Aman

Aman asked for context on the Eagle Line's current key metrics (yields, production time) and its scaling trajectory throughout the year, leading to commercial transfer to licensing partners. He also inquired about the allocation of 2026 CapEx between the Eagle Line and 'beyond QSE-5' technology, and the goals for the 'beyond QSE-5' platform.

Answer

CEO Dr. Siva Sivaram detailed the rapid development of the Eagle Line as a manufacturing prototype pilot line, emphasizing its role in monitoring and improving metrics like uptime, yield, and cycle time for customer transfer. CFO Kevin Hettrich stated that the bulk of the $40 million-$60 million 2026 CapEx is allocated to 'beyond QSE-5' development, aligning with their capital-light licensing model. Dr. Sivaram added that 'beyond QSE-5' involves continuous performance improvements and new upgrades every 18-24 months to advance the technology frontier.

Aman asked for context on the Eagle Line's current key metrics (yields, production time) and how they are expected to scale throughout 2026 to enable commercial transfer to licensing partners. He also inquired about the allocation of the $40 million-$60 million CapEx for 2026 across the Eagle Line scaling, QSE-5 expansion, and new end markets, and how this CapEx level might be sustained beyond 2026. Finally, he asked about the specific goals for the 'beyond QSE-5' platform.

Answer

CEO Siva Sivaram explained that the Eagle Line, a highly automated pilot line, is being used to monitor and improve metrics like uptime, yield, reliability, and cost, working closely with partners for eventual transfer. CFO Kevin Hettrich added that the Eagle Line is crucial for all four 2026 goals, providing samples for automotive commercialization, new markets, and internal development. Kevin clarified that the bulk of the 2026 CapEx ($40M-$60M) is for the 'beyond QSE-5' goal, with incremental spend for QSE-5 and new markets, emphasizing that this magnitude is expected for steady-state advanced development under their capital-light licensing model. Siva stated that 'beyond QSE-5' involves continuous performance metric improvements, with new upgrades expected every 18-24 months.