00:00 Speaker A
Um, and Matt, for for those who is not who are not as familiar with Jabil, um, talk to me about your role in this business. What exactly are you guys doing when you talk about transceivers and liquid cooling? Basically, you guys are helping build the racks that are in these data centers, right?
00:32 Matt
We do. We do much more than that, actually. And so, you know, traditionally, uh, we’ve probably been viewed as a a company that puts together a bag of parts, but in actuality, we’ve expanded our capabilities dramatically. So, I mentioned transceivers, uh, we made an investment to bring in silicon photonic capabilities, which is effectively the transmission of data via light. It’s got a much lower latency and it requires less power. And so having that core capability will set us up for success and adding much more value over time as things like co-packaged optics become a more standard technology. At the same time, inside of the data center, whereas previously all data centers were cooled with air, they’re now being cooled with liquid. So having capabilities, understanding how to move liquid throughout the data center, cool chips with liquid versus air, that’s a capability that adds value well beyond putting together and assembling a server. And so we really feel like we’ve done a good job of bringing on capabilities that add more value for customers and I think you’re seeing that in our results.
02:44 Speaker A
Um, as I mentioned, you saw that big growth year over year in this infrastructure business. If, if my math is right, it’s about 40% plus, 44% of overall revenue last quarter, and you guys gave a projection that for the full fiscal year that revenue will be 8 and a half billion dollars, which will be up 50%. You’re also putting some money into the manufacturing capacity now as a result of this, a $500 million investment in the southeastern US over the next several years. Is your constraint at this point capacity? In other words, do you have more demand than you’re able to keep up with at this stage?
03:55 Matt
We do have, uh, a significant amount of demand. Um, regardless of that, we would still build incremental capacity because one of the biggest value props of doing business with Jabil in this market is that we are a US domiciled US manufacturing company. And a number of our competitors with similar capabilities are Taiwanese or Chinese. And so as you think about AI, where it’s going, the importance of AI, software and cloud, being and having a US manufacturing partner that can help protect the IP that comes along with this technology as well as the know-how, the process knowledge, it’s incredibly important. We feel like the demand is going to just continue to grow, and so, yes, we’re we’re definitely, um, pushing up against some capacity, uh, in the US. Having more capacity, uh, we feel like is going to be something that’s going to be, um, taken up pretty quickly.