24 February 2023
Diversification of Technology, End Markets and Geography Positions Navitas for Scale
For fourth-quarter 2022, gallium nitride (GaN) power IC and silicon carbide (SiC) technology firm Navitas Semiconductor of Torrance, CA, USA has reported revenue of $12.3m, up 21% on $10.2m last quarter and 68% on $7.3m a year ago. Full-year revenue grew by 60%, from $23.7m in 2021 to $37.9m in 2022. However, this takes into account revenue from silicon carbide (SiC) power semiconductor device designer and manufacturer GeneSiC Semiconductor Inc of Dulles, VA, USA (acquired in mid-August).
On a non-GAAP basis, full-year gross margin has fallen from 45.4% in 2021 to 40.8% for 2022. Quarterly gross margin is down on 44.3% a year ago to 40.6% in Q4/2022. However, this is up from 38.4% last quarter, and exceeds the forecasted 40%.
Quarterly operating expenses have grown further, from $10.1m a year ago and $14.2m last quarter to $17m. This increased full-year OpEx from $35.3m in 2021 to $56.2m for 2022.
Quarterly net loss has risen further, from $7m a year ago and $9.5m last quarter to $9.7m in Q42022. Full-year net loss hence grew from $24.8m to $37.6m.
“2022 was a pivotal year for Navitas as we expanded beyond the mobile market into additional high-growth markets on a global scale,” says CEO & co-founder Gene Sheridan. “We completed three strategic transactions adding SiC, digital isolators [Belgium-based VDD Tech, acquired in last July] and Si analog controllers [Halo Microelectronics, acquired from a joint venture partner this January] to enable power management solutions across a broad range of next-generation, electrified applications,” he adds.
Customer/product highlights in 2022 are listed as:
- Electric vehicle:
- the firm’s SiC technology has been adopted by over a dozen road-side charger customers and is being integrated in more than 50% of the US roadside chargers including Electrify America and EVgo;
- SiC is in development or production for on-board chargers with major customers including General Motors, BYD and Mercedes AMG;
- a joint EV design center has been opened with Geely — a rising China-based EV player with almost 10% of worldwide EV sales in 2022.
- Solar/storage: SiC customers include AP Systems, Power Electronics, Chint, Growatt, Sungrow, and BYD with a total of over 20 major customers in production or development.
- Home appliance/industrial: over 45 customer projects in production or development.
- Data center: now 10 customer projects with all projects targeting production later this year or early 2024.
- Mobile: nearly 100 new GaN fast and ultra-fast charger designs (Samsung, OPPO, Lenovo, Dell, Anker and more), including OnePlus 10T 160W, the 210W GaNFast charger for Xiaomi’s Redmi Note 12 (100% charge in just 9 minutes), and Realme GT3 with 240W ultra-fast GaNFast charger.
- Major macro-economic growth drivers:
- the Inflation Reduction Act includes clean energy investments of over $60bn in home appliance energy-efficiency improvements, renewables and EV infrastructure to accelerate these Navitas target markets;
- the European Union’s ‘Titanium Plus’ standard took effect on 1 January, to drive data centers to higher efficiencies, increasing demand for GaN power ICs;
- secular global trends driving the transition of the silicon power semiconductor industry to GaN and SiC for sustainability, energy savings and electrification.
For first-quarter 2023, Navitas expects revenue to be roughly flat on a sequential basis but up 85% year-on-year. Gross margin is also expected to be relatively flat sequentially, but to expand incrementally throughout 2023. Operating expenses should be about $18m in Q1, then grow throughout the year, albeit declining as percentage of revenue while the business scales.
“In 2023, we are well positioned for strong growth in all of our target markets including EV, solar/storage, appliance/industrial and mobile/consumer,” reckons Sheridan.
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