Jack Egan: Got it. That makes sense. And for the new GaN — since ICs, the PR said that they’re expected to contribute $10 million to annual revenue. Is all that incremental or might some of that come at the expense of growth in some of your older product areas?
Gene Sheridan: Yes, that is a great question. I actually do believe it’s all incremental. I’ll clarify. It’s $10 million annualized starting to ramp throughout next year, so it wouldn’t necessarily be $10 million for the full year. But this is also emerging developing things. We’ve just started sampling the products in the last few months and launching it this quarter. So we expect those numbers to grow over time.
Jack Egan: Got it. Okay. Thanks. That’s helpful.
Gene Sheridan: You bet.
Operator: Your next question comes from the line of Joe Moore of Morgan Stanley. Your line is open.
Joe Moore: Great. Thank you. I wonder if you could touch on your smartphone demand, maybe starting with China. You mentioned the strength there. How much of that do you think is penetration for you guys versus a recovery in that market? And kind of where do you think you stand with inventory there?
Gene Sheridan: Yes, definitely. Thanks, Joe. Yes, Smartphone is obviously a very pleasant upside for us started in Q2 of this year and has gone from sort of strength to strength. It started and continues to be heavily based in China, Xiaomi and OPPO are the two that we highlighted. We traditionally had a very strong relationship with both of them, very high market share with our GaN. So it’s super exciting to see this kind of upside To your question though, about where is it coming from? It’s actually a classic case of this displacement technology that we have today. They don’t have to ship any more chargers for their numbers to grow dramatically. We mentioned that 30% of their total number of chargers next year, we are projecting to use gallium nitride.
So even if their business was flat, you could be going from 10% or 15% adoption rates to 20% or 30% driving a lot of that revenue. So I think a lot of it is just conversion or displacement from legacy silicon over to more efficient, more powerful, faster charging gallium nitride. And it’s not just China. We did mention also the great success we’re having at Samsung with the S23, but that’s already driving second half revenue growth as well.
Joe Moore: And I just as a follow-up, I did want to ask about the S23 win. Can you talk about what kind of penetration you might see there and how pervasive that technology could be within Samsung?
Gene Sheridan: Yes. We don’t have specific adoption percentages on the Samsung stuff like we do with Xiaomi, OPPO. Clearly, they’re earlier stage, but I think Xiaomi and OPPO have been kind of leading the charge, if you will, for mobile charging for the last few years since candid option got started. So we see the other players in Korea and US following their — in those sweet steps, if you will, from a GaN adoption perspective. It is being sold as I believe, an inbox or at least an optional inbox. So when you go to — you go to buy that S-23 from our experience, the attach rates on even what we call optional inbox can be very, very high, especially when it’s promoted as a GaN charger, fast charger, which I believe is adhesive.
Joe Moore: Great. Thank you.
Operator: [Operator Instructions] Your next question comes from the line of Jon Tanwanteng of CJS Securities. Your line is open.
Jon Tanwanteng: Hi, good afternoon. Thank you for taking my questions and nice quarter. You guys mentioned some slowdown that you saw in particular in market solar, high-end consumer. Would you say that’s a net negative for your near-term compared to where you expected it to be? Or is that being offset by these bookings and new business in other places just versus your internal plan?
