Gene Sheridan: Yeah. No, those are great observations and thanks for appreciating the chargers as everybody usually does. But you’re right, well, right, 30-watts and below is relatively slow charging. GaN doesn’t bring that much of a value prop. It’s already a pretty small case. You get into 50, 60 watts. That’s pretty fast charging for a laptop and really fast for a smartphone. You get to 100 watts, now you can charge multiple devices superfast. So as you go up in power that leads you right into the sweet spot of organic seed technology, while also increasing the GaN content from one chip to two chips or in many cases our GaNSense half-bridge, which is one of our most advanced products and one of the things I highlighted.
So we continue to see the trends of faster and faster charging. I think it’s an obvious and compelling thing. Consumers don’t change overnight, but Xiaomi and Oppo are great examples. The Chinese tend to be early adopters and have been the most aggressive. Most of those products I mentioned about the Mi 14 Ultra, the CIVI 4 Pro, these are all 100-watt and up, really powerful products, superfast charging. We’re seeing those same trends out of the other mobile leaders in the different regions, albeit at a bit slower pace. But I think what you’re seeing from China is what you’re going to see from the others. A lot of it actually comes down to battery technology. The battery technology needs to safely accept in your phone 30 watts, or 65 watts, or 100 watts.
So it’s not as simple as just switching from a 30-watt charger to a 100-watt. You do need to advance that battery technology. The Chinese and others are certainly proving that you can safely accept 100 watts or more, and that’s zero to 100% charge in under 15 minutes. So they’re setting the example. I think it’s just a matter of time. You’ll see that same trend. I’m already seeing it with Samsung is now up to 45 watts in their fast charger, for example, using our GaN technology. So those trends are solid and they’re coming, and that’s going to lead them right into our GaN IC strength.
Richard Shannon: Okay. I guess I didn’t realize about the batteries, so thanks for that detail, Gene. My second question is, just kind of the general competitive dynamics in both the material systems here. We’ve seen some more suppliers getting into the GaN space and increasing capacity, looking to be more aggressive. And then in the silicon carbide space, we’ve obviously seen a slowdown here. And so I just want to get any sense of any changing, competitive dynamics, pricing, et cetera, that you’ve seen here in the last 6 months in either of those materials.
Gene Sheridan: Yeah, as much as if you take GaN, as much as there are various startups that pop-up, I have to admit it, doesn’t feel like it’s changed too much. It’s primarily Navitas. We see Infineon and Infineon GaN systems. We see power integrations. We see Innoscience on the low end. And it trails off pretty quickly from there. So we haven’t seen any change to ASP degradation or anything sort of unusual there. So surprisingly not much of a change in the competitive landscape. Silicon carbide, you still have the big players, of course, the IDMs, as you might call them. We’re a small single-digit market share player with a lot of upside. Just 1% or 2% market share gains for us can really matter. Last year things were really tight.
So there’s almost no ASP degradation. This year, I’d say supply and demand with the softening of demand and some increase in supply. I’d say we now have sort of normal ASP degradation. But our focus tends to not be on, obviously, we’re not a price leader. We’re not going part to part. We’re very focused on system value. In many cases, we’re designing the system or co-designing the system for the customer, with the customer, especially in the data center space and the EV space.
Richard Shannon: Okay. Great. Thanks, Gene.
Gene Sheridan: Yeah. Thanks, Richard.
Operator: [Operator Instructions] And your next question comes from the line of Jon Tanwanteng with CJS Securities. Please go ahead.
Charles Strauzer: Hi. Just one quick follow-up. Can you provide us an update on cash burn, when you think you might achieve breakeven? Thanks.
Janet Chou: We think we can achieve operating margin level breakeven, when revenue reaches $50 million to $55 million. In addition to driving profitable growth as the new CFO on board, I’m sharply focused on driving working capital efficiency and improve process and systems. We remain very confident with our long-term target financial model, which we laid out on Investor Day.
Charles Strauzer: Great. Thank you.
Janet Chou: Thank you.
Operator: We have no further questions at this time. This concludes today’s conference. Thank you for participating. You may now disconnect. For further comments or questions, please e-mail ir@navitassemi.com.
