納微半導體 (NVTS) 2023 Q2 法說會逐字稿

Good day, and thank you for joining Navitas Semiconductor Second Quarter 2023 Earnings Call. I'd like to turn the call over to Stephen Oliver. You may begin, sir.

美好的一天，感謝您參加納維半導體 2023 年第二季度財報電話會議。我想把電話轉給史蒂芬·奧利弗。您可以開始了，先生。

Good afternoon, everyone. I'm Stephen Oliver, Vice President of Corporate Marketing and Investor Relations. Thank you for joining Navitas Semiconductor's Second Quarter 2023 Results Conference Call.

大家下午好。我是斯蒂芬·奧利弗，企業營銷和投資者關係副總裁。感謝您參加納維半導體 2023 年第二季度業績電話會議。

I'm joined today by Gene Sheridan, our Chairman, President, CEO and Co-Founder; and Ron Shelton, our CFO and Treasurer. A replay of this webcast will be available on our website approximately one hour following this conference call, and the recorded webcast will be available for approximately 30 days following the call. Additional information related to our business is also posted on the Investor Relations section of our website.

今天，我們的董事長、總裁、首席執行官兼聯合創始人吉恩·謝里丹 (Gene Sheridan) 也加入了我的行列。以及我們的首席財務官兼財務主管 Ron Shelton。本次電話會議後大約一小時，我們的網站上將提供此網絡廣播的重播，並且錄製的網絡廣播將在電話會議後大約 30 天內提供。與我們業務相關的更多信息也發佈在我們網站的投資者關係部分。

Our earnings release includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our second quarter earnings release and also posted on our website in the Investor Relations section. In this conference call, we will make forward-looking statements about future events or about the future financial performance of Navitas, including acquisitions. You can identify these statements by words like we expect or we believe or similar terms. We wish to caution you that such forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from expectations expressed in our forward-looking statements.

我們的收益發布包括非公認會計準則財務指標。這些非公認會計原則財務指標與最直接可比的公認會計原則指標的對賬包含在我們第二季度的收益發布中，並發佈在我們網站的投資者關係部分。在本次電話會議中，我們將對未來事件或納維未來財務業績（包括收購）做出前瞻性陳述。您可以通過我們期望或我們相信的詞語或類似術語來識別這些陳述。我們希望提醒您，此類前瞻性陳述存在風險和不確定性，可能導致實際事件或結果與我們前瞻性陳述中表達的預期存在重大差異。

Important factors that can affect Navitas business including factors that could cause actual results to differ from our forward-looking statements are described in our earnings release. Please also refer to the Risk Factors sections in our most recent 10-K and 10-Qs. Our estimates or other forward-looking statements may change, and Navitas assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other events that may occur except as required by law.

我們的收益報告中描述了可能影響 Navitas 業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素。另請參閱我們最新的 10-K 和 10-Q 中的風險因素部分。我們的估計或其他前瞻性陳述可能會發生變化，除法律要求外，納維不承擔更新前瞻性陳述以反映實際結果、假設變更或可能發生的其他事件的義務。

And now over to Gene Sheridan, CEO.

現在請首席執行官吉恩·謝里丹 (Gene Sheridan) 發言。

Thanks a lot, Steve. In Q2, we saw continued growth in revenues and margins, along with significant customer pipeline progress across all market segments. Q2 revenue increased to $18.1 million, up 110% from the second quarter of 2022 and up 35% sequentially from the first quarter of 2023, and with gross margins climbing to 41.5%, up from 41.1% in Q1.

非常感謝，史蒂夫。在第二季度，我們看到收入和利潤持續增長，以及所有細分市場的客戶管道取得重大進展。第二季度收入增至 1810 萬美元，較 2022 年第二季度增長 110%，較 2023 年第一季度環比增長 35%，毛利率從第一季度的 41.1% 攀升至 41.5%。

Despite continued global softness in the broader consumer market and also some slowdown in the growth of the solar market, given a rise in interest rates, I am very pleased that we are delivering this robust growth across all markets and in particular, a nice rebound in the mobile market as GaN chargers reach cost parity with silicon chargers, enabling the launch of more mainstream models.

儘管全球更廣泛的消費市場持續疲軟，而且由於利率上升，太陽能市場的增長也有所放緩，但我很高興我們在所有市場上實現了強勁的增長，特別是在太陽能市場的強勁反彈。隨著GaN 充電器的成本與硅充電器達到同等水平，移動市場將推出更多主流型號。

With solid shipments in Q2 and continued momentum into Q3, we are excited to announce that as of today, we have shipped a cumulative 100 million GaN devices and over 12 million silicon carbide devices. In our electric vehicle business, we are seeing strong growth, particularly in both onboard chargers and roadside fast chargers. Recently, a consortium of seven global car manufacturers, including GM, BMW and Stellantis announced plans to install 30,000 fast chargers across North America. This translates to an additional opportunity of up to $100 million for our silicon carbide business in the next few years.

憑藉第二季度的穩定出貨量和第三季度的持續增長勢頭，我們很高興地宣布，截至今天，我們已累計出貨 1 億個 GaN 器件和超過 1,200 萬個碳化矽器件。在我們的電動汽車業務中，我們看到了強勁的增長，尤其是車載充電器和路邊快速充電器。最近，由通用汽車、寶馬和 Stellantis 等七家全球汽車製造商組成的財團宣布計劃在北美安裝 30,000 個快速充電器。這意味著我們的碳化矽業務在未來幾年將獲得高達 1 億美元的額外機會。

As a reminder, our silicon carbide technology is already used in over 50% of non-Tesla roadside chargers in the U.S. Overall, the opportunity in EV roadside chargers has a market potential of over $600 million per year by 2028. Based on recent developments in the generative AI market, power demands have been doubling every 3.4 months in AI and edge computing with the latest chips such as NVIDIA's GH200, consuming up to 1,000 watts just for a single GPU. When considering data centers may utilize many thousands of processors, this translates into a significant opportunity for our GaN power ICs as silicon-based designs struggle to meet these dramatic increases in the required power, efficiency and density. We recently announced a 3.2 kilowatt server power supply platform, which delivers an industry-leading 100 watts per cubic inch with over 96% energy efficiency to meet the challenging titanium plus efficiency standard as required by the European Union.

需要提醒的是，我們的碳化矽技術已用於美國 50% 以上的非特斯拉路邊充電器。總體而言，到 2028 年，電動汽車路邊充電器的市場潛力每年將超過 6 億美元。在生成式AI 市場中，使用NVIDIA GH200 等最新芯片的AI 和邊緣計算的功耗需求每3.4 個月就會翻一番，僅單個GPU 的功耗就高達1,000 瓦。當考慮到數據中心可能使用數千個處理器時，這對我們的 GaN 功率 IC 來說是一個重大機遇，因為基於矽的設計很難滿足所需功率、效率和密度的急劇增長。我們最近推出了 3.2 千瓦服務器電源平台，提供業界領先的每立方英寸 100 瓦功率和超過 96% 的能源效率，以滿足歐盟要求的具有挑戰性的鈦+效率標準。

This platform is enabling customers to rapidly develop these power supplies with our NICs and has already translated into a doubling of our customer data center pipeline as compared to Q1.

該平台使客戶能夠使用我們的 NIC 快速開發這些電源，並且與第一季度相比，我們的客戶數據中心管道數量已增加了一倍。

In the Appliance and Industrial segment, we are also seeing a doubling of our customer projects in our pipeline based on the growing need for high-efficiency electrified motor drive applications across home appliances, which includes dishwashers, dryers, refrigerators, washing machines, air conditioners, heat pumps along with hair care products. And also includes industrial applications, which utilize our silicon carbide technology for high-efficiency factory automation, robotics and HVAC systems.

在家電和工業領域，由於家用電器（包括洗碗機、烘乾機、冰箱、洗衣機、空調）對高效電氣電機驅動應用的需求不斷增長，我們的管道中的客戶項目也增加了一倍。 、熱泵以及護髮產品。還包括工業應用，利用我們的碳化矽技術實現高效工廠自動化、機器人和 HVAC 系統。

In solar, despite some market softness, we are experiencing a rapid increase in both the GaN and silicon carbide planned adoption into the solar inverters themselves, as well as a dramatic increase in the energy storage attach rates, which have more than doubled in recent years. One installer is reporting over 60% attach rates, adding battery backup to the solar panel installations, for residential Californian customers, and we anticipate such attach rates will approach 90% in coming years. Given these favorable dynamics, the revenue potential for each customer project has increased over 100% in our pipeline for the solar and energy storage segment.

在太陽能領域，儘管市場疲軟，但我們正在經歷太陽能逆變器本身計劃採用的 GaN 和碳化矽的快速增長，以及儲能附加率的大幅提高，近年來已增加了一倍多。一位安裝商報告稱，為加州住宅客戶的太陽能電池板安裝增加了備用電池，安裝率超過 60%，我們預計未來幾年這種安裝率將接近 90%。鑑於這些有利的動態，我們在太陽能和儲能領域的管道中每個客戶項目的收入潛力都增加了 100% 以上。

In the mobile market, despite the broader global consumer softness, we are experiencing significant growth, particularly in China and Korea. Major new charger developments by leading smartphone suppliers, including Xiaomi, Oppo, Samsung and a number of others are expanding GaN adoption from performance models to mainstream models, translating into a significant increase in both the number of customer projects in our pipeline and the total revenue potential of those projects.

在移動市場，儘管全球消費者普遍疲軟，但我們正在經歷顯著增長，特別是在中國和韓國。小米、Oppo、三星等領先智能手機供應商開發的主要新充電器正在將 GaN 的採用範圍從高性能型號擴大到主流型號，這意味著我們管道中的客戶項目數量和總收入均顯著增加這些項目的潛力。

Putting it all together, we're happy to announce a total customer pipeline increase from $760 million in Q1 to over $1 billion in Q2 with important growth in both customer projects and revenue potential across all of our target markets. I'm also very pleased with our progress in expanding manufacturing capacity for both gallium nitride and silicon carbide to ensure we can fully capitalize on this fast growth of our customer pipeline.

總而言之，我們很高興地宣布，客戶渠道總額從第一季度的 7.6 億美元增加到第二季度的 10 億美元以上，我們所有目標市場的客戶項目和收入潛力均顯著增長。我也對我們在擴大氮化鎵和碳化矽製造能力方面取得的進展感到非常高興，以確保我們能夠充分利用客戶管道的快速增長。

As previously announced, we are in the midst of ramping our silicon carbide capacity by 5x throughout this year and next as we continue to ship all the silicon carbide devices we can produce. In addition, we're on track with our announced $20 million investment for silicon carbide in-house epi, which will start with the first epi reactor installed in Q1 of next year.

正如之前宣布的那樣，我們將在今年和明年將我們的碳化矽產能提高 5 倍，同時我們將繼續運送我們可以生產的所有碳化矽器件。此外，我們宣布的碳化矽內部外延投資 2000 萬美元正按計劃進行，這將從明年第一季度安裝的第一個外延反應器開始。

In aggregate, over the next three years, this investment is expected to support epi capacity of $200 million per year in revenue, and it will provide appreciable cost reduction and margin expansion.

總的來說，在未來三年內，這項投資預計將支持每年 2 億美元的外延產能收入，並將顯著降低成本並擴大利潤。

Last year, working closely with our GaN fab partner, TSMC, we are benefiting from a 3x increase in capacity that ensures we have plenty of headroom to support our growth objectives in the next 2 to 3 years. With the benefits of a $92 million follow-on offering in May, we continue to have a very strong balance sheet that can enable additional strategic manufacturing investments to support even higher growth rates in a highly capital-efficient manner.

去年，通過與我們的 GaN 晶圓廠合作夥伴台積電 (TSMC) 密切合作，我們的產能增加了 3 倍，確保我們有足夠的空間來支持未來 2 到 3 年的增長目標。受益於 5 月份 9200 萬美元的後續發行，我們繼續擁有非常強大的資產負債表，可以進行額外的戰略製造投資，以高度資本效率的方式支持更高的增長率。

Today, we are also pleased to announce the first Navitas Investor Day to be held at our new global headquarters in Torrance, California on November 30. Investors and analysts are invited to participate in a comprehensive agenda that will include our new Electrify Experience Center that will detail the past, the present and an exciting vision for the future in the world of electrified power applications.

今天，我們還很高興地宣布，首屆Navitas 投資者日將於11 月30 日在我們位於加利福尼亞州托倫斯的新全球總部舉行。投資者和分析師受邀參加全面的議程，其中包括我們新的Electrify 體驗中心，該中心將詳細介紹了電力應用領域的過去、現在以及對未來的激動人心的願景。

This agenda will also include the announcement of four major new GaN or silicon carbide technology platforms, which we believe will transform many of our target markets. We will also provide a detailed review of our customer pipeline, showcased some exciting surprise guest speakers and provide a high-level view on our 2024 outlook.

該議程還將包括宣布四個主要的新型 GaN 或碳化矽技術平台，我們相信這些平台將改變我們的許多目標市場。我們還將詳細回顧我們的客戶渠道，展示一些令人興奮的驚喜演講嘉賓，並對我們的 2024 年展望提供高層次的看法。

In summary, I'm very pleased with our accelerating progress across financial results, customer pipeline, market adoption, technology development and manufacturing capacity expansion. We're excited about the significant opportunities in front of us, which are reflected in our results. Navitas is the only pure-play next-generation power semiconductor company and with our vision and our capability to electrify our world, we believe, will continue to be one of the fastest-growing semiconductor companies in the industry.

總之，我對我們在財務業績、客戶渠道、市場採用、技術開發和製造能力擴張方面的加速進展感到非常高興。我們對擺在我們面前的重大機遇感到興奮，這也反映在我們的業績中。 Navitas 是唯一一家純粹的下一代功率半導體公司，我們相信，憑藉我們讓世界電氣化的願景和能力，我們將繼續成為業內增長最快的半導體公司之一。

Now let me turn it over to our CFO, Ron Shelton, to update on those financial results as well as our guidance.

現在讓我將其轉交給我們的首席財務官 Ron Shelton，以更新這些財務業績以及我們的指導。

Thank you, Gene. In my comments today, I'll first take you through our second quarter results, and then I'll walk you through our outlook for the third quarter and some of the market dynamics we're seeing.

謝謝你，吉恩。在今天的評論中，我將首先向您介紹我們第二季度的業績，然後我將向您介紹我們對第三季度的展望以及我們所看到的一些市場動態。

Revenue in the second quarter of 2023 was well above our guidance, growing 110% year-over-year and 35% sequentially to $18.1 million. The beat was driven primarily by a strong growth in the mobile market, tempered somewhat by slower growth in the high-end consumer market attributable to macroeconomic factors. Nevertheless, we had record bookings during the quarter and exited the quarter with record levels of backlog, increasing by more than 50% compared to the first quarter. That's on top of a 50% increase that we experienced in Q1 so we continue to see strong momentum across the business.

2023 年第二季度的收入遠高於我們的指導，同比增長 110%，環比增長 35%，達到 1,810 萬美元。這一增長主要是由移動市場的強勁增長推動的，但由於宏觀經濟因素導致高端消費市場的增長放緩，從而有所緩和。儘管如此，我們在本季度的預訂量創下了紀錄，並以創紀錄的積壓水平結束了本季度，與第一季度相比增加了 50% 以上。這是我們在第一季度實現 50% 增長的基礎上，因此我們繼續看到整個業務的強勁勢頭。

Before adjusting expenses, I'd like to refer you to the GAAP to non-GAAP reconciliations in our press release earlier today. And the rest of my commentary, I'll be referring to the non-GAAP measures. Non-GAAP gross margin in the second quarter increased to 41.5% from 41.1% in the first quarter of 2023 and compared to 41.6% in the second quarter of 2022. Non-GAAP gross margins in the second quarter were at the higher end of our guidance. Total non-GAAP operating expenses were $17.0 million for the second quarter of 2023, which is slightly lower than the first quarter and below our guidance as we experienced lower audit-related fees and consumed fewer materials for research and development.

在調整費用之前，我想請您參閱今天早些時候新聞稿中的 GAAP 與非 GAAP 調節表。在我的評論的其餘部分，我將提及非公認會計原則措施。第二季度非 GAAP 毛利率從 2023 年第一季度的 41.1% 增至 41.5%，而 2022 年第二季度為 41.6%。第二季度非 GAAP 毛利率處於我們的較高水平。指導。 2023 年第二季度的非 GAAP 運營支出總額為 1700 萬美元，略低於第一季度，也低於我們的指導，因為我們的審計相關費用較低，研發材料消耗較少。

As we've mentioned in the past, we continue to invest in our business in a disciplined manner the results of which you have seen in the second quarter. Our non-GAAP SG&A expense was $7.2 million, and non-GAAP R&D was $9.8 million. Putting all of this together, the non-GAAP loss from operations was $9.6 million compared to a loss from operations of $8.9 million in the second quarter of 2022 as we continue to invest simultaneously across new markets and focus on growth opportunities. Our weighted average basic share count for the second quarter was 165.6 million shares.

正如我們過去提到的，我們繼續以嚴格的方式投資我們的業務，您在第二季度已經看到了結果。我們的非 GAAP SG&A 費用為 720 萬美元，非 GAAP 研發費用為 980 萬美元。將所有這些加在一起，由於我們繼續在新市場上同時投資並專注於增長機會，非 GAAP 運營虧損為 960 萬美元，而 2022 年第二季度運營虧損為 890 萬美元。我們第二季度的加權平均基本股數量為 1.656 億股。

Turning to the balance sheet, it remains very strong with high levels of liquidity and continued improvements in working capital. Cash and cash equivalents at quarter end were $177.7 million and we continue to carry no debt. As part of our successful public offering in the second quarter, we issued 11.5 million shares for net proceeds of $86.5 million. Leveraging those proceeds, we announced the first in a series of strategic manufacturing investments to increase control over our supply chain, reduce costs, expand margins and enhance our capacity to meet the needs of our growing backlog and pipeline. The first $20 million investment enables the silicon carbide epi facility at our Torrance headquarters. This facility enables epi capacity that can support over $200 million in annual revenue, while making a meaningful contribution to improved gross margins. Accounts receivable were $15.2 million compared to $7.4 million in the prior quarter, reflecting higher sales during the quarter was weighted towards the last month of the quarter.

談到資產負債表，它仍然非常強勁，流動性水平很高，營運資本持續改善。季度末現金和現金等價物為 1.777 億美元，我們仍然沒有債務。作為第二季度成功公開發行的一部分，我們發行了 1,150 萬股股票，淨收益為 8,650 萬美元。利用這些收益，我們宣布了一系列戰略製造投資中的第一項，以加強對供應鏈的控制，降低成本，擴大利潤並增強我們的能力，以滿足不斷增長的積壓和管道的需求。首筆 2000 萬美元投資啟用了我們托倫斯總部的碳化矽外延設施。該設施使外延產能能夠支持超過 2 億美元的年收入，同時為提高毛利率做出有意義的貢獻。應收賬款為 1,520 萬美元，而上一季度為 740 萬美元，反映出本季度最後一個月的銷售額增加。

Inventory was flat at $18.9 million, and days of inventory improves nicely as we continue to drive inventory levels to more closely align with the business going forward. Over time, we believe our inventory levels will trend towards our long-term target for inventory turns better than 3 times.

庫存持平於 1,890 萬美元，隨著我們繼續提高庫存水平以與未來的業務更加緊密地配合，庫存天數也得到了很好的改善。隨著時間的推移，我們相信我們的庫存水平將朝著庫存周轉率超過 3 倍的長期目標發展。

Moving on to guidance. For the third quarter, we currently expect revenues of $21 million, plus or minus 2%. At the midpoint, this represents substantial year-over-year growth of approximately 105% over the $10.2 million we recorded in the end of third quarter of 2022 and an expected 16% sequential increase over the second quarter of 2023. Our guidance is based on an increasing supply of silicon carbide products and the expected continued recovery in the mobile market.

繼續指導。我們目前預計第三季度收入為 2100 萬美元，上下浮動 2%。中點來看，這意味著比我們在 2022 年第三季度末記錄的 1020 萬美元大幅同比增長約 105%，預計比 2023 年第二季度環比增長 16%。我們的指導基於碳化矽產品供應量不斷增加以及移動市場的持續復甦預期。

Throughout the year, we've indicated that our goal was to double revenue this year. Our recent performance adds to our confidence, and we remain comfortable with that guidance. Gross margins for the third quarter are expected to be relatively flat compared to the second quarter given the upside in the mobile business, which will also translate into a moderation in our gross margin expansion in the short term.

在這一年中，我們一直表示我們的目標是今年收入翻一番。我們最近的表現增強了我們的信心，我們對這一指導仍然感到滿意。鑑於移動業務的增長，預計第三季度的毛利率將與第二季度相對持平，這也將導致我們短期內毛利率擴張放緩。

In total, our non-GAAP operating expenses in the third quarter are expected to be approximately $18.5 million to $19.5 million. And this excludes stock-based compensation and amortization of intangible assets. We will continue investing in growth, but expenses will generally decline as a percentage of revenue as we continue to scale.

總的來說，我們第三季度的非公認會計準則運營費用預計約為 1850 萬美元至 1950 萬美元。這不包括基於股票的補償和無形資產攤銷。我們將繼續投資於增長，但隨著我們繼續擴大規模，費用佔收入的比例通常會下降。

For the third quarter of 2023, we expect our weighted average basic share count to be approximately 175 million shares.

2023 年第三季度，我們預計加權平均基本股數量約為 1.75 億股。

In closing, we're extremely pleased with the results for the quarter and our near-term and long-term outlook. We saw strength in the mobile market, where we are the leading supplier of GaN ICs. We ended the quarter with record backlog, our customer pipeline has grown to an unprecedented level, and we ended the quarter with nearly $180 million of cash and no debt.

最後，我們對本季度的業績以及我們的近期和長期前景感到非常滿意。我們看到了移動市場的優勢，我們是該市場領先的 GaN IC 供應商。本季度結束時，我們的積壓創歷史新高，我們的客戶渠道增長到了前所未有的水平，本季度結束時，我們擁有近 1.8 億美元的現金，沒有債務。

Operator, let's begin the Q&A session.

接線員，我們開始問答環節。

(Operator Instructions) The first question comes from the line of Quinn Bolton from Needham & Company.

（操作員說明） 第一個問題來自 Needham & Company 的 Quinn Bolton。

I hate to focus on a negative, but gross margin sounds mostly due to mix, but coming in perhaps a little bit lower than you thought previously. Can you give -- just spend a minute just sort of talking about how you see the mix between mobile, consumer data center and some of the higher-margin silicon carbide markets as you look into the second half? Ron, when do you think you might be able to get margins into the kind of mid-40 range, which I think was your prior target by year end of '23?

我討厭關注負面因素，但毛利率聽起來主要是由於混合造成的，但可能比你之前想像的要低一點。您能否花一點時間談談您在展望下半年時如何看待移動、消費者數據中心和一些利潤率較高的碳化矽市場之間的組合？ Ron，你認為什麼時候你的利潤率能夠達到 40 左右的範圍，我認為這是你在 23 年底之前的目標？

Quinn, thanks for the question. Yes. So fundamentally, the business is very strong right now. And we talked about pipeline, it's over $1 billion and backlog was up more than 50%. And the good news is, I think mobile markets strong. It seems to be recovering, we have a great position in it and the other end markets in terms of pipeline revenue and backlog continue to grow.

奎因，謝謝你的提問。是的。所以從根本上來說，目前的業務非常強勁。我們談到了管道，它超過 10 億美元，積壓訂單增加了 50% 以上。好消息是，我認為移動市場很強勁。它似乎正在復蘇，我們在其中佔據著重要地位，而其他終端市場的管道收入和積壓訂單也在繼續增長。

So what we've indicated in our comments is just based on mix, we see a little bit of a moderation in the growth of gross margins. But we seem to be -- not seem to be, we are executing in all areas to drive margins. So when we talked earlier this year about what would drive margins, talked about transition to Gen 4, that's happening right now. We talked about diversifying end markets. If you looked at our pipeline, it's not only growing, but that's happening. And those generally have higher margins.

因此，我們在評論中指出的只是基於組合，我們看到毛利率的增長略有放緩。但我們似乎——似乎不是，我們正在所有領域執行以提高利潤率。因此，當我們今年早些時候談論什麼會提高利潤率時，談論向第四代的過渡時，這一切現在正在發生。我們談到了終端市場的多元化。如果您查看我們的管道，您會發現它不僅在增長，而且正在發生。這些通常有更高的利潤。

And then costs, we're driving costs. We talked about strategic manufacturing that we're putting in place. The first step is the epi facility. So we're executing in all those areas, I think it's just a bit of a -- not even a pause. I think it's just a moderation in terms of how quickly margins would grow, and we'll be back on track. I would look at it, and I think we look at maybe a couple of quarter slowdown in terms of the rate of growth and margins, but there's no fundamental shift here in terms of our margin profile.

然後是成本，我們正在推動成本。我們討論了我們正在實施的戰略製造。第一步是外延設施。所以我們正在所有這些領域執行，我認為這只是一點點——甚至不是暫停。我認為這只是利潤增長速度的緩和，我們將回到正軌。我會看一下，我認為我們的增長率和利潤率可能會出現幾個季度的放緩，但我們的利潤率狀況沒有發生根本性的變化。

Ron, maybe a sort of a follow-up on that question. Is the sort of gross margin sort of pause really just driven by stronger than expected growth or stronger than expected recovery in the mobile charger market, which I know is the lower margin part of your GaN business? Or have -- and I guess a perhaps slowdown in the higher-end consumer appliance market, which I think you referenced on the call. Or is the gross margin pause? I guess are you seeing any pause or not slowdown but maybe just the delay in the silicon carbide side of the business that's accounting for the mix? Or is the margin really affect that the mobile charger markets coming back perhaps stronger than you thought earlier in the year and that mix shift is just a mobile charger is really what's behind the kind of the flattening in the third quarter?

羅恩，也許是這個問題的後續。這種毛利率的暫停真的只是由移動充電器市場強於預期的增長或強於預期的複蘇推動的嗎？我知道這是你們的 GaN 業務中利潤率較低的部分？或者有——我想高端消費電器市場可能會放緩，我想你在電話會議中提到了這一點。還是毛利率暫停了？我想您是否看到任何暫停或沒有放緩，但也許只是碳化矽業務方面的延遲造成了混合？或者，移動充電器市場的回升可能比您今年早些時候想像的更強勁，而移動充電器的混合變化是否真正影響了利潤率，而移動充電器才是第三季度趨於平緩的真正原因？

Yes. It's nothing more than that, right? So this is really a product mix issue. It says nothing about the strength in silicon carbide. Again, I think it's -- silicon carbide is the kind of business where supply is catching up, but we're still having -- we're a little bit supply-challenged and we ship everything we can make right now. So it's a bit of a mix issue. And again, I suppose I wouldn't characterize it as a pause. I mean I think it's just a slowdown in the rate of growth in gross margins and the expansion of margins. And like I said, I think it's a couple of quarters slowdown and our moderation. But there's nothing we're doing from an execution standpoint -- I think we're doing everything we should be doing to drive margin expansion going forward.

是的。僅此而已，對吧？所以這實際上是一個產品組合問題。它沒有提及碳化矽的強度。再說一次，我認為碳化矽是一種供應正在趕上的業務，但我們仍然面臨著供應方面的挑戰，我們現在運送我們能生產的所有東西。所以這是一個混合問題。再說一次，我想我不會將其描述為停頓。我的意思是，我認為這只是毛利率增長率和利潤率擴張的放緩。正如我所說，我認為這是幾個季度的放緩和我們的放緩。但從執行的角度來看，我們什麼也沒做——我認為我們正在做我們應該做的一切來推動利潤率的擴張。

Got it. And maybe if I could just slip in one quick one, just on the data center business. You announced the new 3.3-kilowatt platform. Is that data center business now starting to ramp to production here in the second half of '23? Are you starting to see revenues from the data center power supply market this year?

知道了。也許我可以簡單介紹一下數據中心業務。你們發布了新的 3.3 千瓦平台。數據中心業務現在是否開始在 23 年下半年開始投產？您今年開始看到數據中心電源市場的收入了嗎？

Yes. We actually -- the revenue start in Q4. Most of that ramp is next year. We're just releasing the high-power GaN ICs targeted for data centers to production later this quarter and then the customer revenue starting next quarter.

是的。實際上，我們的收入從第四季度開始。大部分增長將在明年進行。我們剛剛發布了針對數據中心的高功率 GaN IC，該 IC 將在本季度晚些時候投入生產，然後從下個季度開始為客戶帶來收入。

Your next question comes from the line of Ross Seymore from Deutsche Bank.

您的下一個問題來自德意志銀行的 Ross Seymore。

This is Melissa Weathers on for Ross. Could you give us a high-level summary on where you believe industry inventory levels are today by end market and maybe particularly in the appliances and industrial end market? And how do you guys see that inventory situation impacting your pace of market share gains and penetration of new markets in the medium term?

我是梅麗莎·韋瑟斯（Melissa Weathers）為羅斯代言。您能否給我們一個高級總結，說明您認為目前終端市場（尤其是家電和工業終端市場）的行業庫存水平？你們如何看待中期庫存狀況對你們市場份額增長和新市場滲透速度的影響？

Sure. Thanks, Melissa. Yes, the industry levels from our view, are pretty much in line with what we would expect in the channel. We don't report specific channel inventory, but we did see certainly a buildup in the mobile and consumer space last year.

當然。謝謝，梅麗莎。是的，從我們的角度來看，行業水平與我們對渠道的預期非常一致。我們沒有報告具體的渠道庫存，但去年我們確實看到移動和消費者領域的庫存有所增加。

As reported in Q1, we saw an unexpected upside in mobile, we couldn't actually deliver, which reflected a lot of those inventory levels being depleted and now we're shipping apart from inventory and apart from brand new builds. So I'd just highlight that particular market where we've seen a nice reduction in channel inventory, a nice pickup in demand. But I think from the broader markets, we see things pretty balanced and reasonable. If anything, as Ron highlighted, silicon carbide, we're shipping everything we can build, so we have pretty limited inventory both at Navitas and in the channel.

正如第一季度所報導的那樣，我們看到移動設備出現了意想不到的增長，但我們實際上無法交付，這反映出很多庫存水平已經耗盡，現在我們除了庫存和全新的構建之外還在發貨。因此，我只想強調那個特定市場，我們看到渠道庫存大幅減少，需求大幅回升。但我認為從更廣泛的市場來看，我們認為事情相當平衡和合理。如果有的話，正如羅恩強調的那樣，碳化矽，我們正在運輸我們可以製造的所有東西，所以我們在納維和渠道中的庫存都非常有限。

Okay. Great. And then kind of building off of that, for your September quarter guide, you guided to mid-teens sequential revenue growth. Can you talk about what you're expecting by end market? And how much of that should be driven by the mobile kind of refill or recovery there versus your other end markets?

好的。偉大的。然後在此基礎上，在您的 9 月份季度指南中，您實現了十幾歲左右的連續收入增長。您能談談您對終端市場的期望嗎？與其他終端市場相比，其中有多少應該由移動類型的補充或恢復驅動？

Yes, it's pretty broad-based, actually. Mobile -- certainly, the mobile growth continues into Q3. That's seasonally a pretty strong quarter. We see that even into Q4 but we really see good stability and growth in the other markets. The one exception being data center where we're not shipping yet. But as we commented earlier, those data center shipments start in Q4 and then grow strongly throughout next year.

是的，實際上它的基礎非常廣泛。移動——當然，移動增長持續到第三季度。從季節性角度來看，這是一個相當強勁的季度。我們甚至在第四季度就看到了這一點，但我們確實看到其他市場良好的穩定性和增長。唯一的例外是我們尚未發貨的數據中心。但正如我們之前評論的那樣，這些數據中心的出貨量從第四季度開始，然後在明年強勁增長。

Your next question comes from the line of Kevin Cassidy from Rosenblatt.

您的下一個問題來自羅森布拉特的凱文·卡西迪。

I wonder if you could give us a little more details around the industrial and even appliance market, the right goods. If that's just starting to ramp and what areas, what geographies are they ramping in if you can give us an idea of the average dollar content you'd have?

我想知道您是否能為我們提供有關工業甚至家電市場以及合適商品的更多詳細信息。如果這種情況才剛剛開始增加，以及它們正在哪些地區、哪些地區增加，您能否讓我們了解您所擁有的平均美元含量？

Yes, great questions, Kevin. Thanks for that. It's pretty broad based. I listed a number of the applications from the home appliances, washers, dryers, refrigerators, air conditioners, HVAC. We're particularly excited about fuel pumps, which are fundamentally moving from fossil fuels to more electrified electricity and clean energy semiconductors like gallium nitrate or silicon carbide.

是的，很好的問題，凱文。感謝那。它的基礎相當廣泛。我列出了一些來自家用電器、洗衣機、烘乾機、冰箱、空調、暖通空調的應用。我們對燃油泵感到特別興奮，它從根本上從化石燃料轉向更多的電氣化電力和清潔能源半導體，如硝酸鎵或碳化矽。

As you look at the Industrial segment, that tends to be more about automation, HVAC using silicon carbide technology. So very broad-based across both gallium nitride and silicon carbide across lots of different applications. And even regions, we've talked about it before. Europe is really the starting point for us. There's a big focus and a big strength in Europe in these segments, but we're now seeing that picking up into more customer projects and revenue opportunities across Asia and across U.S., we highlighted the fact that the number of customer projects has more than doubled just in a quarter. Most of those are ramping, some are ramping in '24, many more ramping at '25. So it's not the fastest-growing segment, but brings great stability and certainly a lot of growth in conversion from silicon to gallium nitride or silicon carbide over the next couple of years.

當你觀察工業領域時，你會發現這往往更多地涉及自動化、使用碳化矽技術的暖通空調。氮化鎵和碳化矽在許多不同的應用中具有非常廣泛的基礎。甚至地區，我們之前已經討論過。歐洲確實是我們的起點。歐洲在這些領域有很大的關注點和強大的優勢，但我們現在看到亞洲和美國越來越多的客戶項目和收入機會，我們強調了這樣一個事實，即客戶項目的數量增加了一倍多就在四分之一的時間裡。其中大多數正在增加，有些是在 24 年增加的，更多是在 25 年增加的。因此，它不是增長最快的細分市場，但帶來了極大的穩定性，並且在未來幾年內從矽到氮化鎵或碳化矽的轉換肯定會大幅增長。

And on the gallium nitride Gen 4, can you say is that tracking as expected? And which end markets do you think will adopt it faster?

在第四代氮化鎵上，您能說跟踪效果符合預期嗎？您認為哪些終端市場會更快地採用它？

Yes. No, great question. Generation 4 is our next major platform. We launched it late last year. This year is expected to be a big transition from Generation 3 to Gen 4 and that's exactly what's happening. It's actually being adopted by all of our gallium nitride markets, even customers in production are switching over from Gen 3 to Gen 4, getting performance advantages, cost reductions and margin enhancement for us. All of the high-power GaN chips that I mentioned that we're launching into data center, solar, EV and other markets are also launching directly into Gen 4. So we actually expect virtually all of our shipments will have transitioned to Gen 4 by the end of the year or Q1 at the latest.

是的。不，很好的問題。第四代是我們的下一個主要平台。我們去年年底推出了它。今年預計將是從第三代到第四代的重大轉變，而這正是正在發生的事情。實際上，我們所有的氮化鎵市場都在採用它，甚至生產中的客戶也從第 3 代轉向第 4 代，為我們帶來了性能優勢、成本降低和利潤率提高。我提到的我們正在向數據中心、太陽能、電動汽車和其他市場推出的所有高功率GaN 芯片也將直接推出到第4 代。因此，我們實際上預計幾乎所有出貨量都將在2017 年過渡到第4 代。最遲在今年年底或第一季度。

Your next question comes from the line of Blake Friedman from Bank of America.

您的下一個問題來自美國銀行的布萊克·弗里德曼（Blake Friedman）。

I just wanted to focus on the mobile market. You've highlighted strong traction with OEMs in Korea and China. I was just hoping anything you can comment on developments or relationships with North American OEMs would be helpful.

我只是想專注於移動市場。您強調了韓國和中國原始設備製造商的強大吸引力。我只是希望您對北美原始設備製造商的發展或關係發表的任何評論都會有所幫助。

Yes you bet. Thanks, Blake. We're seeing pretty broad-based adoption. We highlighted the fact that this year, and we predicted this for the last couple of years, this is a big year for gallium nitride to achieve system cost parity, with silicon-based power systems. That's true for many of the charger markets, and it's true of many of the others. In particular, what we're seeing is a transition from the high-end flagship or performance-based mobile charger models to more mainstream models.

是的，你打賭。謝謝，布萊克。我們看到了相當廣泛的採用。我們強調了這樣一個事實，即我們在過去幾年中預測這一點，今年是氮化鎵與硅基電力系統實現系統成本平價的重要一年。對於許多充電器市場來說都是如此，對於其他許多市場來說也是如此。特別是，我們看到的是從高端旗艦或基於性能的移動充電器型號向更主流型號的轉變。

In particular, we highlighted China and Korea with companies like Xiaomi, Oppo and Samsung because these are a few that we can publicly talk about. That's not to say we aren't seeing similar transitions and successes in North America and around the world, but in some cases, some customers are more sensitive to disclosing those public names, so we tend to shy away from them. So it is broader based than we spoke about and announced for the reasons I described, and we're also looking for a lot more details on the customer profile, the specific products and the major product launches at our Investor Day in late November. So more details will be coming.

我們特別強調了中國和韓國的小米、Oppo 和三星等公司，因為這些是我們可以公開談論的公司。這並不是說我們在北美和世界各地沒有看到類似的轉變和成功，但在某些情況下，一些客戶對披露這些公共名稱更為敏感，因此我們傾向於迴避它們。因此，由於我所描述的原因，它的基礎比我們所談論和宣布的更廣泛，而且我們還在 11 月底的投資者日上尋找有關客戶概況、特定產品和主要產品發布的更多詳細信息。所以更多細節將會到來。

Great. And then just as a quick follow-up, following the capital raise that occurred in the (inaudible) quarter. Just curious about your thoughts on cash position...

偉大的。然後，作為快速跟進，在（聽不清）季度發生的融資之後。只是好奇你對現金狀況的看法......

You broke up a bit. Could you repeat the last part? Capital raise...

你們分手了一點。你能重複一下最後一部分嗎？籌集資金...

Yes. I was just curious about thoughts on your cash position following the capital raise and thoughts about raising capital in the future.

是的。我只是好奇您對融資後現金狀況的想法以及對未來融資的想法。

Yes Blake, it's Ron. In a nutshell, we feel really good about the balance sheet and our cash position. I think the equity raise, as we've indicated, whereas for targeted reasons, strategic manufacturing being one. I think going forward, when you think about us and our capital needs and planning, what I would say right now is, to the extent we raised capital going forward, it would be for strategic reasons.

是的，布萊克，是羅恩。簡而言之，我們對資產負債表和現金狀況感覺非常好。我認為，正如我們所指出的，股權融資是出於有針對性的原因，戰略製造就是其中之一。我認為展望未來，當你考慮我們以及我們的資本需求和規劃時，我現在想說的是，就我們未來籌集資金的程度而言，這將是出於戰略原因。

We've been active in M&A in the past or additional strategic manufacturing, but it would be strategic and accretive. But in terms of the business and ongoing operations, we don't see a need right now to raise more capital.

我們過去一直積極參與併購或額外的戰略製造，但這將是戰略性的和增值的。但就業務和持續運營而言，我們認為目前沒有必要籌集更多資金。

Your next question comes from the line of Jack Egan from Charter Equity Research.

您的下一個問題來自 Charter Equity Research 的 Jack Egan。

I had a few on silicon carbide. So recently, there's been a bit of talk about falling prices for silicon carbide wafers and just more suppliers entering the market. So I was curious, what are you guys seeing just in terms of wafer pricing or the broader supply landscape right now?

我有一些碳化矽。最近，有一些關於碳化矽晶圓價格下降以及更多供應商進入市場的討論。所以我很好奇，你們現在在晶圓定價或更廣泛的供應格局方面看到了什麼？

Thanks, Jack. I think in general, silicon carbide supply chains are still reasonably tight as we mentioned and highlighted we're shipping everything we can build. We're in the midst of a pretty significant ramp-up with X-FAB. We signed a 500% increase in capacity with X-FAB that includes materials. So substrates or bare wafers, as you alluded to as well as the epi wafers, and we're going to be adding our own in-house epi wafers next year, as Ron described in the call.

謝謝，傑克。我認為總的來說，正如我們提到並強調的那樣，碳化矽供應鏈仍然相當緊張，我們正在運輸我們可以製造的所有東西。我們正處於 X-FAB 的顯著提升階段。我們與 X-FAB 簽署了產能增加 500% 的協議，其中包括材料。因此，正如您提到的基板或裸晶圓以及外延晶圓，我們將在明年添加我們自己的內部外延晶圓，正如羅恩在電話中所述。

With all of that said, I do think it's improving. I think we're seeing pockets of improved material availability. I think that's true with the bare wafers or substrates as we call them, as you said. And I think we're seeing prices start to come down. I wouldn't call it very dramatic at this point. And there are new suppliers coming on board, but quality yield, the ability to use those for higher-performance MOSFETs, all has to be evaluated.

綜上所述，我確實認為情況正在改善。我認為我們看到材料可用性有所改善。正如您所說，我認為對於我們所說的裸晶圓或基板來說，情況確實如此。我認為我們看到價格開始下降。在這一點上我不會說這是非常戲劇性的。還有新的供應商加入，但質量良率以及將這些供應商用於更高性能 MOSFET 的能力，所有這些都必須進行評估。

So I think these things take time, but I think the trends are favorable in terms of getting a more balanced demand and supply for the industry over the next year or two.

因此，我認為這些事情需要時間，但我認為，就未來一兩年行業的供需更加平衡而言，趨勢是有利的。

Sure. Okay. That's helpful. And then on the device side, so your devices can be above 50% gross margin, which is a bit higher than what some of the large device manufacturers are at right now. And so how much of that is due to Navitas just being fabless and having a lower fixed cost base versus other factors like end market or product mix?

當然。好的。這很有幫助。然後在設備方面，這樣你的設備毛利率可以超過50%，這比一些大型設備製造商現在的毛利率要高一些。那麼，其中有多少是由於 Navitas 的無晶圓廠以及與終端市場或產品組合等其他因素相比具有較低的固定成本基礎？

It's hard to say. Obviously, we don't have the benefit of knowing cost structures of other suppliers. Many don't break out their detailed silicon carbide business, let alone gross margins and cost structure. So I think we feel good about our cost structure. We benefit from our technology being very robust as a trench assisted planar silicon carbide technology that can mix and match with different substrates, different epi vendors. So I think that gives us more flexibility, especially as prices come down, as we talked about on the substrates and maybe on the Epi and using our own in-house epi.

很難說。顯然，我們無法從了解其他供應商的成本結構中獲益。許多公司都沒有詳細介紹其碳化矽業務，更不用說毛利率和成本結構了。所以我認為我們對我們的成本結構感覺良好。我們受益於我們的技術非常強大，作為溝槽輔助平面碳化矽技術，可以與不同的襯底、不同的外延供應商混合和匹配。因此，我認為這給了我們更大的靈活性，特別是當價格下降時，正如我們在基板上以及可能在外延上以及使用我們自己的內部外延上所討論的那樣。

So I think all of that gives us a pretty good cost structure. But actually, I think the main reason we might be doing better on margins than others is because of the performance of the technology. We have the best high-performance in-circuit test results of anybody. We did heavy benchmark testing a year ago before we bought GeneSiC. We also have the most robust avalanche rated 100% avalanche tested to the highest values in the industry. And we also offer the widest voltage range from 650 volts to 6,500 volts. In that upper voltage range, there's very, very few competitors that can technically do that and allows our customers to use fewer high-voltage chips in place of multiple stacked lower voltage chips, making their systems more cost effective but also giving us higher gross margins. So I think it's more about the performance and capability of the technology that's translating into maybe above average gross margins in the industry.

所以我認為所有這些都為我們提供了一個非常好的成本結構。但實際上，我認為我們的利潤率可能比其他公司做得更好的主要原因是技術的性能。我們擁有最好的高性能在線測試結果。一年前，我們在購買 GeneSiC 之前進行了大量的基準測試。我們還擁有最強大的雪崩額定值，經過 100% 雪崩測試，達到業內最高值。我們還提供從 650 伏到 6,500 伏的最寬電壓範圍。在較高電壓範圍內，很少有競爭對手能夠在技術上做到這一點，並允許我們的客戶使用更少的高壓芯片來代替多個堆疊的低壓芯片，從而使他們的系統更具成本效益，同時也為我們帶來更高的毛利率。因此，我認為更多的是技術的性能和能力，這可能會轉化為高於行業平均水平的毛利率。

Your next question comes from the line of Natalia Winkler from Jefferies.

您的下一個問題來自 Jefferies 的 Natalia Winkler。

Gene, I wanted to ask about the in-house epi capabilities you guys are going to be investing in. Could you please speak a bit more about how you view them? Is that going to be a cost improvement and to extent you have a time horizon that we should think about that project going forward?

Gene，我想問一下你們將要投資的內部外延能力。您能多談談您如何看待它們嗎？這是否會帶來成本改善，並且在某種程度上，我們應該考慮該項目的未來發展？

Yes, definitely. Thanks, Natalia. So it's a $20 million investment over a 3-year period. The first phase is the first epi reactor. It's on order to be received late this year, early next year, and we expect it to be fully operational and contributing to revenue by middle of next year. I said that first half of next year.

當然是。謝謝，娜塔莉亞。因此，這是一項為期 3 年、投資 2000 萬美元的投資。第一階段是第一個外延反應器。它預計將於今年年底、明年初收到，我們預計它將在明年年中全面投入運營並貢獻收入。我說的是明年上半年。

It will both give us incremental capacity that's very important as the market is still tight but it also will give us incremental cost reduction, which can allow us to be more aggressive on price and drive even more top line, but also put some of that cost reduction into enhanced gross margin throughout next year, which Ron alluded to earlier,

它既會給我們帶來增量產能，這非常重要，因為市場仍然緊張，但它也會給我們帶來增量成本降低，這可以讓我們在價格上更加積極，並推動更多的收入，但也會投入一些成本羅恩早些時候提到過，明年全年毛利率會降低，

I did say 3 years, so we expect additional reactors to be involved in years 2 and years 3, we'll be placing those orders as we see the demand and time it to fit that demand profile and will continue even once it's online, to use a blend of outsourced epi as well as in-sourced epi to maximize kind of the cost and capacity profile.

我確實說過 3 年，所以我們預計在第 2 年和第 3 年將涉及更多反應堆，我們將在看到需求時下這些訂單，並安排時間以滿足需求概況，並且即使上線後也會繼續，混合使用外包外延和內購外延，以最大限度地提高成本和產能。

Understood. That's very helpful. And then the second question I had was on the data center. Gene, could you please explain how should we think about the GaN and silicon carbide applications in data center? It sounds like, I think historically, we always thought about GaN kind of being the first to be designed into those markets. But I believe you just mentioned silicon carbide as well. So could you please speak about those -- the different type of program you have in that end market?

明白了。這非常有幫助。我的第二個問題是關於數據中心的。 Gene，您能否解釋一下我們應該如何看待 GaN 和碳化矽在數據中心的應用？我認為從歷史上看，我們一直認為 GaN 是第一個被設計進入這些市場的產品。但我相信您剛才也提到了碳化矽。那麼您能否談談您在終端市場上擁有的不同類型的計劃？

Yes, it's a great question. Obviously, it's a very, very dynamic one with generative AI fundamentally changing the processors that will be used in the future, the power profile, the efficiency demand.

是的，這是一個很好的問題。顯然，這是一個非常非常動態的過程，生成式人工智能從根本上改變了未來使用的處理器、功率分佈和效率需求。

So it's pretty exciting, it's also the newest because we're not shipping into it yet. But our data center is already bringing out system-level design centers as we highlighted, one of them, the 3.2 kilowatt just announced. That particular one uses all GaN ICs inside, but we do continue to do advanced system R&D work, looking at the combination actually of silicon carbide compared to GaN or in combination with GaN. So I don't want to preannounce something, but that's one of the benefits of Navitas is the only pure play next-gen power semiconductor guy. We have a world's leading GaN, world-leading silicon carbide in a very objective way, we can evaluate what's going to be best for the system, depending upon customer priorities around efficiency, density, power delivery, cost, reliability, et cetera. So I think there is a potential for silicon carbide to be used in combination with GaN, but we definitely see data center being heavily a GaN IC market, and we expect you'll see that as we announce more products and ramp that revenue starting next quarter.

所以這非常令人興奮，它也是最新的，因為我們還沒有發貨。但正如我們所強調的那樣，我們的數據中心已經推出了系統級設計中心，其中之一就是剛剛宣布的 3.2 千瓦。該特定產品內部使用了所有 GaN IC，但我們確實繼續進行先進的系統研發工作，研究碳化矽與 GaN 的實際組合或與 GaN 的組合。所以我不想預先宣布什麼，但這就是 Navitas 的好處之一，它是唯一一家專注於下一代功率半導體的公司。我們以非常客觀的方式擁有世界領先的 GaN、世界領先的碳化矽，我們可以根據客戶對效率、密度、功率傳輸、成本、可靠性等的優先考慮來評估什麼對系統最有利。 So I think there is a potential for silicon carbide to be used in combination with GaN, but we definitely see data center being heavily a GaN IC market, and we expect you'll see that as we announce more products and ramp that revenue starting next四分之一.

(Operator Instructions) Your next question comes from the line of Jon Tanwanteng from CJS Securities.

（操作員指令）您的下一個問題來自CJS證券的Jon Tanwanteng。

My first one, just going back to the gross margins. I was wondering, Ron, how should we think of margins exiting '23 or exiting Q1 of next year just based on the mixed forecast and the adoption of next-gen products and when you look further out with the addition of the Epi equipment, is your target margin changing there? And when should we expect that to be incremental to I guess, the margin versus if you didn't have that equipment at all?

我的第一個問題是回到毛利率。我想知道，羅恩，僅根據混合預測和下一代產品的採用，我們應該如何考慮退出 23 或退出明年第一季度的利潤，當您進一步考慮添加 Epi 設備時，是你的目標利潤有變化嗎？我猜，與根本沒有該設備相比，我們什麼時候應該期望利潤會增加？

Yes. Good question. Thanks, Jon. So getting back to the near term, as we indicated in the comments, we talked about a short-term moderation in the growth of margins. So I think that gives you some indication that we expect them to grow off Q3, just not at the rate of our previous guidance, which was mid-40s.

是的。好問題。謝謝，喬恩。因此，回到近期，正如我們在評論中指出的那樣，我們談到了利潤率增長的短期放緩。因此，我認為這給了你一些跡象，表明我們預計它們將從第三季度開始增長，只是不會按照我們之前指導的 40 年代中期的速度增長。

I think over time, again, it looks to us like a couple of quarter push out effectively from what we had previously indicated on margin growth. So we feel very good about the margin growth. We feel very good about the margin profile. It's just that in the very short term here, we had this positive moderation in our margin growth.

我認為，隨著時間的推移，在我們看來，幾個季度的利潤率增長將有效地超出我們之前所指出的水平。因此，我們對利潤增長感到非常滿意。我們對利潤狀況感覺非常好。只是在很短的時間內，我們的利潤增長出現了積極的放緩。

With respect to the Epi, as Gene said, I'll just echo Gene's comments, part of the benefit of Epi is lower cost. But again, I think we're -- we don't want to get that granular. I think the way to look at our margin and our margin profile is a little bit of a pause right now, a little bit of moderation in the growth. But again, nothing's changed in our longer-term thesis. And we have an Investor Day at the end of November, and I'm sure we'll touch on it. And at that point, we'll give indications of a longer-term model and where you should expect to see margins go longer term.

關於 Epi，正如 Gene 所說，我只是回應 Gene 的評論，Epi 的部分好處是成本較低。但我再次強調，我們不想做到那麼細化。我認為現在看待我們的利潤率和利潤率狀況的方法是有點暫停，增長有點放緩。但同樣，我們的長期論文沒有任何改變。我們在 11 月底有一個投資者日，我相信我們會談到它。到那時，我們將給出長期模型的指示，以及您應該期望看到長期利潤率的情況。

Okay. Great. And then, Gene, just wondering on the pipeline, where are the areas that you're seeing that the quickest conversion from pipeline to orders to being able to deliver, whether it's by end market by customer type. Could you just give us a little more color on where you see the most immediate strength in that pipeline you're developing?

好的。偉大的。然後，吉恩，只是想知道管道上，您看到從管道到訂單到能夠交付的最快轉換的領域在哪裡，無論是按客戶類型劃分的終端市場。您能否為我們提供更多信息，說明您在正在開發的管道中最直接的優勢在哪裡？

Yes. I mean if you look at the development cycles, those are pretty predictable by market. Of course, mobile consumer converts the fast from an opportunity to a revenue ramp that could be 12 months or less. Data center is the second quickest 18-month development cycles are common from opportunity creation to shipping and revenue. Renewables tends to be about three years and EV is four trending back down to three. So you're in that sort of range two to three years, I should say, in renewables.

是的。我的意思是，如果你看看開發週期，就會發現市場是可以預測的。當然，移動消費者將快速從機會轉變為收入增長可能需要 12 個月或更短的時間。數據中心是第二快的，從機會創造到運輸和收入，開發週期通常為 18 個月。可再生能源往往約為三年，而電動汽車則為四年，趨勢回落至三年。所以我應該說，在可再生能源領域，你會處於這樣的範圍內兩到三年。

With that said, many of the opportunities in our $1 billion pipeline are well along in terms of development stage. They're obviously not all at the early stage. So -- we'll see them kicking in throughout this year, next year, even EV, some of those programs or late-stage development programs contributing to short-term growth. Same thing with solar.

話雖如此，我們 10 億美元的管道中的許多機會都處於開發階段。顯然他們並不都處於早期階段。因此，我們將看到它們在今年、明年啟動，甚至是電動汽車，其中一些項目或後期開發項目有助於短期增長。太陽能也是如此。

So it's a little hard to characterize when you've got $1 billion pipeline that's expanding so quickly across so many different markets and so many different customers. But that gives you a little bit of flavor about the rough time lines of converting from pipeline early opportunity to actual shipping and revenue ramping.

因此，當你擁有 10 億美元的管道，並且在如此多的不同市場和如此多的不同客戶中快速擴張時，很難描述它的特徵。但這讓您對從管道早期機會轉換為實際運輸和收入增長的粗略時間線有了一些了解。

Great. Just if I could another one. The increase from Q1 to Q2 in the pipeline opportunity was pretty sizable. Was that mostly from existing customers changing their forecast and maybe adding some new applications? Or did you actually add a lot of new customers or applications in there?

偉大的。要是我能再來一張就好了。從第一季度到第二季度，管道機會的增加相當大。這主要是由於現有客戶改變了他們的預測並且可能添加了一些新的應用程序嗎？或者您實際上在其中添加了很多新客戶或應用程序嗎？

Yes. We actually added in the solar space. Let me specifically highlight appliance industrial more than doubled the customer projects within that pipeline. Data centers, we more than doubled the number of customer projects within that pipeline.

是的。我們實際上添加了太陽空間。讓我特別強調一下，家電工業的客戶項目數量增加了一倍多。數據中心，我們將該管道中的客戶項目數量增加了一倍多。

Solar actually saw nearly a doubling of revenue per project, which is an interesting dynamic. While it didn't diversify as fast, we see more people looking to sort of double down or go bigger as they convert from silicon to either GaN or silicon carbide.

實際上，太陽能每個項目的收入幾乎翻了一番，這是一個有趣的動態。雖然它的多樣化速度沒有那麼快，但我們看到越來越多的人在從矽轉向氮化鎵或碳化矽時尋求加倍投資或做大。

So it varies a little bit by market, but those are a couple of facts and figures to give you a sense of the dynamic. It's certainly broadening quite dramatically in terms of number of customer projects while the overall revenue pipeline grew, of course, from 30% to over $1 billion.

因此，不同市場的情況略有不同，但這些是一些事實和數據，可以讓您了解動態。就客戶項目數量而言，它無疑正在顯著擴大，同時整體收入渠道也從 30% 增長到超過 10 億美元。

(Operator Instructions) The last question comes from the line of Shadi Mitwalli from Craig-Hallum

（操作員說明）最後一個問題來自 Craig-Hallum 的 Shadi Mitwalli。

Any question there from Craig-Hallum?

克雷格-哈勒姆有什麼問題嗎？

Can you hear me?

你能聽到我嗎？

Yes we can. Thank you.

我們可以。謝謝。

I just got a question on how far from prior highs, are GaN gross margins? And do you have any visibility into them returning near those levels, either through mix or cost declines?

我剛剛收到一個問題，GaN 毛利率距之前的高點還有多遠？您是否能看到它們通過混合或成本下降而回到這些水平附近？

Yes, we don't break out our gross margins by technology or in further granularity. But it's fair to say that gross margins took some hit with the TSMC price increases that we spoke about over the last year, 1.5 years, first one and was 20% almost 1.5 years ago, another 6% at the start of this year, and we made a strategic choice to continue to drive towards system cost reduction and revenue growth.

是的，我們不會按技術或進一步細分來細分毛利率。但可以公平地說，去年我們談到的台積電價格上漲，毛利率受到了一些打擊，1.5 年，第一次，大約 1.5 年前是 20%，今年年初又是 6%，我們做出了戰略選擇，繼續推動系統成本降低和收入增長。

With that said, we don't anticipate further price increases. We have a lot of cost reductions coming. We highlighted a number of them in our pipeline that Ron went through, including the in-house epi on the silicon carbide side, but we're also completing a major transition from Gen 3 to Gen 4 which is very important to driving incremental gross margins to that business, bringing it much closer to the average corporate and ultimately driving towards our long-term model. So I think some of that gross margin adjustment or negative impact is certainly behind us, and we see a pretty attractive path of incremental gross margin improvements on the GaN business going forward.

話雖如此，我們預計價格不會進一步上漲。我們將大幅削減成本。我們重點介紹了 Ron 經歷過的管道中的一些問題，包括碳化矽方面的內部外延，但我們也正在完成從第 3 代到第 4 代的重大過渡，這對於推動增量毛利率非常重要使其更接近普通企業，並最終推動我們的長期模式的發展。因此，我認為一些毛利率調整或負面影響肯定已經過去，而且我們看到了 GaN 業務未來毛利率增量改善的相當有吸引力的路徑。

Thank you. Seeing that there are no more questions from the queue. This concludes today's conference, and thank you for joining Navitas Semiconductor Second Quarter 2023 Earnings Call. You may now disconnect.

謝謝。看到隊列中沒有更多問題了。今天的會議到此結束，感謝您參加納維半導體 2023 年第二季度財報電話會議。您現在可以斷開連接。