we're much heavier in the commercial side. So we do see some impact there from demand softening there. Well, that just means we just serve the commercial area more. So that, you know, it is coinciding with what we're hearing kinda in market reports also that, well, you know, the Chromebooks already started to drop even the past couple of quarters. Now kind of seeing the standard consumer laptop demand also starting to drop a little bit. That just, it's just continuing that trend. Okay. Got it. In the backlog, you know, Jeremy, right now, the backlog is still very strong, I mean, steady, strong, and then much higher than what we can ship, you know. I guess this is reflected in our customer base changes in the past few years. You know, we are having a lot more, you know, tier one OEM customers and ODM customers. We are forming strategic partnerships with those tier one customers. You know, those customer deposits can indicate the mix changes in the customer base. You know, while we're down to the downtime coming up and then, you know, those deposits, you know, would have another way to you know, mitigate our downside risk. Great. Thank you for that. Maybe just, you know, going back to the Shanghai facility challenges there. Can you remind us again what% of your revenues is handled by this facility? You know, I understand there's, you know, you've got some more standard equipment located in Chongqing, and then Shanghai handles most of the proprietary packaging and testing. You know, just to get a sense of what that is right now and what the utilization rate maybe of this facility was prior to the lockdown. Sure. I mean, Shanghai backend, yeah, handles a good portion of our overall backend capacity. I mean, I will say, more around half of the overall assembly and test, you know, over there. In the past, yes, some packages were fully utilized, and some we still had some additional capacity. That's why we said, you know, with more wafers accumulated on hand and, you know, in the second half of the year, we are expecting to catch up on a good portion of the production that we lost in April, partially in May. You know, that's the overall situation. I guess my question was, you know, if it was fully utilized prior to the lockdown, you know, have you been able to kind of add incremental capacity to, you know, to do the catch-up? No, I mean, before the lockdown, you know, some packages were fully utilized and some were not. Yeah, also during the lockdown time, we rearranged more to the subcontractors and you know, to utilize their production capacity. There are some redirecting, you know, shuffling around. Yes, we are doing the operation planning and management. Got it. Great. Maybe if we could turn to the, I guess, on the Chongqing side of things. You know, if you give us a sense of what maybe the potential lockdown risk is there. You know, does your designation as an essential business by Shanghai government help you get something similar in Chongqing? Right now, Chongqing is not locked down. I mean, this in China, just city by city right now. Shanghai is in lockdown situation, not in Chongqing. Okay. I guess last question for now is on the inventory side, you know, it sounds like you've built some nice supply of preassembly wafers, but then you saw most of your increase is due to the raw materials. Is that considered raw materials for you? Or is, you know, the preassembly wafers, is that considered kind of more work in process? Just wondering where kind of the buildup is and what are kind of the main drivers, if it is, you know, substrate costs, things like that, and what kind of things you're seeing on the cost side from a inflationary pressure standpoint. Thanks. Okay. Sure, sure. The increase in our inventory, you know, primarily in raw materials and, you know, in my comments and then was mainly referring to our quarter end, March quarter end balance increase compared to December quarter end. You know, during the March quarter, we intentionally increased some raw materials inventory. Yes, in anticipation of the, you know, the global supply chain challenges. The wafer, you know, the stockpile up and, you know, Mike was referring to the April timeframe. You know, when our Shanghai assembly house was shut down, but our Oregon fab was continuing to produce, and so did other foundries and our CQ JV. I mean, that's why, you know, in the month of April, we had some additional wafers and, you know, piled up. That's where we say we expect in, you know, the second half of the year, we can catch up on some of the productions lost at our Shanghai factory in April and partially in May. Got it. That's very helpful. Thank you. Sorry if I could just ask one more question on the Chongqing side of things. Can you give us an update in terms of their capacity expansion plans? Have they been able to receive and install equipment and get things ramped up? How much incremental capacity do you expect from them over the course of this year? Thank you. Yeah. As you know, CQ JV, they raised $80 million in January. And then they already placed an order for the capacity expansion. The lead time for the equipment is quite a bit long nowadays. We do not expect they have additional capacity come online this year. Got it. The growth that you're expecting for, you know, the remaining of the calendar year, is it dependent upon Oregon ramp up then? That's where you're seeing all the incremental gains? Incremental gain would come from yes in Oregon's capacity expansion and ramp up, as well as foundry and supply. You know, we have been working with foundry partners since last year, so we should be able to see some additional capacity, supply you know during the course of this year, remaining of the calendar year. Got it. Great. Thank you very much. All right. Thank you. Thank you, Jeremy. The next question today is a follow-up question from David Williams of Benchmark. Please go ahead. Your line is now open. Hey, thanks again. Just wanted to maybe touch on this quarter and the revenue upside. Was that driven more by volume or pricing or maybe even more so from mix shift? Just any color around what drove the upside would be helpful. Sure. You know, primarily in you know in the March quarter, we received additional wafer supplies from our foundries as well as JV. That's where we can produce them more and ship out more. Okay, great. Any thoughts on maybe what the unit volume growth would have been, perhaps, sequentially? I mean, mix definitely changed during the quarter. I mean, the unit, if you talk about the, you know, the total unit may not be higher than the December quarter, but the mix definitely in favor of, you know, higher ASP type of products. For example, Power IC products continue to have a strong growth in the March quarter. I mean, in our product mix and, you know, some products and, you know, ASP at $0.01 or $0.02 and then, you know, the some at the in the over $1. I mean, that's a kind of a pretty wide spectrum in terms of selling price of our products. I mean, the product mix during the quarter can impact on the revenue mix quite a bit. Okay. Maybe just the last one for me real quick is any commentary around the design win activity or any traction you're seeing, how the design win's been and anything in particular that you're seeing either slowing down or picking up pace? Yes. Design wins I think are still steady. You know, we continue to lock in our business both for this year as well as for next year. You know, we've been focusing not only on our core markets, PC, you know, smartphone and home appliances. We talk. I know we talk about that a lot, but we're also working on and building up some of our newer markets. We talked about power tools this time as an emerging area, you know, as we continue to diversify the breadth of our products and the applications, we're also getting closer to the big customers or the tier one customers. It's in good shape. Thanks again. I appreciate it. Thank you, David. There are no additional questions waiting at this time, so I'd like to pass the conference back over to the management team for closing remarks. This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking with you again next quarter. Thank you. This concludes. Thank you. Today's conference call. Thank you for your participation. You may now disconnect your line.