Hello, and welcome to the Vishay Intertechnology Q4 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. I would now like to turn the call over to Mr. Peter Henrici, Investor Relations. You may begin. Thank you, Tawanda. Good morning and welcome to Vishay Intertechnology's Q4 and year 2024 Earnings Conference Call. Joel Smejkal, our President and Chief Executive Officer, and Dave McConnell, our Chief Financial Officer, will join me today. This morning, we reported results for our Q4 and year 2024. A copy of our earnings release is available in the Investor Relations section of our website at ir.vishay.com. This call is broadcast live over the web and can be accessed through our website. In addition, today's call is being recorded and will be available via replay on our website. We will be referring to a slide presentation during the call, which we also posted at ir.vishay.com. You should be aware that in today's conference call, we will make forward-looking statements discussing future events and performance. These statements are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. For discussion of factors that could cause results to differ, please see today's press release and Vishay's Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. We are including information on various GAAP and non-GAAP measures in our press release and on this conference call. We have included a full GAAP and non-GAAP reconciliation in our press release and in the presentation posted on ir.vishay.com, which we believe you will find useful when comparing our GAAP and non-GAAP results. We use non- GAAP measures because we believe they provide useful information about the operating performance of our businesses and should be considered by investors in conjunction with GAAP measures. Now, I turn the call over to President and Chief Executive Officer, Joel Smejkal. Thank you, Peter. Good morning, everyone. Thank you for joining our Q4 2024 Conference Call. I'll start my remarks with a review of our revenue for the Q4 by end market, channel, and region. Then Dave will take you through a review of the Q4 financial results and our guidance for the Q1 of 2025. After that, I'll give you a summary of our actions during 2024 to implement Vishay 3.0 and the key initiatives we plan to focus on in 2025 as we continue to execute our five-year strategic plan. And then after, we'll be happy to answer any of your questions. Revenue for the Q4 was down slightly versus Q3 at $714.7 million for a full-year revenue of $2.9 billion that was below 2023. As we've talked about all year, the industry has endured a prolonged period of inventory digestion by customers worldwide, compounded by weak macroeconomic conditions in Europe, but after nine straight quarters of inventory consumption, the longest inventory correction cycle we've seen, inventory levels at the end customers and in the distribution channel appear to be normalizing, particularly for semiconductors serving automotive and industrial end markets in Asia and the Americas. As a result, book-to-bill at quarter end was 1.01 compared to 0.88 in Q3, with most of the improvement coming from semiconductors, which reported a book-to-bill of near 1 versus 0.79 in Q3, and a passive book-to-bill that moved into positive territory at 1.03 versus 0.97 last quarter. We're watching book-to-bill data closely in Q1, especially now coming out of the Chinese New Year holiday, to see how this trend continues. Bookings continue to improve, particularly for products related to smart grid infrastructure projects, AI server power, and military defense. Even though revenue was more or less in a holding pattern most of the year, at Vishay, we have not been standing still. We have been pressing ahead and building momentum. The organization has a shared sense of purpose and commitment to make Vishay 3.0 a success, preparing to take full advantage of the megatrends of e-mobility and sustainability. Setting the foundation to transform everyone's thinking to be business-minded is positioning us to accelerate revenue, improving profitability, and enhancing returns. These are top priorities across Vishay. As employees across the globe have adopted a customer-first and a business-minded approach in everything we do, a cultural shift has been taking hold within the company. There's a different vibe now as employees collaborate, exchange ideas, cooperate, and make decisions to improve profitability, and everyone is looking ahead to seeing the initiatives they are working on this year pay off in the next industry upturn. I want to express my gratitude to the Vishay employees for their willingness to embrace continued change this year and for working together to achieve our five-year strategic plan and financial goals. Let's now take a closer look at the Q4 revenue relative to the Q3, starting with the review of revenue by end markets on slide three. Automotive revenue decreased 6% versus the Q3. Most customers pulled below their schedule agreements, which was also at lower rates than the Q3. While in Europe, production volume decreased along with lower forecasts later in the quarter. At year-end, due to the holidays, some automotive plant shutdowns pushed their schedule demand out into the first half of 2025. New programs, however, using AI chipsets for driver assist and autonomous driving programs, were started with customers during the quarter. In the Americas, automotive customers pulled at normal rates through the first 11 weeks of the quarter on strong demand. In the last two weeks of the quarter, pulls were very light. In China automotive, demand came from EV production and growing electronic content. Global and China automotive tier one suppliers continued to buy and assemble using Vishay products for China automotive OEMs. Each product division works to design in and sell technology-differentiated products to China automotive. We completed the contract negotiations with large OEMs during the quarter, which resulted in a typical ASP decline in the low to mid-single digits, along with volume and share gains. Renewed schedule agreements show improving demand for the first half of 2025, but still limited visibility in the second half of the year. Design activity around EVs continued during the Q4, even though there is an acceleration to design towards hybrid powertrains. Design activity is focused on high-performance computing, safety, autonomous driving, infotainment, smart cockpit applications, and in-cabin monitoring. Revenue from industrial end markets decreased $5 million or 2% for the quarter. Order intake for smart grid infrastructure projects continues to be quite positive during the quarter. We won another China program during the quarter, and order intake was also strong for grid management products, power supplies, power tools, and industrial inverters. Customers in the Americas and Asia continue to consume semiconductor inventory throughout the quarter, improving the balance between inventories and lead times. Customers in Europe, on the other hand, continue to contend with weak business conditions impaired by seasonality and high component inventory, which is planned for Q1 2025 consumption. New design activity in industrial was focused on automation, including connectivity, robots, agriculture, remote monitoring, and HVDC for smart grid infrastructure, as well as renewables and power supplies. In aerospace defense, with order flows similar to prior quarters this year, revenue was slightly below the Q3. Distributors continue to place orders at a booking rate above one to support US military demand as we increased our backlog of orders, also related to low Earth orbit satellite programs. In Europe, revenue was flattish for this segment on normal year-end seasonality, while commercial aerospace demand faces some supply chain challenges with mechanical products. Our Vishay products are in the queue once the mechanical supply chain issue is improved. We are a preferred supplier and continue designing work on new programs for all US Department of Defense OEMs. Some projects include munition replenishment, missile design programs, Hypersonic Ballistic Tracking Space Sensors, Next-Generation Interceptors, and commercial and military low Earth orbit satellites. We have multiple products supporting this design activity in the defense and space program. As a reminder, Vishay's passives have the broadest military established reliability certification. We sell to medical end markets, mostly in the Americas. This quarter, medical revenue was flat with the Q3, with strong demand for some customers based on forecast in 2025. We did have softer orders from one large customer for inductors, however. Design activity for patient monitoring, surgical assist robots, and glucose monitoring continues to create new business opportunities for Vishay to sell our entire portfolio of products. Implantable devices continues to offer us high dollar content opportunities. Revenue from the other market segments, including computing, consumer, and telecom end markets, was up 3% quarter-over-quarter, with strong order intake in Asia related to heightened demand for AI servers and server power projects. We are designing in and supplying a wide variety of products to AI, which supports the unique position of Vishay. These products are MOSFETs, polymer tantalum capacitors, resistors, voltage suppressors, diodes, and inductors. Also, for IC products, we're designing in eFuses, DrMOS, and power stage. This list further demonstrates the breadth of our portfolio, which populates a high percentage of components on a board in power application. AI at this point remains a quick turns business. We see unscheduled orders from CMs looking for quick delivery to support AI power management modules. Spot orders are running around 60% of total orders in Asia. Still low visibility. Design activity stayed focused on AI server power, power conversion, and power management of the AI chipsets, along with notebooks and designs aimed at companies who integrate AI chipsets into their programs. Turning to slide four, which displays revenue mix by channel, you can see that the distribution revenue declined versus the Q3, while OEM and EMS revenue increased slightly. This is an encouraging sign around consumption. Revenue from OEM and EMS customers grew for the first time since the Q4 of 2023. Automotive and industrial OEMs are normalizing inventory levels, and demand related to smart grid infrastructure projects was strong. EMS customers are starting to buy to direct demand, although regional EMS in Europe are still holding high inventory coupled with soft end customer demand. Most of the EMS in Europe did shut down in the last two weeks of the year. Sales to distribution declined 7% on fewer shipment days during the quarter versus Q3, and a prolonged weak demand in Europe's industrial end markets, particularly for renewables. Asia and the Americas distributors manage their year-end inventories and manage their financial P&L. Worldwide POS decreased 3%, once again pulled down by reducing POS in Europe. The holidays fell midweek in late December. Many distributors stopped accepting shipments after 11 weeks into the quarter. Our distribution inventory remained stable at 27 weeks. Let's go to slide five in terms of the geographical mix. Europe is the lagging region, softening revenues per share as a whole and declining 8% as macroeconomic conditions continue to weaken. Distributors are still working through inventory, and customers stopped accepting shipments after week 11 into the quarter. This weakness masked the growth in Europe related to smart grid infrastructure projects. Asia was a bright spot, with revenue benefiting from shipments to smart grid infrastructure programs and spot orders related to AI servers and some early signals for industrial. I'll now turn the call over to Dave, where he will review the financial results of Q4. Thank you, Joel, and good morning, everyone. Let's start our review of the Q4 results with the highlights on slide six. Q4 revenues were $715 million, including $3 million attributable to the legacy Newport products and within the range of our guidance. Revenues decreased 2.8% compared to the Q3, reflecting a 1.6% reduction in volume, a 0.6% reduction in ASPs, and a 0.6% negative foreign currency impact related mostly to the euro. By reportable business segment, the $21 million decrease in revenues was mainly attributable to a $16 million decrease in opto and a $7 million decrease in inductors. MOSFETs, diodes, and resistors had more modest decreases. These declines were partially offset by an $11 million increase in our capacitor segment. Compared to the Q4 last year, revenues were down 9%, reflecting a volume decrease net of Newport of 4.7% and a 4.6% reduction in ASPs. Book-to-bill for the quarter was 1.01, comprised of 0.99 for semis and 1.03 for passives. The first book-to-bill over one in nine quarters. Backlog was stable at 4.4 months, with semis and passives both flat versus Q3, semis at 3.9, passives at 4.9. Moving on to the next slide, presenting the income statement highlights. Gross profit was $142 million, resulting in a gross margin of 19.9% and included a negative impact from Newport of approximately 190 basis points. Compared to the Q3, gross margin was 60 basis points lower, primarily due to lower average selling prices, a slight increase in depreciation, and a higher negative impact from Newport. Depreciation expense was $52 million, slightly under our guidance for the quarter, up from $51 million in quarter three, and reflects the additional equipment that's come online. SG&A expenses were $132 million compared to $129 million for the Q3. This was higher than our guidance for the quarter and reflects higher R&D expenses incurred in Newport and some unanticipated legal and professional fees. During the quarter, we recorded a $66 million non-cash goodwill impairment charge to reflect the reduction in fair value of our MOSFETs reporting unit. The impairment charge does not affect our liquidity, cash flows from operating activities, or debt covenants. We remain committed to our MOSFET expansion plans. Inclusive of the impairment charge, GAAP operating margin was minus 7.9% compared to minus 2.5% in the Q3 and 9.9% in the Q4 of 2023. Adjusted operating margin decreased to 1.4% in line with the decrease in margins in gross margin and reflecting the increase in G&A expenses. Adjusted EBITDA for the quarter was $66 million for an adjusted EBITDA margin of 9.3%, down from 9.7% in the Q3. Our GAAP effective tax rate for the full year is not meaningful at the low levels of pre-tax loss. Due to the GAAP net loss for the quarter, the effective tax rate for the quarter was approximately minus 12.3%. Our normalized effective tax rate for the full year was approximately 36%, which yields a not meaningful quarterly effective tax rate. GAAP loss per share was $0.49 compared to a loss of $0.14 per share in quarter three and $0.37 per share in quarter four of 2023. Adjusted EPS was break-even per share compared to $0.08 per share in the Q3 and $0.37 per share in the Q4 of 2023. Proceeding to slide eight, for ease of reference. The presentation includes a table illustrating the revenue, gross margin, and book-to-bill ratios for each of our reportable business segments. Of note, for the Q4, the results of Newport continue to be reported substantially all in the MOSFETs business segment, weighing on that segment's gross margin approximately 900 basis points. Turning to slide nine in our cash conversion cycle metrics, our DSO was stable at 53 days. DPO was up to 34 days from 32. Inventory was up slightly due to the Birkelbach acquisition, up to $689 million, resulting in an inventory days outstanding of 109 days, up from 106 days in the Q3. Total cash conversion cycle for the Q4 is 128 days. Continuing to slide 10, you can see we generated $68 million in operating cash for the Q4. Total CapEx for the quarter was $145 million, including $103 million designated for capacity expansion projects and $320 million for the year, which fell below our guidance of between $360 million and $390 million as delivery of some equipment was delayed to quarter one. This brings the total CapEx for the period 2022 through 2024 to over $1 billion as we invest in Vishay 3.0. On a trailing 12-month basis, capital intensity was 10.9% compared to 9.7% for the same period last year. Due to the investments in capacity expansion projects, free cash flow for the quarter was a negative $76 million compared to negative $9 million in the Q3. For the full year, free cash flow was a negative $143 million. Stockholder returns for the Q4 amounted to $26.2 million, consisting of $13.6 million for our quarterly dividend and $12.6 million for share repurchases. We repurchased 0.7 million shares during the quarter at an average price of $18.02 per share. For 2024, we returned $105 million to stockholders. Cash and short-term investments decreased to $606 million at quarter end as we continue to deploy cash to fund our strategic plan. At the end of the quarter, we are in a net borrowing position in the US with $136 million outstanding on our revolver. As previously noted, we are required to fund cash dividends, share repurchases, and principal and interest payments using our cash on hand in the US We're using our US-based liquidity to fund the Newport expansion as well as other strategic investments. We have $467 million available on our revolver at the current EBITDA levels. We expect to continue to draw on our revolver to fund our US cash needs. Turning to slide 11 for our guidance, for the Q1 of 2025, revenues are expected to be $710 million, plus or minus $20 million. Gross margin is expected to be in the range of 19.0%, plus or minus 50 basis points. Newport is expected to continue to have an approximate drag of 175-200 basis points on the gross margin in the Q1. Depreciation expense is expected to be approximately $53 million for the Q1 and $214 million for the full year of 2025. SG&A expenses are expected to be $137 million, plus or minus $2 million for the quarter. The increase versus Q4 is primarily due to the accrual of assumed incentive compensation for 2025 versus a very low level of incentive comp in 2024. SG&A expenses for the full year are expected to be between $530 million and $560 million. In addition to the incentive compensation accruals, we're assuming continued investment in R&D, increasing spending, enhancing technology tools, and typical inflationary impacts. For 2025, we expect the normalized effective tax rate to be between 30% and 32%, and finally, our stockholder return policy calls for us to return at least 70% of our free cash to stockholders in the form of dividends and stock repurchases. For 2025, we once again expect negative free cash flow due to our capacity expansion plans. Despite negative free cash flow in 2024, we still returned over $100 million to stockholders. For 2025, we expect to maintain our dividend and opportunistically repurchase shares. I'll now turn the call back to Joel. All right. Thank you, Dave. Let's turn to slide 12. As a reminder, we are pulling eight growth levers to meet our commitment to scale capacity to our customers, to accelerate revenue growth, to position Vishay to be a much more reliable supplier, to drive greater returns through expansion of our product portfolio, and to expand our participation in our addressable markets. During 2024, we continued our focus on expanding capacity, both internally and externally, and on innovation. I'll recap our activities from Q4, starting with semiconductor capacity expansion projects. First, at Newport, we completed on schedule the transfers of three silicon MOSFET structures in Q4 and are on track to complete another six by the end of the Q1 of 2025. We started production of commercial and automotive technologies in late Q4 and are building inventory in anticipation of customer approvals later this year, after which we will start shipping. We expect to complete qualification of the automotive-grade components during Q1 and Q2. Thereafter, customers will schedule their site audits. During the Q4, we continued to receive delivery of silicon carbide equipment at Newport and remain on schedule to meet our plan of production in early 2026. At SK Keyf oundry, our partner in Korea, we released one automotive MOSFET and have ramped up wafers to be delivered in Q1. We also plan to release another automotive MOSFET in the Q1 and an additional five technologies in the Q2, one automotive, three commercial, and one IC. Through this partnership, we will be able to increase annualized capacity for MOSFETs by 12% in 2025 compared to 2024. But more importantly, we will be able to increase annualized capacity for our advanced split gate MOSFET by 25% to support new automotive and commercial opportunities. In Taiwan in Q4, we started to ramp volume of commercial diodes. Automotive qualifications are still pending. For 2024, as expected, we increased capacity of constrained lines of high runners between 25%-40% for an annualized increase, overall diode capacity of 4.7%. In Turin, Italy, we have received environmental approval from the government and now plan to ship commercially qualified diodes in Q2. We expect to complete qualification of the 1200-volt technology in Q2 and the 650-volt technology in Q3, both to be released to production in the second half of the year. Now for passives. At La Laguna, Mexico, during Q4, we worked directly with automotive customers on part number qualifications and stayed on track to qualify the facility for automotive inductors. We also began shipping Ametherm sensor products during the quarter. As a reminder, the Ametherm line includes products that support inrush current limiting and temperature sensing applications. For the year, we increased annual capacity for the large-size, low-volume inductors but decided to pull back on adding capacity on the small-size, high-volume to align with end-market demand in favor of using external capacity. At our facility in Juarez, Mexico, where we're shipping commercially qualified current sense resistors and other automotive products, we have increased annualized capacity by 18% in 2024 versus 2023. In addition to increasing our capacity of lower-margin commodity products and to expand our product portfolio to widen our market participation, we continued to qualify subcontractors this year. During the Q4, we completed qualifications for two new subcontractors for resistor technology. Across all subcontractors during the quarter, we added over 1,400 part numbers to Vishay, bringing the total for the year to greater than 10,400 part numbers. We exceeded our external capacity goals we set for the year on our path to achieving our 2028 financial targets. Specifically, against our goal of more than 4% of revenue from outsourced passives, we generated 5%. We set a goal of utilizing outsourced wafer fabs for 33% of semiconductor production. For the year, the rate of production for outsourced fabs on wafers was 34%. Finally, against our goal of utilizing outside assembly for back-end, the goal was 20% priced for semiconductor production, and our outsourced assembly represented 21% of revenue for 2024. As for innovation in our silicon carbide strategy, starting with our plans to commercialize the 1,200-volt planar technology, we released two products during the Q4 for a total of three products in 2024 and released another three products in January and plan to release another three products yet in the Q1. In addition, we are on schedule with our plan to commercialize the 1,700-volt planar MOSFETs in the Q2 of 2025 and the 650-volt planar MOSFETs in the Q3 of 2025. As a reminder, the silicon carbide MOSFET components support traction inverter projects and modules for onboard charging, which open more doors for us with automotive OEM. During the quarter, we completed the reliability testing of the Gen3 trench technology, and we are now working towards optimization. We currently have given samples to one automotive OEM, and mid-year, we will expand sample availability selectively with full market release of this product in the second half of the year. For silicon carbide diodes, we released an industry-first smallest package using our Gen3 diode 650-volt and 1,200-volt products. We are also on track to release the automotive version in Q1. We completed the reliability testing of our Gen4 650-volt automotive power pack to be released in Q1. We also will release the Gen4 1,200-volt automotive diode in Q2. Finally, at Electronica 2024, we showcased nine reference designs across automotive, industrial, and telecom applications, some of which demonstrated our silicon carbide capabilities, plus Vishay's ability to populate 80% of the components on a circuit board in power applications. Sample boards were available for customers to take for quick evaluation. We plan to release some of these reference designs into catalog distribution throughout 2025. For OEMs utilizing AI, we also displayed a multi-phase power board that incorporates Smart Power Stage ICs, vertical mount inductors, and polymer tantalum capacitors, which is another example of our solution selling strategy. To wrap up 2024, the extended inventory correction took longer than we expected. This did give us some breathing room to expand capacity and our product portfolio, so we're ready to scale with our customers as demand returns. We bolstered our engagements with OEMs, so we're ready to support their product roadmaps and with channel partners, so we're ready to gain share. Also, EV programs were pushed out during the quarter, which gives us more time to advance our silicon carbide strategy. We also expanded our product portfolio through the subcontractor strategy and made two technology acquisitions, Ametherm and Birkelbach. And we also acquired Newport, which advances our silicon carbide strategy and our campus concept. Now, as we enter into 2025, we see many promising indicators, including a positive book-to-bill for the first time in nine quarters, strong order intake for the smart grid infrastructure projects, and initial shipments for AI. All of our strategic levers will be in play as we continue to execute our five-year plan to position Vishay to take advantage of the megatrends of e-mobility and sustainability. We remain committed to our long-term plan of increasing Vishay's capacity between 2023 and 2028 to assure our customers of reliable volume as they scale. As a reminder, at our investor day in April 2024, we presented a plan of investing $2.6 billion in CapEx between 2023 and 2028. While we plan to continue to advance our capacity expansions, we have and will continue to modulate the spending in response to order flow and the timing of customer demand and qualifications. Also, the lead time of equipment and continued approval of subcontractor capacity are variables we include to throttle down our capacity spending. For 2025, we plan to spend between $300 to 350 million, at least 70% of which will be invested in capacity expansion projects for our high-growth product lines, including our wafer fab expansions. Under Vishay 3.0, we are business-minded. We are connected to the customers, and we gather and utilize market intelligence. This allows us, among other things, to make informed business decisions to throttle CapEx up or down if and when necessary. At the same time, we are taking a closer look at our global footprint, keeping in mind our customers' regional supply needs, and also to optimize our global footprint to a lower cost base and to enhance our returns. For example, in 2024, we started shifting towards campus structures that serve multiple product lines: La Laguna, Mexico, and the Newport facility in South Wales, U.K., plus adding subcontractors to produce commodities. Because of our strong execution of our strategic levers in 2024, we're well positioned in 2025 to support a market upturn. We have the capacity, and we have the print position. Since the beginning of 2023, we have landed an incremental 23% capacity to ensure we are a reliable supplier ready to scale and meet our customers' needs over time. We're ready to capture share gains as we continue to increase our SKU count on distributor shelves, and our inventory is well positioned to quickly grow POS. We're ready to support prior-year design wins as they turn into future start of production. By adding FAEs during 2024, we have engaged with more customers about their product and technology roadmaps. We also opened an e-mobility lab in Italy, which has strengthened our design position and reference design solution selling capabilities. We're creating design opportunities that increase our share of the customer bill of materials, and our capacity investments ensure we're ready to support their future demand. We are now better aligned with future growth segments like AI server power management, smart grid infrastructure projects, aerospace defense, industrial robotics, and hybrid for automotive and EV programs. We are doing the work to implement Vishay 3.0, and the customers see a different Vishay, a business-minded organization. Feedback is that Vishay is engaged early in the design pipelines, partnering with customers and preparing to scale in line with their roadmaps. We are actively in conversations with customers for more visibility to be able to support their market upturn in a timely way. I now turn the call back to the operator, Tawanda. Let's open the call to questions. Thank you. Ladies and gentlemen, as a reminder, to ask a question, please press star one one on your telephone and then wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Peter Peng with J.P. Morgan. Your line is open. Hey, guys. Good morning. Thanks for taking my question. I just want to zoom in on the AI server power side, and maybe if you can just level set us on how you're thinking about AI-related revenue this year and maybe how I think investors should think about your average content per system or per board. Maybe we'll start there. Thanks, Peter. AI in the Q4, we saw the initial volumes. It was very small in the Q4. A number of CMs are lining up to participate with the NVIDIA chipsets. We're working hard to try and understand the demand, the schedule, and as we talk to CMs, they say they're going to have some volume. It's going to be better than Q4, but they're not able to tell us the timing of the delivery of the NVIDIA chipset. So we're preparing on our own. We're being proactive to make sure that the MOSFETs are in position to be able to support, plus the other components that I talked about, polymer tantalum and others. So our design position is good. To put content on it, we've seen content in the $30-40 range per tray. We try and gather how many trays are in a rack. We've heard in the order of $600. But again, it's what is our share going to be? I'd like to provide you more, but we're working hard to get more visibility. I think as we get past Chinese New Year now, we'll be able to get more intelligence. But at this point, that's about the content wke know. Perfect. And maybe I'll just follow on that. I think outside of the GPU ecosystem, the custom ASIC is also ramping up pretty aggressively. And our forecast is that sometimes over the next few years, that it could be a 50/50 split between custom ASIC deployments versus more GPU. Maybe talk about your position on the non-NVIDIA side. Okay. We are designing with others. Other computer companies, EMS companies are getting into server power designs. So we've positioned our FAEs to reach out. FAEs, whether they're Vishay FAEs or our reps, they're at the design locations of computer companies. They're at the design locations of EMS who are doing server power. So we are in a good position to design the technologies across Vishay, again, introducing them to be able to support 80%+ of the components on the board. So I would say at this point, our design activity, we're in a positive spot. Got it. One more, if I may, before I go back into the queue. Typically, your Q2 is a seasonally stronger period. I didn't hear you guys call a bottom, but would it be in part just based on some of the positive book-to-bill, also pretty normalized inventory that we should be tracking to more of a positive quarter, just given some of the positive seasonal trends in your June quarters? Okay. The book-to-bill in Q4 was positive. The book-to-bill in Q1 is also attractive. We're now looking at the Chinese New Year. You always watch Chinese New Year before and after. How will the bookings look once the people are back to work? So the next couple of weeks will be a signal if it's sustainable. Automotive, the schedule agreements I mentioned, they're showing us better volumes in the first half of the year, quarter-on-quarter. So we're optimistic about that as well. The guide of 710 that we put in the quarter, Dave mentioned there's the annual ASP reductions that have come from our contract negotiations. So that all lands in January. We do have volume growth. So we'll get past the Q1, get those ASPs in place, and then work to grow volume. We like how the book-to-bill is setting up at this point. Great. Thank you, guys. Thanks, Peter. Thank you. As a reminder, ladies and gentlemen, that's star one one to ask a question. I'm showing no further questions in the queue. I would now like to turn the call. One moment. We do have a question that came up. Please stand by for our next question. Our next question comes from the line of Ruplu Bhattacharya with Bank of America. Your line is open. Hi. Thank you for taking my questions. Joel, to start, I want to ask you about your outreach to distributors. Does Vishay now have the proper amount of inventory in the channel, or do you see any excess inventory at distribution? And with that, can you also comment on pricing in both passives and actives? Is there any scope for Vishay to raise prices in either segment? Okay. Hi, Ruplu. Thanks for the question. Our work with distribution began right away with Vishay 3.0, January of 2023, and we've been adding SKUs quarter-on-quarter. We've added nearly 50,000 SKUs now after the period of two years. Those were part numbers that Vishay did not have on the shelf. Our inventory at distribution, I said, is relatively stable. We're at 27 weeks. The inventory, I'll say, is fresh. Items that are non-moving or idle would be very, very small, very small. So you see the inventory at 27 weeks. If we look at Asia versus Europe versus the Americas, Asia inventory in Q1 of 2024 was 20 weeks. Asia inventory of Q4 2024 is 18.5 weeks. Americas inventory in Q1 of 2024 is 47 weeks. Americas inventory in Q4 2024 is 51.5 weeks. A lot of catalog plus other part number adds. Europe inventory, we talked about it. We've got to get through this inventory in Q1. The Q1 2024 inventory was 18.7 weeks, and the inventory at the end of Q4 was 23.4. So we talk about Europe. We got to get through that inventory in Q1. But as far as the inventory itself, it's the right inventory. We've added inventory because of the SKUs we've added. Regarding your question about pricing, pricing for distribution, we've made adjustments to our VPA, our published pricing in 2024. So we did take price protection. We believe on the screen for many of our products were competitive. So decisions can be made using the screen price. There will always be opportunities where a distributor brings in large volumes, million-piece opportunities, plus where they'll ask us to be a little more aggressive, and we'll take those into consideration. But overall, Ruplu, I think what we've done in distribution is well positioning us. We'll continue to work with distributor by distributor to better position Vishay and gain POS. Okay. Okay. Thank you for the details there. Can I ask you a question on CapEx? So you're guiding for $300 to 350 million of CapEx spend in 2025. You gave a lot of details, but I missed this. How much total new capacity is coming online in fiscal 2025? I know you have Newport coming online, and then maybe there are other sites. How has your total expectation for the three-year CapEx spend changed since the analyst day? So can you give us some details in terms of that $300 to 350 million? Where is that spend coming online? How much of it, like total capacity coming online, and has your three-year expectation changed? Okay. The $300 to 350 million, we first look at the fabs. We look at the Newport fab, getting the silicon products up and running. We talked about the dates that we have there releasing these structures, as well as landing the silicon carbide equipment that's there, putting the process in place. Continuing to get this fab turned on to Vishay products is where CapEx will be. The other fab is in Itzehoe, Germany. That's the 12-inch fab. We've got the building, and now equipment is part of that next step in the fab. CapEx continues as a majority of that $300-350 million is for the fabs. After that, we look into the individual product lines. We've done well to add capacity in 2024. I mentioned we've increased capacity for the company 23% since Vishay 3.0 began. That's good. We're in a good position. Now we look at line by line and modulate. What is the delivery time of equipment? It's no longer two years. It's no longer a year and a half. It's less. In our plan, we had spending based on what we knew about the delivery of equipment. We've also increased our subcontractor qualifications. This is great because we're able to take the Vishay recipe and have a subcontractor build the products without our own CapEx investment. So this is why we say modulate. We're going to make adjustments throughout the year. We're going to watch the order flow by these products. We might throttle back on some product lines because we've got subcontractor capacity coming. We might throttle up on spending because we're seeing the market move to a particular product where we think we're not, we might be at risk of underserving. So that's how we're managing it. We're excited about what we landed. 2025, there will be CapEx coming. To put a percent on 2025 yet, I don't think we're ready to do that because of the modulation we're doing with subcontractors. Okay. Okay. I appreciate the details there. Can I ask Q1uestion to David? Can you update us on your capital allocation priorities? And you mentioned free cash flow would be negative in fiscal 2025. So is it reasonable for investors to expect the same level of $100 million of return on capital that you had to shareholders in fiscal 2024? Should we expect the same amount in fiscal 2025? Hi, Ruplu. That's a good question. So first and foremost, I think to reset the bar, our policy is to return 70% of free cash to the shareholder. Okay? And even though in 2024 we had negative free cash, we chose to shoot higher, and we returned up at the end $105 million, okay, in 2024. In 2025, we're committed to the dividend, as I noted in the remarks, and we're going to make opportunistic share repurchases during the year, but we're not going to commit to a specific number yet. Okay. Okay. Got it. If I can sneak one more in, Joel, Europe is weak and Asia is strong. How do you see the regional mix changing in fiscal Q1? And will your playbook be any different across these regions? Meaning, are you hiring more in Asia because it's stronger? So how do you plan to deal with the mix of macro across these different regions in Q1? Thank you for taking my question. You bet. When we look at our FAE placement and our sales, the commercial salespeople, we're always moving these to the proper place too to be engaged with customers. So Asia is high concentration, for sure, of positioning the people in the right spot. We've got a great Asia team. They're well in tune with Vishay 3.0, and they get close to customers, and they bring back a lot of good intelligence. So Asia is still a main focus, and they're doing very well. Europe, we've adjusted the European sales team in some ways to be closer to the customer. This is happening in Q4 and Q1. We're excited about the team of people we have. The customers are trying to get an understanding of what's going to happen with their governments. There's an election coming in Germany in February. This election is important because colleagues that I speak with hope to see some direction by the government. First and foremost, people want to feel that the economies can move, the government has a direction, and they're sponsoring programs to make the business move. We're going to go through inventory digestion in Q1 in Europe, but I'll say the same thing about distributor position. We're going after better position. Our distributor team in Europe is working for that. We want to gain share. So even if the economy is soft or flat, we want to gain share of business we may have lost, regain it, or gain share of what's there. So we continue to concentrate. We're focused on each region. They are different dynamics, but our intention is to grow in each. Asia seems to be out front at the moment. Okay. Thank you for all the details. Thank you, Ruplu. Thank you. Please stand by for our next question. We have a follow-up question from the line of Peter Peng with JP Morgan. Your line is open. Hey, guys. Thanks for the follow-up question. I have a question on the gross margin front, and so there's a few puts and takes, so with the Newport, it should be, I would imagine that it should be a tailwind as we kind of move through 2025. But then I think there's also additional depreciation expense that we should account for. So just take into those factors. How should we think about your gross margins as we kind of move through the year? All right. That's a great question. And you hit on some of the puts and takes up front already, but obviously what drives our margin is volume, right? And based on Joel's comments and input from customers, we're expecting volumes to improve through the year. In terms of the Q1 guidance, we already have the ASP declines baked into that margin for the annual contract renewal, the OEMs. We're doing the usual cost downs, cost reductions, efficiency gains, automation. You noted the higher depreciation. Newport, your comment's a good one. We hope to be margin neutral towards the end of the year. So when we enter 2026, we're profitable. Okay? Then that'll step down that drag as we go through the year. And that's about, I think, all we have, but the focus this year on the Newport is obviously the technology transfer and the qualifications and the customer approval, not necessarily the profitability. So I think that's about all we can say on the margin. It's volume-driven, right? Volume is the swing factor. Peter, as we release these structures quarter by quarter, if it's a commercial product, industrial, we send out a PCN to notify our distributor partners that this is a new location. There's a timeframe that they get 30 to 90 days to sign off the PCN. Once we have that signed off, then we can start loading volume. So you're going to see a stair stepping of volume towards greater capacity utilization in Newport throughout the year. We qualify a structure. We get the PCNs approved commercially first. You'll see more utilization. Automotive, we got to get the automotive customer in for audits. We want to do this in parallel to component qualification. We got good people at Newport. They understand the technology very well. They're doing a great job of turning this from one owner to another. And I think our pace is quite good. We're expecting the tailwind, as you said, in 2025 to help us out on that margin. Got it. So the Newport from being 150 to 200 basis points of impact to being margin neutral. So that would itself be almost like a 175 basis point step up through the year. Is that right? We're going to see improvement quarter by quarter. Dave, the target is year-end. Exit the year-end to be neutral. Certainly. The Q1 2026, we're planning on profitability. Perfect. Great. Thank you, guys. Thank you, Peter. Thank you. I'm showing no further questions in the queue. I will now like to turn the call back to Joel for closing remarks. All right. Thank you, Tawanda. Thank you again, everyone, for attending our Year-End 2024 Earnings Call. As you've heard today, we are moving forward implementing Vishay 3.0 with speed and determination. We are ready to support our customers when the market turns up, and we're quite positive on what we've achieved so far. Thank you again. We'll see you at our next earnings call in May. Have a good day. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.