Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Matt Sheerin with Thomas Weisel Partners. Please go ahead.
Alberto Mann – Thomas Weisel Partners
Hey, guys. It is actually Alberto Mann calling in for Matt. The first question I had was on the gross margin. There was a pretty big impact from the materials that you were able to offset by productivity gains. Going forward, as your mix gets into more material content, how much do you think you can offset with productivity gains and yield improvement? I mean, is most of that behind you or they are still away to go?
Reza Meshgin
Alberto, this is Reza. I will say that we still have room for improvement and also, the material content that we have right now is a very good representative as far as how sophisticated types of assemblies that we are making now would be and it is for the foreseeable future. So although the material content may go up slightly, it is not likely that it will go up dramatically. Now we get into programs and types of devices that require much higher material content, then obviously we will communicate that proactively. As far as how much more improvement can we make with our internal efforts, you can kind of look at what we have done in the last year, and I would guess that maybe a percent or so would be a projection for another year to go, but nothing much more than that.
Alberto Mann – Thomas Weisel Partners
Okay. That's helpful. And then, you spoke about the fifth OEM coming online in Asia. Can you discuss maybe if you are in multiple programs or just one program and then if any of that is shipping in volume yet?
Reza Meshgin
We are in more than one program and we are – you kind of have to put the volumes into perspective. We are shipping in volumes. But obviously, the count in volume of program matters from one type of model to the other. So the specific models are in volume production.
Alberto Mann – Thomas Weisel Partners
Okay. And just in terms of the Chengdu facility, is there any particular reason you selected Chengdu, is it to be closer to a potential customer and maybe if you can elaborate a little bit on the timing you expect to ramp up that facility.
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