Q1 2021 Tower Semiconductor Ltd Earnings Call
Good day.
Good day.
[music].
Ladies and gentlemen, thank you for standing by welcome to the tower semiconductor first quarter 2021 results Conference call. All participants are currently in a listen only mode. Following management's formal prepared statements instructions will be given for the question.
On an answer session for operator assistance during the conference. Please press Star Zero as a reminder, this conference is being recorded May 12, 2021, joining us today are Mr. Russell Ellwanger.
Power's CEO and Mr. Oren Shirazi, CFO I would now like to turn the call over to MS. No eat Levy senior Vice President of Investor Relations and corporate Communications Ms. Levi. Please go ahead.
Thank you and welcome to the tower semiconductor financial results conference call on them for the first quarter of 'twenty 'twenty. One 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 current do you expect from these.
These uncertainties and risk factors are fully disclosed in our forms 20-F F. O F. Three and 6K filed with the Securities and Exchange Commission as well as filings with the Israeli Securities Authority. They're also available on our website got on it.
It seems no obligation to update any such forward looking statements.
Please note that the first quarter of 2021 financial results have been prepared in accordance with U S. GAAP financial tables on that thing todays earnings release and in this earnings call. Also include certain adjusted financial information that may be considered on non-GAAP financial measures under like relation G and related reporting requirements as established with the securities and exchange.
Commission the financial tables include a full explanation of these measures and a reconciliation of these non-GAAP measures to the gift financial measures.
Now I'd like to turn the call to all on C O. Mr. Ross at Island Gear Roxanne. Please go ahead.
Thank you welcome everyone and thank you for joining our call.
We entered the year with strong customer demand and increasing forecast across all our business units and technology platforms.
Our revenue from the first quarter of the year was $347 million exceed.
Exceeding the midpoint of our guidance.
And representing year over year, or 21% organic growth and 16% total growth.
As we stated in the previous quarter call, we expect revenue growth throughout the year.
And are giving a midrange guidance for the second quarter of 2021 of $360 million.
The highest quarterly revenue in the company's history.
Midrange guidance represents year over year organic growth of 26% or 16% total growth.
Driven by a significant shift towards five G enabled handsets with the associated increase in fiber content and our market share gains the first quarter realized the highest RF soi revenue in our history.
With planned further increases for the second quarter.
Our silicon germanium RF infrastructure business continues to grow in the Datacom side with very strong demand for 100 gigabit per second Transceivers sold primarily for Hyperscale data centers, which itself is a strong growth market.
Our silicon germanium telecom driven 10 gigabit in 25 gigabit per second Transceivers Houston five G wireless infrastructure Buildout was strongest during 2020 has slowed some in early 2021 with customer expectations for renewed growth later in 'twenty, one into 2020 two.
Total silicon germanium demand is solid with expected year over year growth.
Our foundry power IC business is experiencing surging demand with strength in industrial consumer and automotive segments.
In addition to benefiting from a very favorable market cycle, we're uniquely positioned to benefit from growth in electric vehicles, with well established customer base and battery management.
Additional new technologies have been developed such as the integrated very high voltage capacitor galvanic isolation process announced this past quarter, enabling isolated gate drivers for silicon carbide, and gallium nitride automotive power stages among others.
Our power discrete business is rebounding with forecasted growth over the coming quarters expected to fully utilize the dedicated discrete capacity on our manufacturing facilities.
Our image sensor business is realizing significant growth throughout the year, driven by both market growth and market share growth in industrial sensors with full recovery of the medical dental markets and incremental new business in 300 millimeter large sensor medical we expect record yearly revenues and image.
King.
First quarter 2021 utilization levels were as follows.
Adult Hemic, Israel Fab, one our six factory it wasn't 70% utilization as of today, we've seen and crest increase the level of utilization to 80%.
Fab two was it 80% presently at 85%.
Newport Beach, California, Fab three was at 75% utilization as we continue to adjust for increased silicon germanium mix.
Our San Antonio Factory Fab nine was at about 70% utilization.
Looking at our T. P S <unk> fabs in Japan utilization for eight inch foundry business was at about 70% rate being non photo bottleneck limited, which is being addressed on the capacity expansion plan, we announced this past quarter.
Our 12 inch foundry business was at about 90% rate similar level to the previous quarter, but less number of layers being increased following the 2020 capacity expansion.
To summarize.
With a strong first quarter as a base, we are thrilled with the business and operational capabilities, enabling our second quarter midrange guidance to be a company record revenue.
Our comprehensive foundry platforms are replete with advanced analog technology differentiation.
Which is the source of our customer partnerships with Z analog industry leaders.
We're excited with the prospect of continued leadership expansion throughout the year.
With that I'd like to turn the call over to our CFO Oren shirazi or in place.
Hello, everyone.
Our first quarter 2021 results today, demonstrating a remarkable 16% year over year revenue increase resulting in 98% operating profit increased 66% net brokerage income.
That's provided on mid range revenue guidance of $360 million for the second quarter of 2021.
Which is an all time record revenue for the company.
To address our customers' demand exceeding capacity on to increase our revenue in the mid and long term.
We executed our previously announced capacity expansion plan for our eight inch and 12 inch Fabs and issued $150 million purchase orders from when you first joined equipment and facilities.
We chose the resulting in capacity increase commencing in the second half of this year targeting full qualification during the first quarter.
Next year.
I will now move to our first quarter P&L highlights and then discuss our balance sheet and cash flow financial statements.
Revenue for the first quarter of 2021 was $347 million $47 million higher year over year, reflecting 16% year over year revenue increase.
Looking at our organic revenue, which is defined as total revenue excluding revenue from Norbert on Japan previously Panasonic semiconductor.
And revenue from axiom in all its on.
Antonio Fab revenue in the first quarter of 2021 reflects 21% year over year increase.
Gross and operating profits for the first quarter of 2021 wheel $70 million and 32 million respectively.
This gross profit is $17 million higher almost 33% higher volume.
And these operating profit of $16 million, Ohio over 98% higher year over year.
Net proceeds for the first quarter of 2020, you on it was $28 million or.
26 cents basic and diluted earnings Bill Sheila.
<unk> net profit is $11 million higher or 66% higher year over year.
Looking at the balance sheet with demonstrated again, a strong and stable financial position a few points to note showed them and locked on debt in the balance sheet decreased from $390 million.
Of December 31, 2020 to 343 million on as of March 31, 2021, mostly due to 29 million debt repayment made fueling this quarter primarily comprised of scheduled principal payments on account of bond series G.
And related in relation to our debt and corporate operating in May 2021 standard and full my locked in Israeli lighting company that is fully owned by S&P global ratings.
Completed its on our rating review of the for the company and affirm our corporate credit rating and bumps of GE credit trading off.
The other day minus including a stable horizon.
Shareholders' equity reached a record of $1 $48 billion.
Deferred revenue on customer advances balance under current liabilities and long term liabilities in the balance sheet have increased by $10 8 million and $8 5 million respectively.
Reflecting enhanced receipts from customers that asked to receive them on capacity to address their exceeding demand.
Current.
The ratio defined as current assets divided by short term liabilities is strong at the value of a full X.
Our cap table consists of $108 million outstanding ordinary shares and an additional 2 million on aesop related shows, resulting in a fully diluted share count of one other than $10 million.
And the last note on all this cash flow with both in the first quarter of 2021 cash flow generated from operations was $87 million.
<unk> and fixed assets, mainly for manufacturing equipment was $49 million net and we repaid $29 million.
Of our debt during the first quarter of 2021.
And now I will turn the call back to the operator.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. You will have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment kindly lift the handset before pressing the numbers.
Questions will be pulled in the order. They are received please standby while we poll for your questions.
Yeah.
Okay.
The first question is from Rob.
Raj Vin draw Gill of Needham and company. Please go ahead.
Yes, Thank you and congratulations on on on a good result.
Question Russell on the utilization rate, yes, thank you for kind of providing a breakdown on.
Just wondering you know given the surging demand.
That youre seeing across the different end markets.
I was just wondering why these utilization rates wouldn't be closer to kind of a 100%.
If you could provide any color there and then oren in terms of the gross margin kind of.
The directory as we go throughout the year I know in the past you had mentioned that you know the normal kind of 50% fall through on the growth profit might occur later on in the year, because you're increasing capex.
Related to the capacity that that could affect the margins just wanted to get a sense of how to think about the margin. The gross profit fall through as we progress throughout the year.
The revenue continues to grow sequentially. Thank you.
Yes, Thank you Raj.
A good question on the utilization I'm actually glad that you asked it.
I thought we had established this but maybe apparently not well enough our target utilization is 85%, we do not take overrides.
For US a factory could really never run at 100% cycle times would almost go infinitely long. So our target is 85% we can run up to 90 for periods of time, but we do not take a factor against it for example, a tower, it's impossible for us to ever talk about higher than 100% utilization.
So we really look at it as total photo layers that can possibly be run and then we have a target number that allows us to have good cycle times, which is the 85% again for short periods, one can always get a little bit higher and be upwards of 88% or 90, but for our models on 90% would never be sustainable.
So the utilization rates are actually not bad compared to what our target is on the target is 85.
Okay.
Alright.
Thank you for the question Yeah. Indeed, what we mentioned in February we released still holds a in terms of day margin and I'll repeat that so what we said is that the truly from the ramp up that we see now we expect and the.
Like all day all timing.
Revenue for Q2.
We expect ER to enjoy a lot of increase day ramp in margins from the second half of this year and what we mentioned last time.
On the Q on Q2 margin flow for all of you define it.
Will be less than the model because.
On the margins will grow the indoors.
But in terms of percentage will be a little bit lower because Q on Q2.
We are first they're facing increased amount of head count and so on spell boats headcount in order to hire the employees that we need to.
Both Dr ramp the conditions on others.
Operators to qualify them and also our spare parts and maintenance.
In order to qualify the new machines without arrived so of course, one day will come into play in full steam like AR was mentioned before.
Doing H due in full shortly in full force in Q1.
Until that time that we will enjoy the full upside revenue.
And flow through.
For Q1, as you'll see a it's pretty much a reasonable increase compared to Q4. So.
We still have some more cost.
I will not attributed to millennials because those more revenue youll see them later in the year and you will already see that in our Q2 guidance.
So basically Q on Q2 will show that growth in the dollar margin in the door.
It's about the north of the 50% incremental debt about from Q3, we should see the full the fruits of that.
Okay very good that's helpful and just for my follow up.
Russell.
Given the severe capacity constraints that the industry is experiencing particularly on mature legacy nodes.
Wondering you know on.
I'm concerned that these supply constraints were going to continue into the into next year.
I'm wondering how you're looking at the overall cycle from from your vantage point, how youre kind of managing capacity.
Any any any thoughts on the on the broader cycle would be helpful. Thank you.
Yeah.
So.
Clearly I am not a market analyst.
But we deal with looking at customer demand customer forecast.
And we typically only invest in capex and capacity expansion when we have customers very committed to be using the expansion.
There's obviously nothing worse than increasing capacity than having it sit idle.
Then the revenue margin fall through that are in talks about doesn't occur.
So we're very confident that the.
Mm $150 million that we're investing for capital expansion will be fully utilized as the capacity comes online. Some of it is really also some commitments that customers have made to use the capacity and some of it is just off a very strong relationship and or beliefs.
<unk> forecast and the trust that they will hold to the forecast that they're getting.
But I would say that at present were very confident that all of what we're buying and increasing will certainly be fully utilized in 2022.
Certainly as maybe a little bit hard, but where we're very committed and confident of the.
The demand cycle that we have continuing on.
As I stated in many areas.
Our growth is certainly outpacing the.
The industry growth. So a favorable cycle is good for everybody the old expression when the tide goes up all ships go up that's very very true.
But the fact that we're outpacing I think our guidance for growth.
Q2 over Q1 against others that have guided already is probably on the very high end for quarter over quarter growth.
We really expect growth throughout the year.
So the fact of having market share increases, which I think is pretty obvious that we're having.
Outpaces sick.
Cyclicality and just shows demand increases.
Thank you for that.
Okay.
The next question is from.
Cody.
Richard Shannon of Craig Hallum. Please go ahead.
Well, great Russell and Oren. Thanks for taking my questions here. Thanks from Andrew Lazar comments here from yes, you bet.
Your last comments about showing share gains I suspect that was a broad statement, but let me ask it a specific to RF Soi you said you had a record quarter in the first quarter and are growing here to what degree or are you seeing the results here this year coming from share gains versus market growth, obviously five years very.
Very good market here, but to what degree the share gains also add to it.
It's a little bit hard for me to quantify that I'm quite convinced that there are share gains, though because if you look at the.
Guidance is of some major mobile players.
They are flat to down Q1 to Q2, and we're stating that we're going up Q1 to Q2.
So that is strongly attributed to share gains now why does that become a little bit difficult for me to quantify them.
Some of the growth is obviously attributed to the movement from.
Mm three G or <unk> into five G.
That's if you're going from <unk> to five G. Youre looking at 34, 30% to 40% increase in content from three G to five G. It's higher so the the revenue growth.
Is that we see is attributed to both its share gain.
As new customers gained share and its content increase so it's very hard for me to quantify from one quarter to the next.
I'm quite confident that we're gaining share because some of the customers that we're dealing with are having very very big revenue growth.
Which is bigger than the market growth itself the overall market growth so the.
But there is a content increase as well on the shift to.
To five G.
And the amount of five G. That's being used presently is on.
Substantially higher I think it went from somewhere.
What about.
From what analyst day from 250 million units and five G. In 2022. This year had expected 500 million units plus minus so.
What complicates the statement, but I would certainly say that the customers that we're growing with.
Are either gaining share themselves or growing in five G.
Yeah.
Okay and Russell to my question on the last conference call. You you answered you thought you're sharing her so I have somewhere in the twenties.
Where do you think that can go I mean is this something where you think you can get into the <unk> over the next couple of years any any way either qualify or quantify that that answer would be great. Thanks.
Our expectation is well into that were in the thirties.
I don't know that I would.
To be able to quantify that as you know I'm not necessarily giving a long term forecast.
But.
If I were to look at.
The demand that's being placed in the <unk>.
Customer growth expectations.
Certainly I think the the 30 is very realistic.
Okay. That's helpful. One last question from me I'll jump on line here, we've seen some pricing of raw materials, whether they are substrates are the things that are going up here when asked in the past year about the tightness you've seen from a capacity point of view you said you wouldn't necessarily you wouldn't.
Generally raise prices here, but are you seeing raw material prices rising to you and are you able to pass those along to your customers on any matter.
Everybody has price increases from time to time, we're not seeing any substantial increase in raw materials.
Certainly there is increased costs and some on infrastructure you know power is going up.
But.
The point of ASP increases.
We are.
We have with them are almost across the board we have ASP increases ourselves.
And some of the ASP increases really deals with just very strong customer relationships and their understanding that to increase capacity, we have to make sure that there's an ROI on it.
We have a good cooperation with customers and I think that's on the.
Q3 Q4 on.
We will see higher Asp's I don't think I know, we will from the base of customers that we're serving.
Yeah.
Okay. That's fair enough. Thanks Al that's all from me.
The next question is from Mark lipid tests of Jefferies. Please go ahead.
Hi.
Great. Thanks for taking my questions I had a few.
First one on the there was an increase in the financing and other expense line item on the income statement can you.
Just to review what was the driver of that and how how should we think about modeling that line item going forward.
Hi, Thank you for the question Yeah, you should model it going forward. It was a one time on nonrecurring item.
Which was mostly attribute it to a journal entry associated with the yen.
Again denominated assets.
That was impacted in Q1 volume movement of the Japanese yen against the dollar that's moved by coincidence.
Between December 31 on March 31 from one other than to do on other than thin.
There is no cash flow impact on that and there was no economic exposure related to that and so we didn't do any hedging for that because this is just a got a balance sheet item.
The changes impacting the P&L, but there is no cash flow all economic exposure here.
So basically this is not expected to recur because we made changes during Q2 already to this J P Y assets that the the terms of this JP I said that will result in that there would be no finance income even in the b on there.
For what was so it should be actually ignored.
Got you that's very helpful.
That's very helpful.
And the second question I had Russell maybe for you some comp some semiconductor device makers are talking about getting longer lead time orders from their their customers which is.
Pink often normal at this part of the cycle and but but some are talking about debt you know, making those orders are noncancelable.
How do you think about.
So this idea of having no noncancelable orders on your book books, and maybe if you could put that in the context of your earlier.
On that that you don't like to add capacity on this your customers are committed.
What is that can you.
Could you maybe.
Describe what it what does that mean that they are committed on.
Because I understand adding capacity can take a long time and you know that.
That suggests that there is a longer visibility and in into that into.
And to those orders for that capacity. That's you know that's going to get built in the future.
And then I had one last follow up after that thank you.
Mark so extra on its own and actually in all our.
Towns with our customers, it's a non consent there'll be old, meaning they cannot China set a debt fell just older. Even today, it's already done that way for years and it was very well occasions that customers really ask to cancel.
And really the other they do have a right to some time in some of the of the force some of the customer full sounds the purchase order to us to hold a certain a leap of faith and Oh.
We feel that our underlying to hold it for a few days and not more than usual at 30 days or 90 days and then continue to work, but to cancel a P O or to cancel a commitment. This is not even an option that you've given.
It's acceptable philosophy at least with our customers and our and our history shows I mean on Europe 22 yield.
In different functions and so maybe I lived in a handful of requests and also your question Linda.
Handful of cases, where we agreed to like Youll say, Ken say lumpy or something.
Something like that.
It does not happen.
And as far as long term commitments on.
There are several mechanisms that we have used and continue to use on long term commitments.
One is prepayments that only goes back against a certain amount of wafers over certain periods of time.
Others are contracts that insurer.
A minimal amount of what the customers buy.
On a maximum amount of what we must supply.
And then it comes a third part and that's really just.
Our trust with certain customers on their word of what theyre going to be buying and that they will buy those amounts.
Got you that's very helpful on that and last question if I may.
I understand that you're adding capacity in your higher margin products for for the existing existing capacity that you had.
Is there like an ability to shift that to higher margin products.
And can you Russell just describe you know what you you talked about you know.
Potentially getting higher price is can you just describe how that you know that.
<unk> process works is this something that happens annually.
If you happen to catch it you know.
The timing on it on an up cycle that you're in an advantaged position over you know or you know if you're on the job in a downcycle you're talking about pricing on your you know it's you know it.
It kind of sets you up for a different.
Scenario profitability scenario for for the next 12 months can you just review how that process works and then that's all I had thank you very much.
So I can talk about our philosophy on how we work it and.
We have a certain run rate with any given customer.
With.
Our pricing that we've given them on.
For those run rates, we don't increase prices.
When there is a request from customers for increasing their run rate independent of the platform.
And there's a competition for that incremental capacity will agree with customers for a raise price in order to get the incremental increase.
Obviously, if you see revenue going up.
As it is this year and as we forecast it to continue through the year.
There is incremental capacity, that's being used and that incremental capacity is really at a premium.
On other customers just.
In order to ensure capacity over time.
We will agree to higher prices, that's good for them because margin dollars or margin dollars.
On to.
Maximize margin percent and reduce margin dollars by not being able to get increased capacity doesn't make sense. I mean, that's the dollars that you're dealing with and it's from both sides of the same with us. So it works in both ways.
Hopefully that answers your question.
That's very helpful. Thank you Russell.
The next question is from Cody Acree of benchmark. Please go ahead, hi, Cory.
Hi, guys and thanks for taking my questions just a couple of quick ones.
Lead times Russell are you have you seen any extension in your lead times.
Delivery lead times.
Certainly if you were to look at the.
The middle of 2020, when everything was really down for.
A variety of reasons cycle time, when you're at very low utilization is phenomenal.
If you if that's what you're talking about I think is our cycle time right. Yeah. It is yeah. It is.
So yeah, our cycle times have extended a bit that's that's normal as you're going up in utilizations.
I D.
I don't think that's where out of the ballpark on cycle times, but you know the higher the utilization is the higher cycle times become.
Yeah.
Very good I guess as you look at the.
Cash and you're just coming on maybe for on the D.
The expense on the capacity or the the carrying cost of the capacity.
And to your cost of goods sold I would think that adds that production capacity goes into revenue. It starts to generate revenue, but that's when you would transfer the costs into your income statement into cost of goods sold and therefore on housing starts generating revenue you're starting to.
You see those margins decline or margin pressure, but on it sounds like on.
Are you accounting for that the carrying cost of the additional capacity differently.
No.
<unk> throw us youll, saying, Oh, but the you have to know that when Youll have additional cost for example, let's take an example in Q1, we had to hire more people in order to train them operate those technicians in order for them to be ready for the Q3.
Q4 increased capacity right.
So when you hire those people in you paid them payable in Q1. Unfortunately for me as a CFO I need to pay you talked to payroll. So when you pay the payroll you cannot capitalize it to the cost of the project, although the cost of capital and you cannot carry it forward and not recognize it in the P&L at the time, you'll pay the payable and it is not a capital light.
The item St. Paul that's spelled out to say we need to.
Volume on <unk>, just in order to qualify the new machines, you cannot capitalize it to the cost of the machine. According to GAAP. So actually what's happened is before you'll start to enjoy those revenue.
Those increased revenue.
You already suffer from the extra Aqua.
I see I see thank you for that and Russell Lastly, on your Youre discussing with share gains.
Everybody is scrambling right now for supply almost regardless of where you are in the food chain.
I know in the past historically, you've you've kind of had a policy that you.
You were not the second source, she will not kind of a buffer supply all of your products to your customers for any given designs is that still the case or how customers have been coming to you to to help to fill the gap they might be getting from others and if that's the case, how sticky do you think that share gain maybe.
That's a very good question, certainly theres opportunities that we've been given because people had been put on allocation.
However.
Before we would accept that it's off of.
Committed and guaranteed capacity usage from the people. So they would be committing to X amount of wafers per month over periods of time.
So that's the first part of it.
But the bulk of what we're growing as existing customers that are growing in their markets.
And hence the share gain deals there on the case of power management, we're really gaining a lot of new opportunities on.
Some of it.
Taking away customers from other suppliers for platforms that are superior on.
Some of it really was initiated.
Costs of.
Customers that are now looking for other suppliers not for an over in our case not that we would use it as an overflow supply, but it would be platforms that would be qualified and be used with us for their needs.
The very fact of being analog.
It's not so easy to just be an overflow supply the more specialized the.
Device outputs are the more difficult it is to just go to.
Supplier B.
For 10% overflow because the qualification.
To their customers.
Analog parts, it's quite extensive.
So the.
It's not really something that's that's done it could be done with the mixed signal part it could be done that's really much more digital or with pure digital parts or parts that have huge digital content, but it's very difficult for a customer to use us for overflow.
What's the type of <unk>.
<unk> that we supply them once they're qualified there really whatever skus are being sold are pretty much our skus no matter what.
Great. Thank you for that Russell I'm on.
Lastly, just any of this.
With your customers.
Wanting to guaranteed capacity or at least make commitments to wafer demand has there been any contribution of capital too for guaranteed capacity yes.
Any color.
I'm sorry please.
Any color.
I think you can see it on the financial statements or.
Yeah, if you look at the balance sheet, you'll see actually.
By the way I mentioned it in my script in my prepared remarks our.
Debt, we have out there and an $8 million increase in the line called the balance sheet deferred the revenue and.
And the customer prepayment.
Which day.
And like I mentioned customers that asked for additional day.
Capacity, so they paid upfront, which is not revenue and this is likely in the balance sheet.
Not independently.
Thank you.
You're very welcome. Thank you.
Yeah.
Okay.
Okay.
Okay.
Okay.
Mr. Al Whinger would you like to make your concluding statement.
Certainly thank you.
Once again I really do.
Thank you.
All of you for your participation.
And interest in tower.
We're very excited about where we're at extremely thrilled with the opportunities in front of us.
And expect to have a very good ride. This year on next year and are very happy to have you along with us for the ride.
We are very welcoming to further interactions in many many ways.
We have multiple upcoming events will host one on one meetings at the following conferences.
On may 17th we have the 18th annual Needham Virtual Technology Media conference on May 21st we're attending the open Hymer Israeli annual virtual conference.
On June 2nd we're at the 18th annual Craig Hallum, Institutional Investor Conference and on June 8th where at the Needham <unk> Companys fifth annual automotive technology day.
So certainly we would encourage.
All in any to sign up for those conferences and participate in the one on one sessions are three on one five on them on whatever they turn out to day, sometimes 10 on 120 on one but seriously we encourage your attendance there, but not just that we're very open to having discussions at any time about.
What we're doing how the market's moving on our position within it.
So just in closing were.
I'm looking forward to a very good year and very happy to share the results and rewards with you. Thank you very very much.
Thank you. This concludes the tower semiconductor first 2021 results conference call. Thank you for your participation you May go ahead and disconnect.
Okay.
Yes.
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