Question · Q3 2025
Ross Seymour asked about the flow-through of gross margin into next year, specifically regarding depreciation changes, utilization dynamics, and potential inventory headwinds in H1 2026. He also inquired about the company's general approach to OpEx for next year, including growth rates and R&D allocation, following recent restructuring.
Answer
CEO Haviv Ilan reiterated depreciation guidance ($1.8-$2B this year, $2.3-$2.7B next year at the lower end) and stated that lowering loadings now positions them well for inventory in 2026, with a focus on free cash flow per share growth. CFO Rafael Lizardi clarified that OpEx (excluding restructuring) is expected to be flat Q3 to Q4, and the company maintains a disciplined approach to R&D and SG&A allocation, prioritizing long-term growth opportunities in industrial, automotive, and data center markets.