Richard Schafer

Rick Schafer of Oppenheimer asked about the automotive segment, specifically the increasing contribution of Battery Management Systems (BMS) next year. He sought guide rails on potential content trends for MPS with BMS opportunities, asking if content per vehicle could double or triple, and identified 48V and power isolation as potential low-hanging fruit. He also inquired about the HVDC (High Voltage DC) market, asking how it compares to the 48V accelerator power opportunity discussed at the analyst day and what that market could represent for MPS.

Answer

Michael Hsing, CEO and Founder, confirmed that 48V, 800V for EV, and power isolation are all significant opportunities. He noted that BMS revenues for autos/EVs are 'a bit far away' but customers welcome MPS's involvement. He highlighted MPS's integrated 48V solutions (6-7x smaller) developed years ago and the potential for silicon carbide solutions in 800V EVs, especially in the China market. Tony Balow, VP of Finance, clarified that new content and zonal designs ramp next year into 2027, while BMS and traction inverter solutions are more like 2027 and beyond. Regarding HVDC, Michael Hsing explained that 48V is a clear trend, similar to telecom, and predicts all building systems/automation will move to 48V DC power solutions, representing a great opportunity. Tony Balow added that for 800V high voltage DC for data centers, it's very far out, and any business gained would be accretive to MPS's overall SAM.

Rick Schafer asked about the potential content trends for MPS in the automotive segment with the ramp of Battery Management Systems (BMS), inquiring if content per vehicle could double or triple, and identifying the 'lowest hanging fruit' such as 48V or power isolation. He also sought to understand the HVDC market opportunity compared to the 48V accelerator power opportunity, and its potential scale for MPS.

Answer

Michael Hsing (CEO and Founder) stated that BMS revenues for EVs are 'a bit far away' but growing, highlighting 48V and 800V for EVs (using silicon carbide solutions) as significant trends. Tony Balow (VP of Finance) clarified that automotive opportunities layer from late 2025/2026 (zonal designs) to 2027 and beyond (BMS and traction inverters). Regarding HVDC, Michael Hsing predicted 48V adoption in data centers and building automation due to its historical telecom roots. Tony Balow noted that HVDC for data centers is far out and hard to size, but any business gained would be accretive to MPS's overall SAM.

Rick Schafer asked if the $4 billion enterprise data SAM includes the future conversion to 48-volt servers and how much HVDC might add to that total addressable market. He also requested an outlook for the Communications segment.

Answer

Founder, Chairman, President & CEO Michael Hsing clarified that the $4 billion SAM does not include future opportunities like 48-volt servers or 800-volt systems, which he views as significant long-term drivers. For Communications, EVP & CFO Bernie Blegen noted that while core networking has plateaued, growth in optical modules for data centers has been strong.

Richard Schafer asked for details on the market opportunity and revenue timing for data center rack power solutions and questioned how much Battery Management Systems (BMS) are expected to contribute to automotive revenue this year.

Answer

CEO Michael R. Hsing confirmed that samples for high-power rack modules are now being delivered but expects material revenue from this to be a 2026 driver. On automotive, Hsing noted that while MPS is shipping products for 48V and 800V transitions, significant revenue impact is more likely in 2026 and 2027. CFO Bernie Blegen added that the second-half automotive growth is primarily driven by content from prior design wins ramping in North America and Europe.

Richard Schafer asked for an update on the number of accelerated projects expected to ramp in 2025 and 2026, and questioned how MPS's potential content per vehicle in automotive might change in 2025 with the shift to 48-volt and 800-volt systems.

Answer

VP of Finance Tony Balow and CEO Michael Hsing explained that while MPS is engaged with all hyperscalers, the exact timing of project ramps is difficult to predict, though they expect scaling in the second half of the year. Regarding automotive, Michael Hsing noted that MPS has been preparing for 48-volt systems for years and its integrated solutions will set it apart. EVP and CFO Bernie Blegen added that the rollout starts with EVs and will be a multi-year trend. Tony Balow also mentioned that growth is broad-based beyond just ADAS.

Richard Schafer asked for color on the sequential decline in Enterprise Data revenue and whether the strong growth in other segments like Automotive and Communications marks a sustainable turn. He also inquired about content trends in China's auto market and its contribution to MPS's overall automotive business.

Answer

EVP and CFO Bernie Blegen attributed the Enterprise Data dip to customer ordering patterns and noted the future impact of second-sourcing, while emphasizing the company's strength in diversity. CEO and Founder Michael Hsing added that while competition is expected in the large AI market, MPS has new SoC and TPU-related designs ramping. Regarding Automotive, Blegen confirmed it's a sustainable step-up from new product ramps, a point echoed by Hsing. Vice President of Finance Tony Balow highlighted the broad-based nature of the auto strength beyond just ADAS. Hsing also confirmed that a significant portion of the auto ramp is from China, particularly in infotainment and ADAS.

Rich Schafer from Oppenheimer asked for the outlook on the Tri-Edge (PAM4) business, given the industry's shift to 100G and 200G lanes, and questioned its potential as a future growth driver for Semtech.

Answer

CEO Hong Ho explained that Tri-Edge is currently used in 400G Active Optical Cables (AOCs) and is forecasted to ramp with a major U.S. CSP. The company plans to develop a 200G per lane Tri-Edge product, positioning it as a low-power, low-cost alternative to DSPs for the 1.6T transceiver market. He noted that capturing even 5-10% of this market would represent a significant opportunity.

Richard Schafer of Oppenheimer & Co. Inc. asked how a major U.S. IDM's cautious spending on advanced nodes might affect Veeco's TAM outlook for Nanosecond Annealing (NSA) and Ion Beam technologies. He also inquired about the revenue timing for the GaN power evaluation.

Answer

CEO William Miller explained that while the IDM is transitioning to a foundry model, Veeco's short-to-mid-term business is not impacted as they continue to partner on R&D for next-generation nodes. Regarding GaN on Silicon, Miller stated the evaluation is progressing well and they anticipate it will drive pilot line business starting in 2026, ramping to high volume in 2027 and beyond.