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 2023 conference call. At this time, all participants are in listen-only mode. There will be prepared remarks followed by a question-and-answer session, at which time, if you wish to ask a question, please press star one and one on your telephone and wait for your name to be announced. 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 will now 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 this 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 midterm demand for this offering that should result in an incremental dollar growth unprecedented as 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 3.5% year-over-year growth, with a net profit of approximately $55 million, representing a net margin of about 15%. At 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 ± 5%. This midpoint represents about 10% Q4 versus Q4 year-over-year growth and 18% within-the-year growth. 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 2024 over Q3 2023 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 transimpedance amplifiers and drivers, and with SiPho for integrated optical components such as modulators and photodiodes. Silicon Photonics continues to see rapid adoption at the 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 being a new growth market where Tower will have over 3x revenue growth 2024 over 2023, with a forecasted annualized Q4 2024 run rate of over $150 million. As of this quarter, we've begun the production ramp of 1.6 Tb products for several lead customers. 800G products are built with eight parallel lanes of 100 Gbps, while 1.6T products are built with eight parallel lanes, each operating at 200 Gbps on our latest technology that doubles the operating speed of each component. While the component count remains similar for 800 Gb ps eight-lane versus 1.6T eight-lane, the needed performance requires continuous innovation and process technology and integration schemes to support the demanding modulation bandwidth. We believe today Tower is the number one foundry by volume in Silicon Photonics, and to our knowledge, also the first in production with 1.6T Silicon Photonics-based products. Looking forward, we continue a strong R&D partnership with lead customers towards introducing technology for 3.2 Tb that will rely again on technical innovations, enabling a doubling of speeds to 400 Gbps per lane. Our Silicon Germanium business is growing not only due to the factors mentioned above that are growing the optical transceiver market, as both Silicon Germanium and Silicon Photonics components are built into an advanced optical transceiver, 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, to enable copper cables to be used in many short-reach applications for both performance and cost benefits as compared to optical cables. Based on the strong demand we are seeing from both our Silicon Germanium and SiPho customers, we are qualifying both families of platforms serving optical transceivers in our San Antonio and Migdal Haemek 200 mm factories, where we are optimizing existing fab space and adding substantial additional clean room for further growth. We have also released 300 mm PDKs using a 65 nm 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 mm capacity in Agrate as our demand outpaces RF-SOI capacity in our Uozu 300 mm 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, TPS65 RS, now available directly from Agrate as well, with customer-acknowledged industry-best Ron x Coff and power handling for next-generation RF mobile products. Our newly announced Triple Play RF-SOI platform for Wi-Fi front-end modules that integrates the power amplifier, low-noise amplifier, and switch on a single die, which we press release with Broadcom, is in mass production and 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 seek strong growth opportunities in our 300 mm 65 nm BCD platform, which, as we have discussed in prior quarters, 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 now are qualifying our Albuquerque facility to enable further growth. We anticipate beginning production in Albuquerque in 2025, and given the large capacity available, anticipate 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 year's beginning, we expected second-half growth, in particular from customers serving machine vision. This has not happened, but rather the imaging business remained stable through 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 mm 65 nm CIS platforms. Among these wins is a stacked BSI global shutter ultra-high resolution sensor, 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 on silicon displays expected to tape out our products next year on our new 5-volt with extensions to 8-volt transistors, lean 300 mm platform with state-of-the-art low-leakage currents and high-density capacitors. Our fab utilization rates for the third quarter were Fab 1, as previously announced, will be operationally consolidating to Fab 2 and was at about 85% entering into last-time buys. Fab 2, 8 in, as well as Fab 9, 8 in, were about 60% each, with concurrent capacity repurposing and clean room buildout to meet the continually growing forecasted demand for Silicon Germanium and Silicon Photonics products. Fab 3, 8 in was at 65%, currently at full Silicon Germanium/Silicon Photonics capacity, with real-time activities reducing certain bottlenecks, targeting a 20% increase in the fab utilization. Fab 5, 8 in was at about 60%. Fab 7, 12 in 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 sheets. 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 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 mid-range 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 in relation to Japan operations reorganization. Net profit was $55 million, reflecting 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 plans, as of the end of September 2024, our balance sheet assets totaled $3.1 billion as compared to $2.9 billion at the end of 2023, primarily comprised of $1.3 billion fixed assets net of depreciation, predominantly comprised of fab equipment, and $1.7 billion of current assets. Current assets ratio, reflecting the multiple by which current assets are larger than short-term liabilities, is very strong at about 6x, 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 in fab in Agrate, Italy, following the previously announced ST Micro 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 are 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 fab 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 a $350 million investment plan to expand SiPho and SiGe capacity and capabilities for the qualification and ramp-up of these technologies in our 200 mm and 300 mm fabs to serve 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 SiPho and SiGe CapEx investments, are within and steps towards achieving our business strategy and financial model as previously presented by the company in November one year ago. 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 facilities, which could result in $560 million annual operating profits and $500 million annual net profits. Now, I'd like to turn the call back to the operator. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder to ask a question, please press star one and one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A queue. This will take a few moments. If you wish to cancel your request, please press star one and one again, and once again, it's star one and one if you wish to ask a question. Thank you. We are now going to proceed with our first question. The questions come from the line of Mehdi Hosseini from Susquehanna International Group. Please ask your question. Yes, sir. Thanks for taking my question. Two follow-ups here. I want to go to slide number six and better understand revenue and gross profit opportunities, especially with 400 Gbps and plus. 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 mix? On slide number six, you have the wafer mix between less than 400 Gb ps and more than 400 Gbps. I'm under the assumption that for applications above 400 Gbps, wafer ASP is higher. And therefore, that same slide, but presented with a revenue mix, would have a significantly higher mix of a higher than 400 Gbps. Is that a fair 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 SiGe platforms itself that we are using for 800G or a more advanced platform, a higher Ft and F max than we would be doing at a 400G or a 100G. For cables, it also ties to an 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 cables that we're selling are at 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. Thanks for clarifying that. And then just looking at the overall silicon photonics market, in the past, you have highlighted $80 million revenue opportunity in 2024 and doubling to $160 million in 2025. It seems like you are tracking above those targets. Can you give us an update here? Yeah. I don't mean this tongue-in-cheek, but I think I did. Yes, the revenue is expected to hit about $100 million this year. So certainly, sorry, as I stated at the beginning, short-term, midterm, we're seeing ever-increasing customer demand and for the midterm, ever-increasing customer forecast. So we'll be leaving the year providing we go according to forecast in our ship plan with about $150 million silicon photonics run rate already leaving 2024. Without giving anything about the 2025 guidance or targets, one could expect that if I had, I think I said more than doubling, but that from $80 to above $160, if already Q4 is at a $150 million run rate, then I think it's very safe to say that we're tracking above the forecast we gave a quarter ago. Great. Thank you. Very good question, though. Thank you. We are now going to proceed with our next question. The questions come from the line of Cody Acree from The Benchmark Company. Please ask your question. Yeah. Thanks for taking my questions. And congrats, guys, on the progress. Thank you. Extremely impressive guidance. Glad to see it. Maybe, Oren, can we just get one clarification? You said the $350 million would start when in installment payments and end when? Did you say 2026 or 2028? Oh, end of 2026. It will be spread. You may assume pretty linearly between now and the end of 2026. All right. Great. Thanks. I 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? Oh, that's included in the model. Like I said in my closing remark, this is within the model and towards achieving the model. We needed to do that investment. By the way, also the CapEx is included in that model, so there is no additional depreciation because of that. These are steps that we needed to do in order to achieve this long-term $2.66 billion. So it's in the numbers. Okay. Great. Thank you. I think, Cody, the big point I want to say 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 all was foreseen in the model, but it was aligned to long-term roadmap partnership, and that in going forward on it shows that what we had expected to happen is truly indeed 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 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? Within the area of the RF-SOI, at present, I don't think there's a single take-or-pay agreement. There are very, very strong relationships and track records that we see customers having performed to. Is there a take-or-pay involved? No. But I think in many areas, take-or-pays are not a good thing to have. In bad times, trying to hold somebody to buy things that they don't need is not good. But our assurance is really off of seeing how, I mean, you cover many people within the space. The specific front-end module market at this moment is not overly strong. But the fact that we're seeing very big growth, I believe in Q3 over Q3, we had very good double-digit 300 mm RF-SOI for advanced platforms. Probably if we look at the fourth quarter forecast, first the fourth quarter a year ago for the 300 mm platforms, it'll be well above the 50% year-over-year growth. So the point being that customers that we're working with themselves are gaining market share in a market that doesn't have the type of growth that we're seeing. So as long as we're tied with people on multi-generation roadmap and serve them well, we're quite convinced that they stay with us. In the short to midterm, very difficult to qualify someone else in form, fit, and function for a front-end module. In the long term, the assurance is simply if we perform well and they perform well in the short to midterm, then we stay together in the long term. But the biggest thing is having PDKs that really match the output performance so customers are more or less guaranteed first-time success and to work very closely to go through any issues real-time during the initial design proto cycle so that they come to market quick and that we both benefit from that. Hopefully, that answers the question, Cody. But if you're asking if we have long-term take-or-pay agreements, that we do not. Okay. That's very h elpful. Thank you, Russell. 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 allow for 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 mask level would change how the copper cables are going to be deployed. Is that the way to think about it? They'll change the output parameters. Any other color there, Russell? No, I think that's a pretty good color, actually. But thank you. All right. Thank you. We are now going to proceed with our next question. The questions come from the line of Richard Shannon from Craig-Hallum Capital Group. Please ask your question. Thanks, Russell, Oren, for taking my questions here. Great results. Great to see the RF infrastructure doing so well here. I guess my first question is on the silicon germanium side here, talking about 1.6T. I guess wondering if that's going to be a material contributor, noticeable contributor revenues by the end of next year. Is that timing? Is Is that a timing that you expect to be material, or is it still growing from a small base at that point, do you think? I honestly think it will be material. If you look at analyst reports for 2024 from two years ago, they all really had 100G being 80% of the market, where probably 800G is 85%-90% of the market for this year. So I think the fact that we have good working samples, of course, the end data center maker, the hyperscaler has to be willing to implement. But I do think the roadmap on speed is very, very fast now. So yeah, I believe it'll be a material amount of revenue in the second half of next year and maybe starting in the second quarter. Okay. Perfect. That's very helpful, Russell. Thanks for that. Maybe a question for Oren on gross margins here. Just looking at the fall-through quarter on quarter, I know it's probably not great to look at it just on that short-term basis here, but last quarter, we saw a very nice fall-through margin. This quarter was a bit less here, 30%. I'm calculating about 31% or so. Last quarter, you said the benefit was coming from silicon photonics, yet it seems like silicon photonics is doing very well. So I can't resolve those two. They seem to contradict each other. Can you help us understand why the big difference here? Yeah. I think Russell related to that in his remarks. He mentioned that the CIS, the image sensor, was not like we expected. And the CIS, as you know, is also high margin like the SiPho. So the increase in SiPho, which is very nice, impact on margin in Q3 was somehow offset by the image sensors. Okay. Thanks for that. Okay. Sorry. I didn't mean to interrupt you, Oren. No, no. I finished. Sorry. 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 won'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 business is poised to inflect here. And I guess we can all project what RF-SOI can do, or excuse me, and RF Mobile, but seems like a pretty good growth year here. How would you help us think about these dynamics as we put our models together? So I certainly believe that the infrastructure markets served by the SiGe and the SiPho will grow and grow very strong. Oren mentioned that the SiPho realizes very high margins. It actually comes in substantially higher than the imaging, which is also extremely high margin. So I think as far as the contributions of the SiPho growth, it'll be quite substantial. And SiGe will continue to grow throughout the year as well from everything that we see and customers are forecasting. On the imaging, we had mentioned earlier that Q1 was a low for us. Q2 is a substantial increase over Q1. And we stayed 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 quarter, which did not happen. I'm not going to give a target or a guidance in the third quarter for 2025. We'll certainly be giving good color on that when we release the fourth quarter. But that being said, for our plans right now, we're not putting into any of our plans the believed forecasted customer demand increases for the imaging, but our plans would have imaging staying at the same levels as they are now as we hit in Q2. And within our own plans, if imaging comes up at a 25% or a 50% increase, that would be fantastic. But it's not what we're counting on. On the RF-SOI, the market itself is stated as not overly strong. Our customers are gaining market share. We would expect that there will be growth in RF-SOI. There will certainly be growth in 300 mm, first 300 mm. 200 mm that we're doing, I'm not sure that that will be growing. And I don't know how much the overall market will grow next year. I expect that we'll have growth, but some of it really depends on the mobile market itself, what's happening in handsets. And I don't think that two of the big players in that market that gave releases recently were not overly optimistic about 2025. So the RF Mobile market, I think, will outperform the market because serving customers that are gaining market share in addition to other customers. And even with some of existing customers, we're gaining additional SKUs and for new capabilities. So I'm not sure how much that will grow. I don't know how much color I can give there. And that's one reason that before we give a target for the next year, we really like to be as closer to the year as possible. And when we release Q4, we'll be within the year. So I think we'll be able to give good flavor. But from what lead suppliers to front-end module 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 a place that we really do always have opportunity to grow. And it's really because whether the market itself is growing or not, we're starting from not a very high market share position. And the 300 mm platforms are strong platforms, growing, getting qualified where we have now free capacity in Albuquerque. So we'd expect to see growth in that in 2025. To what extent? I'm not sure. I don't want to say that at this point, but certainly, it's a good business for us where we entered into additional markets that we weren't serving in the past, and I think the easiest way to grow share of market is by increasing your served market, which we've certainly done within the BCD, 65 nm BCD, and potentially going beyond that. I'm not sure if that answered your question well, but it's as much as I think I can say at this point. That is helpful, Russell. We understand it's early, but your best perspective is always helpful. So thanks for that. My final question, I'll jump out of line here, is just looking at the balance sheet and noting a very strong cash position. And obviously, you've been growing cash and expect to, by all measures here, going forward here. 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, silicon photonics, power, etc., to realize that? Thanks for that. I'll start with the second part of your question, then Oren could talk to the first because I think he ended his portion talking about a lot of cash needs in the company to fulfill this circa $2.7 billion plan, but as far as M&As, we're always truly actively engaged in vetting multiple M&As. Now, there are a lot of speculations about us going into a foreign country and building a big factory, etc., etc. We're engaged all the time at looking at opportunities. Some opportunities appear at first swipe to be extremely positive, but always, I think there's an honest risk-reward look that has to be done. And as soon as we see things that make sense and are truly accretive to the company, meaning very few capacity acquisitions that you would do, certainly no greenfield builds that a person would do are ever cash accretive for the first years. And it takes multiple years to get to net profit positive within any greenfield. So the conditions of doing one of a greenfield activity, which can make sense in different geographies, has to have certain conditions with either the government or with certain customers or with a partner that would not have our shareholders suffer from the cash loss of the first seven, eight years. And that takes a lot of consideration and activities. That's why for such large capacity increases, it's always smarter to take over a going concern than it is to do a greenfield on a pure financial basis. As far as looking at technology acquisitions, again, we're very engaged in those. And to say what we're engaged in right now maybe sets false expectations and to release anything before one is required to release, which means before it becomes material, it then can come off and look like one was ineffective at closing on a deal, which is not the case. It's very good to always be open and look at deals. And I would say there's rarely a time when there aren't at least four to eight activities that we're pursuing and engaged in. But before closing them, they really have to be something that is accretive to shareholders and is accretive to our roadmap and hence to our customers or would contain customers that our other products can help grow on top of what you're buying. But that's a long answer, and I apologize that it's so long. It's just not an easy digital yes or no. It's a lot of qualifications in it. But we are actively looking. We have been actively looking. We were very close to maybe doing something within the past month that ultimately we could not come to agreements that would be viable for shareholders and hence for the company. And I think that no matter how excited one is about something, you must always be grounded in the numbers. And if something doesn't pencil, it doesn't pencil. Appreciate all that detail, Russell, as always. Congratulations on the great results. I will jump out of line. Thank you. Thank you. We are now going to proceed with our next question. The questions come from the line of Nick Doyle from Needham. Please ask a question. Hi guys. Thanks for taking my questions. Also a question on ACCs. 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. And I think the answer you gave to Cody earlier was related to this rack-to-rack or horizontal opportunity. But I'm assuming that the strong demand and the CapEx decisions can go beyond would mean that this demand would go beyond one application at one customer. So we've heard applications using NIC-to-TOR or vertical use case and also a newer intra-rack use case at higher speeds. So can you give any color on what the other applications could be? Thanks. To begin with, the bulk of our silicon germanium is not for ACC, right? It's for the TIAs and drivers. So that's the bulk. ACC is incremental revenue. Now, the lead customers that we have for the optical transceivers itself are also those that are doing the active copper cables. Within that incremental revenue that they have demand for the ACC, I cannot exactly say what application they're going after. Within rack, within the pizza box itself, rack-to-rack, many cases, rack-to-rack active copper cable is not sufficient. But I don't think I'm in a position to give real good color as to what our lead customers that are using SiGe at very high volumes for the transceivers and are also now buying SiGe for the ACC, what is their entire gamut of applications that they're serving with the ACC? I couldn't really state that with tremendous granularity. Okay. Still helpful. Thank you for that color, Russell, and then the next one, just a basic question on utilization. Fab 3 is at 65%, I believe you mentioned, and that is, I guess, full SiGe and SiPho capacity with a 20% target increase. So just an explanation on how that is going to happen. I guess you're taking out certain capacity and refilling it with this SiGe and SiPho demand, and that's contemplated in the $350 million. And that's how you'll increase this utilization? Very good question. There's bottlenecks that we have. There were other mixes that were done in that factory previously. There's bottlenecks specific from having moved from silicon germanium to doing a certain amount of silicon photonics. And by adding and qualifying certain processing chambers, you're relieving the bottlenecks and able then to move up to use the full photo capacity. We always present utilization against max photo capacity of the factory. Processing tools can gate for a certain flow of the photo capacity. What you have in any fab is processing tools that are unique to certain flows that are capped at whatever the volume is plus some certain percent. Otherwise, you have tools that are utilized and using fab space ineffectively. In this case, as we've moved to having such a demand for the SiGe and the SiPho, we're doing very little in that factory other than SiGe and SiPho to maximize that output. But we've come into bottlenecks on certain steps, which you could maybe say certain edge steps, etc., or maybe certain deposition steps, so we've added chambers or adding chambers or repurposing some chambers in order to be specific to the SiGe and SiPho and hence relieving the bottlenecks to get closer to the full photo capacity, which over time will get to the full photo capacity, which in our model is an 85% operation, so 85% of the full photo allows a fab to still be moving at good cycle times, and that's what our target is. We also are using some capabilities in other factories, and that's part of the $350 million to enable further usage of any given factory. So you have the ability to be transferring to start doing a deposition early on in the line in one factory. And if that deposition is a deposition that's constrained elsewhere, to free up the constraint in the other factory by doing the early deposition in one. So that's part of the $350 million as well, is relieving bottlenecks through optimizing the fleet. Sounds like a lot of good decisions. Thanks. Thank you. We are now going to proceed with our next question. The questions come from the line of Lisa Thompson from Zacks Small-Cap Research. Please ask your question. Hi. I want to welcome you back to Revenue Growth. Thank you. Thank you. I have one financial question, Oren. This year, we were supposedly thinking that your tax rate was going to be 14% for the year, but unless you pay a really big chunk in Q4, that's not going to happen. What do we think about Q4 taxes? And also, what's your thinking about next year's tax rate given all your varied activity in different countries? Hi. Yeah. No, there is no expectation to a big chunk of payment for tax. I mean, our tax model first, our tax regime is that the parent company in Israel, that's a 7.5% tax because we are in what's called in Israel a preferred zone because of the location of the factory, so this is a preferred tax rate of only 7.5%. In the U.S., it's 21%. In Japan, it's 30%. In Italy, it's 24%. But I wouldn't expect, because of those headwinds that Russell even spoke about in previous calls, headwinds that we will start to have when we will start to operate Agrate, so we expect not to have profits in Agrate in the coming quarter for sure and in the coming year also, so we will not pay those 24%. And so we are left with the 7.5% in the parent company, 21% in the U.S., and 30% in Japan. As you can see in our financials, we're very efficient, I believe, modestly, that our average tax rate is usually 10% between 8% to 14%, depends on the quarter, depends on which region is the income. So we manage it and succeed to have it at around 10% usually. For this year, there was a one-time in Q1 that we had a tax benefit from a settlement that we reached with respect to one audit that we had, which was very successful results. So we had a one-time benefit in Q1 2024, which was a one-time. Q2 and Q3 tax rates are already, as you see, reasonable. For example, this quarter was about 12%. The previous quarter was about 10%. So that's exactly what I said. So bottom line, if you just exclude Q1, which has the one-time benefit, we are at the 10% to 12%. And I think it's good to model that 10%, 12%, 14% for the coming year. Very reasonable. All right. Great. That helps a lot. Thank you. That's the only question. 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 everyone for participating. I thank all of the analysts for really a very good group of questions. To conclude today's call, 2024 has been and promises to end as a strong performance year for the company, both in our financials and in extensive strategic customer activities securing the future. We are confident to continue to execute on the exciting growth opportunities before us. Our unique capabilities in silicon photonics and silicon germanium, paired with deep first-hand customer collaborations, 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 strong foundation for future expansion, especially in advanced RF and power management segments. A strong balance sheet puts us in a position to act quickly on a variety of creative 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. We thank our employees worldwide for their continual capability-based and passionate efforts and our customers worldwide for their faith in us and placing their success in a partnership with us. Thank you all very much. On January 14th and 15th, 2025, we'll participate at the 27th Annual Needham Growth Conference in New York. It'll be our pleasure to meet you at this conference. Again, thank you for your support and for joining us today. That does conclude our conference for today. Thank you for participating. You may now all disconnect. Thank you.