China DRAM Sales
Q: How is China DRAM demand affecting your results?
A: We saw high shipments of DRAM to China, consistent with an approximately $500 million increase seen in Q4. " This elevated demand is expected to continue in Q2, after which we anticipate China mix to normalize from 45% to around 30% over the year. "

2024 WFE Outlook
Q: How do you view the WFE market in 2024?
A: We expect DRAM to remain strong, NAND to improve slightly, and leading logic to be larger as gate-all-around and new investments ramp up. " There will be some digestion in ICAPS and China after enormous growth in the past two years. "

Continued Outperformance
Q: Will you outperform the market again in 2024?
A: We anticipate continued outperformance due to our strong positions in major inflections like gate-all-around and backside power distribution, which are incremental billion-dollar opportunities. " We're well-positioned in DRAM, ICAPS, and Packaging. "

Sculpta Technology Growth
Q: What's the update on Sculpta technology?
A: Sculpta, our breakthrough pattern shaping technology, offers a cost-effective alternative to EUV double patterning. " We expect Sculpta revenue to grow to close to $200 million in 2024 and ramp to around $0.5 billion annually in the next few years. "

2025 Market Optimism
Q: How do you see the market shaping up in 2025?
A: We're seeing improvements in inventories and utilization across the market, and our customers express optimism for 2025. We anticipate growth in semiconductor end markets and investment cycles on the leading edge. "

Gross Margin Impact
Q: How will China mix normalization affect gross margins?
A: As China mix normalizes from 45% to around 30%, gross margin will come down from 47.9% to a more normal level. " The underlying gross margin is approximately 46.7% without the higher China mix and will continue to improve slowly. " We maintain our 2025 gross margin target of 48% to 48.5%. "

HBM Growth Impact
Q: How will HBM growth affect equipment spending?
A: HBM accounts for about 5% of wafer starts. " Customers are shifting capacity to HBM, which has larger die sizes, driving up utilization and eventually increasing equipment orders. "

DRAM and NAND Recovery
Q: What's the outlook for conventional DRAM and NAND?
A: We're seeing improvements in inventories, pricing, and utilization in both DRAM and NAND. " Utilizations have been low but are picking up, and we expect technology advances to drive spending. "

CHIPS Act Delay Impact
Q: Are CHIPS Act funding delays affecting your programs?
A: Schedule changes are consistent with our outlook, and we don't expect changes to the ultimate destination of these projects. " We're preparing our applications for CHIPS Act R&D funding. "

ICAPS Growth and Outlook
Q: How much did ICAPS grow, and can leading-edge offset its decline?
A: ICAPS grew approximately 40% in 2022 and grew faster in 2023. " We expect some digestion in ICAPS and leading-edge to accelerate but won't specify which force will be stronger. "

China WFE Spending
Q: How do you view China WFE spending and concerns about duplication?
A: We don't see stockpiling and believe investments are rational and serving end markets. " Over the next four years, we expect added wafer start capacity in China. "

Advanced Packaging Revenue
Q: Can you clarify the $500 million HBM-related revenue?
A: We expect our HBM packaging business to increase to almost $500 million in 2024. " Our overall Advanced Packaging revenue is around $1.5 billion. "

Revenue Transition Timing
Q: Will there be a revenue dip due to ICAPS digestion and leading-edge pickup?
A: We recognize the dynamics but won't guide future quarters. The impact depends on which market force is stronger. "

Materials Engineering Demand
Q: Will delayed high NA EUV adoption lead to more materials engineering?
A: Innovations are driven by new structures and materials like gate-all-around and backside power. " These require advanced materials engineering, increasing our served market. "

Leading-Edge Growth Source
Q: Is leading-edge strength from new fab builds or capacity additions?
A: Typically, it's from greenfield new fab build-outs. "