We are seeing strong momentum for our voltage translation ICs, power management, and networking products as vehicle communication and processing requirements continue to increase. Across comfort, style, and safety, we are seeing strong adoption of power protection, smart power switching, motor control, and automotive lighting solutions. The advanced lighting solutions, vehicle body electronics, and intelligent control modules continue to require higher level of functionality and reliability, creating additional opportunities for our products. In the electrification, the transition towards higher voltage EV platforms, faster charging infrastructures, and more sophisticated battery management system is driving demands for our power semiconductors Wide Band Gap Solutions, and Signal Management Devices. We continue to expand our portfolio to address applications ranging from battery management and onboard charging to DC-DC conversion and zone control architecture. Overall, our automotive portfolio continues to gain traction across both ICE and EV applications. Our emphasis on our three focus areas combined with higher vehicle semiconductor content continue to support our long-term automotive growth strategy. Turning to industrial market, revenue increased 5% sequentially and over 24% year over year. As a percentage of total product revenue, industrial was down 1% from last quarter, while actual demand remains strong. The industrial market continues to benefit from strong demand across AI infrastructures, industrial automation, robotics, energy management, healthcare, and smart infrastructure applications. BROS is being driven by increasing requirements for power efficiency, sensing, connectivity, and embedded intelligence in next-generation systems. With the shift towards 400-volt and 800-volt power architectures becoming an important trend in AI-related applications. Our power management product and discrete products remained key growth drivers. This transition supports higher power density, lower distribution losses, and more efficient immediate bus conversion, creating additional contact opportunity for us. We are also seeing new growth opportunity emerge through humanized robotics, where increasing system complexity is creating demand for discrete products, voltage translation, and connectivity solutions as commercial deployment moves towards scale. Overall, BIOS is well-positioned to benefit from the increasing intelligence, embedded computing, connectivity, and power demands for next-generation industrial systems. In the computing market, revenue increased 18% sequentially and 33% year over year. This market continues to be our strongest growth driver due to accelerating adoption across data center, AI server, cloud infrastructure and storage platforms. Our timing portfolio continue to gain traction as customers transition to next generation PCI Express architectures. We secure multiple strategic server platform design wings for our clock generators and timing solutions. With design activity, customer engagement, and backlog training remain strong. New timing products are now ramping into the latest AI server platforms, further expanding our presence in this high-growth market. Beyond timing, the AI infrastructure built out is increasing semiconductor content per server, creating opportunities across connectivity Sino Integrity, Interface, Power Management, Sensing, and Protection devices. We're also benefiting from increasing power density requirement in AI servers and data center, which are driving strong demand for our power distribution, protection, sensing, and voltage reference portfolios. In the consumer market, revenue increased almost 10% sequentially and 17% year over year, but remained flat to the last quarter as a percentage of total product revenue. Overall, the market remained challenged by memory shortage and slower demand. That said, we did see some areas of strength that helped offset the supply challenges. We saw strength in charging, USB power delivery solutions, ESC protection devices for storage applications, and level shifters and interface product benefiting from increasing adoption of AI-enabled IoT devices, smart home systems, and multi-voltage architectures. Together, these product families reflect our focus on higher-value consumer applications where increasing functionality, connectivity, and power efficiencies are driving greater semiconductor content. Lastly, in the communication market, revenue decreased 7% sequentially and approximately 3% year over year. Demand in this market remains soft, especially in the smartphone market in China. On a positive side, networking remains strong with demand creation momentum supported by growing investments in AI infrastructures, enterprise networking, and next generation mobile devices. With mobile and edge devices, We continue to benefit from demand for power management product in AI-enabled smartphones, wearables, and emerging smart glasses. AI is driving new opportunities across both networking infrastructures and intelligent edge devices, expanding our design wind pipeline and supporting future growth in communication market for diodes. In summary, we are pleased with our strong growth momentum and Growth Margin Expansion as we continue to emphasize content expansion initiatives across our key focus area of automotive, industrial and AI-surfer-related applications. We are guiding for continuous growth in revenue, margin and non-GAAP earnings, which puts us on a solid track towards the achievement of our three-year financial goals. With that, we now open the floor to questions

We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. To withdraw your question, press star 1 again. We will pause for a minute for the questions to come in. Your first question comes from the line of William Stein from Tourist Securities. Please go ahead.

Hi, this is Elliot Onn for Will. Thanks for letting me ask a question. First, can you provide some color on your SPFAB status of revenue and profitability, maybe where things stand on utilization and getting products qualified and moved in-house?

Well, hi, this is Gerry. Let me give you some insight about that wafer fab. You know, usually we don't provide this kind of P&L for that particular wafer fab, but as I say, so I found a couple quarter, and I do believe in the progress of loading that wafer fab, continue growing on that. And also we do see the key customer starting using the wafer fab, the wafer produced from the wafer fab as their product, and I do believe in the near future, and we can continue to grow the utilization on this wafer fab.

Okay, thank you. And then if I get one more, can you talk us through in-market expectations as we move into Q3 and then potentially into Q4 as well, given such strong growth you're expecting? And then if I can try, if you could look a little further out, maybe ranking your growth opportunities as you move into 2027. Thank you.

Hi, this is Emily. Let me answer this question, right? So overall Q3, you know, with very strong guidance, 14.5 quarter over quarter growth, we do expect growth from almost all the end market segments. I would say majority would continue driven by the AI-related applications, especially on the surfer motherboard side. I think automotive definitely showed a lot of strength, very strong, you know, growth momentum. and we expect that will continue by market share gain and the expansion of some of the products. On the industrial side, I think the excess inventory is definitely beyond us right now. We definitely also see the market recover from there, so we also expect industrial growth in the third quarter. Consumers usually a peak quarter for the third quarter. I know there's some combination of different things, but all in all, we also expect that to see some improvement. On the communication side, smartphone demands very similar to consumer, so similar to the comment I made before. On top of that, we believe the networking portion of this communication market segment should continue to grow, driven especially with some AI networking switches and routers. So I would say all in all, We actually have a really good guidance for Q3, and we're definitely marching towards to make sure we achieve and meet the goals. Regarding Q4, we usually don't provide more than one quarter's guidance, but definitely we're seeing good momentum so far for the Q4. I think for next year, It's a little bit longer out there, but all in all, with the market we're seeing, we feel like it should be stronger than usual.

Thank you.

Our next question comes from the line of Tristan Guerra from Beard. Please go ahead.

Hi, good afternoon. Some of your peers have reported some constraints, notably for power product supply. Are you seeing any supply constraints? Will you be able to ship more without it, notably into data center?

Right, Tristan. I think overall we've been talking about very strong demand across the board. You know, I think there's definitely pockets of, you know, I would say areas that are a little bit more constrained than the others. But all in all, what we really want to focus is actually focus working with our strategic customers and give them the best support we can. You know, I think during the COVID, we actually have similar discussions before. Our focus is really working with the customer, understand their true demands, and give them the best support, make sure to prevent any of the shortage or lying down issue they are facing. But I would say all in all, because the demand is so strong, definitely there's pockets of areas of supply is a little bit constrained.

Yeah, and also, Tristan, let me add more color on that, right, Casa X? And we said we do see a very strong demand this year, even furthermore in the next year. But as we leverage more on our heavy model, no matter internal or external, we want to make sure we can continue at capacity, no matter by continuing utilizing our internal wafer fed and also adding more capacity in our backend to support our customer. So our growth is not only living on the demand, but also we do have more capacity we can support the customer for the future needed.

Okay, great. And then just as a quick follow-up, so you mentioned capacity expansion efforts. Is that on the front end? Is that internal capacity? And if so, what geography are you building capacity?

Well, let me say that in this way, okay? For the wafer fed, we continue utilizing improving the utilization for our GFED and SPFED, and there's some room we can also do more on that. and also we're doing some migration from six-inch to eight-inch, right, to get more capacity on the wafer fat. Also leverage our external partner, right, and no matter the partners in Korea or in Taiwan to get more capacity from them. So that's one thing. Secondly, for our assembly testing, probably 75% assembly testing we do internally. On the particular package we are doing here, we do add more capacity on that. We are not adding every package in the capacity. We selectively pick out a package which might get more advantage on that, for example, like DFN or CSP. This type of package, we can provide a better value and can provide a better service to our key customers, just like Emily said. And we'll continue to do an investment on that.

Okay, and then lastly, I'll just squeeze one in really quick. What's the percentage of your production that's currently fabbed versus what's outsourced?

It's probably 50-50 at this moment. Great. Thank you very much. Thank you.

Our next question comes from the line of David Williams from Needham and Company. Please go ahead.

Hey, everyone. Thanks for taking my question.

I certainly appreciate it.

Hi, David. Hi. So, look, you guys are doing a really great job here of finding the demand and continuing to grow in all the right areas and drive the gross margin. I guess as I kind of think about the most recent acquisition you made, Elevate, can you talk maybe through some of that color or maybe rationale? It seems like a really great fit. But just kind of curious if there's anything about that acquisition that maybe we're not thinking of or haven't really understood yet, do you think?

Of course. And first, we are very excited about the recent proposed acquisition of this company. As I said, Elevate is a fabulous semiconductor company, very special and very strong in developing IT for ATE, that kind of application, like automated testing equipment. Okay, I think an elevator compliment, that is currently analog and mixed signal product portfolio with highly differentiated IP and a higher margin product with a low power, high density, higher performance signal chain amplifier and a data converter. We do, of course, see a lot of synergy, especially on product synergy, and also we do see the market synergy, for example, by increasing our exposure on the attractive ATE market and also through this new customer and opportunity to expand our share for the wallet to the existing customer. So all in all, I would say that with this kind of synergy, we combine elevator core channel expertise with the Dials Analog and the Power Portfolio. And we can easily expand that task channel provider to AT platform solution provider. So with this kind of synergy together, we can easily, for the addressable market, send probably like $1 billion at least at the bottom.

OK. Very good. Certainly appreciate that. And then I think this question was asked around the edges earlier, but just kind of curious if you could give us your thoughts on maybe the demand trends and how the channel inventory, if you feel like you're shipping to consumption, and maybe any concerns about double ordering, just kind of given the strength of the demand. Do you think that's beginning to happen or do you feel like you've got a pretty good handle on that? Thank you.

Hi, David. This is Emily. If you look at our channel inventory, we actually decreased both in terms of dollars as well as weeks. is definitely lower than our normal range of 11 to 14 weeks, right? So we definitely don't see the double booking or double shipments to the customer building up the channel inventory at this moment. I think, you know, what we're looking at is, you know, we try to balance, you know, the ship through at this moment, but we're not there. So I don't really think this is a concern, right?

Thanks so much, I appreciate the help.

That concludes our question and answer session. I will now turn the call back over to Gary Yu, CEO and President for closing remarks.

Thank you everyone for participating on today's call. We look forward to reporting our continued progress on next quarter's conference call. Operator, you may now disconnect.

Ladies and gentlemen that concludes today's call. Thank you all for joining. You may now disconnect.