00:00 Speaker a
Well, Matt, for anyone who is not familiar with Jabil, talk to me about your role in this business. When talking about transceivers and liquid cooling, what exactly do you do? Essentially, you're helping to build racks in these data centers, right?
00:32 mat
We do. In fact, we do more than that. So you've traditionally seen us as an AA company that probably packs bags of parts, but in reality we've dramatically expanded our capabilities. So I mentioned the transceiver, um, we made an investment to bring silicon photonic functionality. It has much lower latency and less power. So having that core functionality allows us to set us up for success and add much more value over time, as things like co-package optics become more standard technology. At the same time, inside the data center, all data centers used to be air-cooled, but now they are liquid-cooled. So, knowing how to move liquids across the data center and understanding cool chips with liquids and air is the ability to add value as well as assemble the server together. And we really feel that we have done a good job of introducing the ability to increase value in our customers. I think you're seeing it in our results.
02:44 Speaker a
Well, like I said, you've seen that great growth every year in this infrastructure business. If my maths are correct, if it's more than 44% of the overall revenue for the last quarter, it's about 40% or more, and you all predicted that annual revenue for the entire fiscal year would be $8.5 billion, a 50% increase. And it has put some money into its manufacturing capacity as a result of a $500 million investment in the southeastern US over the next few years. Is the capacity constraint at this point? In other words, is there more demand than we can catch up at this stage?
03:55 mat
Well, there's a considerable amount of demand. Well, regardless, one of the most valuable props to do business with Jabil in this market is that we are a US country manufacturing company. Many of the competitors with similar capabilities are Taiwanese or Chinese. And when we think about AI, the importance of AI, software and the cloud is that we have a US manufacturing partner that can help protect IPs with this technology and know-how and process knowledge. That's very important. Yes, we are undoubtedly against any capacity in the US as we feel that demand is just continuing to grow. It has more capacity, um, we feel it will be something that will be picked up pretty quickly.
