POWI Q4 2024: 20 EV GaN Design Wins & 50kW Tech Progress
- Advanced GaN technology: Executives expressed strong confidence in their GaN roadmap, noting that current technology enables applications up to 50 kilowatts and that the recent acquisition of Odyssey Semiconductor will accelerate progress toward high-power GaN products capable of hundreds of kilowatts, potentially disrupting both the EV drivetrain and AI data centers.
- Robust automotive design wins: The company highlighted significant traction in the automotive segment with around 20 design wins already in production and new GaN solutions being introduced for both 400-volt and 800-volt systems, positioning it well to capture higher-value opportunities in the evolving EV market.
- Resilient industrial growth prospects: Discussions pointed to a strong outlook for the industrial segment, with expectations that robust infrastructure projects and renewables will drive significant revenue growth, even as other segments face seasonal softness, supporting a diversified and resilient revenue mix.
- Delayed Revenue Recognition: The company's first data center product is scheduled for launch next year, yet significant revenue from it is not expected until 2027 or 2028.
- High-Power GaN Execution Risks: Heavy reliance on transitioning to high-power GaN for automotive and AI data centers comes with substantial technological and market adoption uncertainties, which may delay or dampen expected benefits.
- Macro Economic Uncertainties: Uncertain impacts from tariffs and shifting subsidy policies could adversely affect demand, especially in end markets like appliances and industrial segments.
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GaN Progress
Q: What new progress in GaN tech occurred?
A: Management highlighted improved GaN technology, now supporting up to 50 kW applications, with the Odyssey acquisition accelerating future high-power development toward EV drivetrain use within 3–5 years. -
Automotive Wins
Q: How many automotive design wins exist now?
A: They reported approximately 20 designs in production, including new wins for 400‑volt and 800‑volt systems, reinforcing strong EV positioning. -
End-market Trends
Q: What’s the key update on end markets?
A: Industrial markets are leading, driven by infrastructure and renewable projects, while other markets show steady trends. -
Segment Growth
Q: Will every segment grow this year?
A: Yes, all four segments are expected to grow—with industrial leading, followed by consumer and communication improvements through technology upgrades. -
Q1 Segments
Q: What’s the segment outlook for Q1?
A: Consumer and industrial segments should grow, while communications and computer segments may see declines due to seasonal dynamics. -
Inventory Targets
Q: What is the Q1 channel inventory target?
A: Management expects sell-in and sell-through to balance, maintaining typical channel inventory levels into Q1. -
Data Center Revenue
Q: Are data center products GaN-based?
A: The first data center product is entirely GaN-based, with significant revenue anticipated from this segment by 2028. -
GaN Competitive Edge
Q: Is the high-power GaN edge sustainable?
A: They believe in a sustainable competitive advantage through system-level design improvements and cost-efficient, smaller die sizes, despite industry commoditization pressures. -
Tariffs and Subsidies
Q: How are tariffs and subsidies impacting outlook?
A: Management is monitoring these factors closely, expecting normal trade conditions will keep impacts modest while observing sell-through trends.
Research analysts covering POWER INTEGRATIONS.