However, we expect that as the industry revives and demand picks up, TI could leverage this additional capacity and consequently increase its factory utilizationrates which, in turn, will improve the gross margins.
These are hardly excessive growth rates in normal times, much less in an economy with almost 10 percent unemployment, with capacityutilization down from the 80s to the 60s, and with nonbank credit sinking, productivity growing rapidly, and with unit labor cost declining.