Q4 2023 Navitas Semiconductor Corp Earnings Call

Participants

Stephen Oliver; VP Corporate Marketing & IR; Navitas Semiconductor Corporation

Gene Sheridan; Co-Founder & CEO; Navitas Semiconductor Corporation

Ron Shelton; CFO & Treasurer; Navitas Semiconductor Corporation

Janet Chou; Chief Financial Officer, Executive Vice President, Treasurer; Navitas Semiconductor Corp

Quinn Bolton; Analyst; Needham & Company, LLC

Ross Seymore; Analyst; Deutsche Bank

Kevin Cassidy; Analyst; Rosenblatt Securities

Jon Tanwanteng; Analyst; CJS Securities

Jack Egan; Analyst; Charter Equity Research

Richard Shannon; Analyst; Craig Hallum

Joe Moore; Analyst; Morgan Stanley

Presentation

Operator

Good afternoon. Thank you for standing by, and welcome to Navitas Semiconductor Fourth Quarter and 2023 financial results conference call. Please be advised today's conference is being recorded and a replay will be available on Navidea's Investor Relations website.
I would now like to hand the conference over to Stephen Oliver, Vice President of Corporate Marketing and Investor Relations. Stephen, over to you.

Stephen Oliver

Good afternoon, everyone. I'm Steven Oliver, Vice President of Corporate Marketing and Investor Relations. Thank you for joining Navitas Semiconductor 's fourth quarter and full year of 2023 Results Conference Call. I'm joined today by Gene Sheridan, our Chairman, President, CEO and Co-Founder, and Ron Shelton, CFO and Treasurer. Also present is Janet Cho, who will take over as EVP, CFO and Treasurer following this earnings report.
As announced earlier, 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. He's also posted on the Investor Relations section of our website. 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 fourth 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. It could cause actual events or results to differ materially from expectations expressed in our forward-looking statements. Important factors that can affect Novitas 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 section in our most recent 10-K and 10-Q. Our estimates or other forward-looking statements may change and Novitas 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. And now over to Gene Sheridan, CEO.

Gene Sheridan

Thank you, Steve, and thanks to everyone for joining the call today. As we celebrate our 10-year anniversary, I'm very excited to announce a number of major milestones for the company, which include cumulative shipments of over 150 million devices savings of over 200,000 tons of CO2. Our customer pipeline as announced in December of over $1.25 billion and our highest quarterly revenue ever with over $26 million in Q4.
This quarterly result exceeds our guidance and reflects an increase of 111% from Q4 of the prior year. In total, 2023 annual revenue comes in at $79.5 million, which reflects growth of approximately 109% over 2022 in a year when overall semiconductors were generally down around 8%.
Let me now turn to some of the market-specific developments and highlights. While the mobile market in general is experiencing limited growth in the near term, we continue to see solid revenue increases as major mobile players transition from silicon to GaN-based chargers are high fee generation for our Jansen Pepperidge platform is a key component in fast and ultra-fast mobile charging.
All 10 of the top 10 mobile OEMs are now in production with Novitas and Ghana's climbing the adoption curve rapidly. In 2024, we expect customers like Opel and Xiaomi to ship over 30% of all their chargers with GaN technology. Novitas now powers five different Opel models, and we're excited to announce eight newly released Xiaomi phone models with GaN chargers ranging from 67 watts to 121 watts.
In Korea, success with Samsung continues, we were already powering the S23 charger. And now we've been selected to power the new Galaxy S24 GaN has moved from beachhead to mainstream and as the technology of choice for new mobile designs across phones, tablets, laptops, and aftermarket chargers.
We have also developed a new M Series version of our generation four average IC, which are optimized for motor drives and a major driver in our home appliance pipeline. As noted in December, our appliance and industrial pipeline totals over 200 projects and approximately $360 million in potential business. I'm pleased to announce another major appliance design win with a Tier 1 player, which leverages this latest M-Series pack range, which we believe enables the highest frequency, highest efficiency and highest power density motor drive for appliance and is expect to add over $10 million per year in new revenue starting late this year.
In total, Novitas is in development with 7 of the world's top 10 home appliance OEMs, which we expect will drive further revenue starting later this year and accelerate throughout 2025 and 2026. In appliance and industrial segments, major OEMs are moving to GaN or silicon carbide to meet regulatory requirements for energy efficiency and consumer demands for higher power density, along with transitions from gas power heating and cooling systems to fast adoption of heat pump technology.
We now have customer designs underway at two of the top three global leaders in industrial pumps and one of the top three global leaders in heat pumps, accommodation, which is anticipated to drive tens of millions of new revenue starting late next year or 2026. We are also excited to share that now the capacity and IT have been designed into the ground-based terminal for a major Internet satellite rollout that is expected to drive over $5 million annually with shipments beginning late this year and continuing for the next 5 to 10 years.
In September last year, we launched Dante technology, a new industry benchmark and the world's most protected, most reliable and high performance, GaN power semiconductor technology. Just this week at the prestigious APEC conference in Long Beach, we expanded that technology family to include a topside cooled packaging option with a 20-year warranty against a break the glass ceiling that has prevented you from entering high power high roll-up liability markets for decades as power-hungry AI processors increased power demand by two to three times now increasing to 1,000 to 2000 amps per processor and up to 100 kilowatts per rack. New GaN, safe and Generation three fast silicon carbide technologies are enabling drivers to deliver the needed power densities and efficiencies required by these next-generation AI processors.
Now because dedicated data center design center is now achieving unprecedented 4.5 kilowatt in the industry standard CRPS. 185 form factor, more than double the power density of legacy silicon solutions with lower temperatures, higher reliability and at a lower cost per watt. Over 20 designs are expected to ramp into initial mass production in 2024 at the top data center players, which we expect to contribute $3 million to $5 million in new revenue in the second half of this year.
In electric vehicles, we observed the same slower growth rate as observed by our peers, which is creating some short-term revenue headwinds. But we're also benefiting from the introduction of our new Dante technology, plus our new generation three fat cells and carbon offsets, which are significant drivers in our revenue pipeline for onboard and roadside EV chargers for both 400 volt and 800 volt battery systems.
Silicon carbide-based onboard chargers are in or moving to production this year with customers, including top EV brands such as Zucker, Volvo and smart. We also have multiple design engagements underway in U.S. Europe, Korea, China and Japan. Detailing chargers are expected to ramp later this year and into 2025. Again, I see EV adoption is also on track for mass production ramps in 2025, Novitas and pioneering leading edge onboard bidirectional charging at 6.6 kilowatt and 11 kilowatts with our dedicated EV design center.
Last year, we announced a joint design center with Geely, a top 10 EV player. And now we're excited to announce another joint design center with Henry, one of the top EV onboard charger supplier for Honda, BYD, Honda, fueling and other first, the Shin redevelopment projects are already underway and are expected to contribute appreciable revenues in early 2025 in ET roadside chargers. In addition to our ongoing silicon carbide production with SC segment, which is a major supplier to Electrify America and E-Z-GO, we are adding multiple Tier one development in U.S. Europe and Asia, with mass production starting in the second half of this year, which are expected to contribute over $5 million in 2025.
In the solar space, while we are observing a continued general market slowdown given high interest rates but limit our growth in the first half of 2024, we are seeing accelerating displacement of silicon with GaN safe and Generation three fast silicon carbide technologies in our solar and energy storage customer pipeline. We now have significant developments with three of the top US 5 OEMs and the majority of the world's top 10 solar players. While we are already shipping silicon carbide in the market today, GaN adoption in solar is on track to start ramping late this year. And together, these new GaN and silicon carbide customer designs are expected to add tens of millions of revenue in 2025.
Overall, while we're not immune to the near-term market headwinds, which are translating to more muted revenues in the first half of 2024, the significant new wins that I've highlighted in my remarks in combination with an anticipated market recovery starting in the second half of the year are expected to translate into full year 2024 revenue growth of 40% to 50% over 2023. For all of our target markets, the system benefits derived from gallium nitride and silicon carbide are amplified by long-term secular tailwinds.
These include energy source conversion from fossil fuels to renewables, gas powered vehicles, transitioning to all forms of electric transportation and the intent and rapidly accelerating pertinent of AI and edge computing. Our leading edge GaN ICs and Jennifer technologies are both displacement technologies in traditional markets and accelerating and enabling technology and new energy markets. As we've stated before, these drivers, combined with our unique position and the industry's only pure play power, GaN and silicon carbide player position, Novitas should grow at a rate of six to 10 times faster than the overall power semiconductor market for years to come.
And now over to Ron to review the financials.

Ron Shelton

Thank you, Gene, and good afternoon, everyone. in my comments today. I will first take you through our fourth quarter and annual 2023 financial results. And then I'll walk you through our outlook for the first quarter, along with some of the market dynamics, we are currently seeing revenue in the fourth quarter of 2023 was again above our guidance, growing 111% year over year and 19% sequentially to approximately $26.1 million.
For the full year of 2023, we grew revenue to $79.5 million, representing year-over-year growth of 109%. 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 will refer to non-GAAP expense measures. Non-GAAP gross margin in the fourth quarter increased to 42.2% from 42.1% in the third quarter of 2023 and 40.6% in the fourth quarter of 2022.
Gross margins in the quarter were at the low end of our guidance, primarily due to increased mobile market product mix as we continued to see strength in that part of our business. For fiscal year 2023, non-GAAP gross margin was 41.8% compared to 40.8% in the prior year. Fourth quarter total operating expenses were $20.7 million, comprising SG&A expense of $9.3 million and R&D of $11.4 million. That's a bit higher than our guidance due primarily to slightly higher spending on materials related to certain research and development activities.
For fiscal year 2023, non-GAAP operating expenses were $73.5 million compared to $56.7 million in the prior year. This increase reflects continued significant investments in new products, technologies and markets. All of these investments are laying the stage for significant growth in the future.
Putting all of this together, the loss from operations for the fourth quarter of 2023 was $9.7 million compared to a loss from operations of $12.4 million in the fourth quarter of 2022 and a loss of $40.3 million for the full year compared to a loss of $41.2 million for 2022. Our weighted average share count for the fourth quarter was 179 million shares.
Turning to the balance sheet, remains very strong with high levels of liquidity. Cash and cash equivalents at quarter end were $152.8 million, and we continued to carry no debt. Accounts receivable were $25.9 million compared to $17.6 million in the prior quarter, reflecting a product shipment pattern that was less linear than prior quarters. It wasn't a surprise as we had significant demand in December from our mobile customers.
Inventory increased to $23.2 million compared to $15.9 million in the prior quarter. Similar to accounts receivable. We were not surprised by the near-term increase in inventory levels, which grew in anticipation of January shipments to the mobile market. Also, we procured additional silicon carbide substrates and epi wafers to support expected significant growth in the second half of the year in the EV, industrial and solar markets.
Moving on to guidance for the first quarter, we currently expect revenues of $23 million plus or minus $500,000 at the midpoint. This represents substantial year-over-year growth of more than 70% over the $13.4 million we recorded in the first quarter of 2023 and is slightly down off of the fourth quarter of 2023, largely due to expected seasonality in our mobile business and some softness in the other markets as we already discussed.
Gross margins for the first quarter are expected to be approximately 41%-plus or minus 50 basis points as our mix continues to lean more towards the mobile market in the near term. As we move through the year, we expect improving margins aligned with an expected recovery in higher-margin markets, including EV and industrial in the second half of 2024. In total, operating expenses in the first quarter, excluding stock-based comp and amortization of intangibles, are expected to be approximately $21.5 million.
We continue to invest in growth oriented initiatives for our end markets. As we have indicated before, we expect increases in our spending will be substantially less and growth in our revenues as we continue to see leverage in our business model and put that in perspective compared to the first quarter of 2023 at the midpoint of our guidance, we expect revenues in the first quarter of 2024 to grow more than 70%, yet operating expenses based on our guidance, our expected growth only 20% over the same period.
For the first quarter of 2024, we expect our weighted average share count to be approximately 180 million shares. Stock-based compensation to be approximately $13 million and amortization of intangible assets to be approximately $5 million.
In closing, we're extremely pleased with the results for the quarter and for all of fiscal 2023. Our results continue to demonstrate that we can and expect to grow significantly faster than the overall market. While we are not immune to some of the same macro trends seen by others leading to more muted outlook for the first half of the year. We expect the strength of our pipeline and some market recovery in the second half of the year will support annual revenue growth of 40% to 50% in 2024 relative to 2023. Operator begin the Q&A session.

Question and Answer Session

Operator

(Operator Instructions) Quinn Bolton, Needham.

Quinn Bolton

Again, congratulations on a strong finish to 2023 on most most metrics. So you'll look pretty good, certainly the top line into next year, but the gross margin coming in a little late, you talked about the mix shift to mobile driving some of that lower margin in the near term, but Ron or Jean, could you give us a sense how do you see margins recovering through 2024? Can you give us sort of any thoughts on where margin might exit 2024? And then I've got a follow-up question.

Gene Sheridan

Yes, sure. Thanks, Quinn. This is Gene. As you commented and we explained the margins are a little bit more muted in the first half of the year, just purely due to market mix and the strength of the mobile market and most other markets are a little softer in the first half of the year as we anticipate automotive and industrial strengthening the back half of the year, but also the four major growth drivers that I highlighted on AI data centers ramping in the later part of the year, the Tier one appliance on project ramping later in the year, again, starting at Solar later in the year, even the Internet satellite project.
All of these are expected to be above that average. So all of these will contribute to a modest margin improvement throughout the year. We expect to end the year still still below mid 40s, but we'll see incremental improvement in Q3 and Q4.

Quinn Bolton

Thank you, Gene. And my next question and I may have asked you this in the past, but just kind of walking the show floor here in A-Pac, if you see GaN all over the place, I know you guys are targeting a lot of the higher power GaN to 650 volts and above, but it seems like there's increasing opportunity in kind of lower-power mid-power GaN as well. And just wondering, as you guys continue to grow, do you have any revised thoughts on potentially expanding the product portfolio to below a 650 volt GaN technology? Because again, it seems like there's some pretty good opportunities in that lower mid-power market as well.

Gene Sheridan

I think if they are fully fully agree, Quinn, and that is definitely of interest. It's an area that we're working on actively. We don't have a specific on launch schedule development schedule to share. We certainly got our hands full with all the opportunities at 650 volts. But I agree with you. I think there's great opportunity for lower GaN and it's something we plan to pursue over time.

Quinn Bolton

Perfect. We'll both take and I'll go back in the queue. Thank you. Thanks, excellent.

Operator

Ross Seymore, Deutsche Bank.

Ross Seymore

Please go ahead and ask your question.
And Ron and Jennifer, congrats to both your transitions. I guess my question for this year is being second half weighted is no different than a lot of the peers. But just how second half weighted do you expect it to be? Do you expect to grow sequentially in the second quarter? Is it going to be much more of a stair step up as inventories normalize and a lot of these new design wins come in the second half?

Gene Sheridan

Yes, sure. Thanks, Ross. Yes, not too dissimilar than prior years. It's probably in the range of 40%, 60%. That's similar to what we saw last year. And so I don't think there's much surprise there.

Ross Seymore

Okay. I guess as my follow-up, you talked about a ton of design wins ramping at various times and some really meaningful dollar amounts. How do you think the mix of the company changes by end markets. You guys had talked a little bit about how the split was between mobile and appliance, et cetera. How is that in 2023? And how do you expect that to transition (technical difficulty)?

Gene Sheridan

Yes, yes. Definitely, '23 saw a really nice surge in mobile. That's continuing. As we explained in early this year. That surge took mobile over 40%. The other markets we're in that 10% to 20% range. I think we'll see that shift back throughout the year, given the anticipated recovery and in industrial and EV, but also the ramps we've talked about a data center is brand new for us that's really coming off of a zero base appliance strengthening with that strong pipeline and that major new Tier one project, that one of ramps of GaN and SiC both ramping into solar in the second half of the year. So I think we'll see it balance out pretty nicely where the mobile goes below 40% and the other markets creep up from there 10% to 20%.

Ross Seymore

Thank you.

Operator

Kevin Cassidy, Rosenblatt Securities.

Kevin Cassidy

Yes. Thanks for taking my question and congratulations on the good results. And Rob, happy trails and Janet look forward to working with you. And on the mobile market, you mentioned that GaN is about 30% market share. Do you see that market share growing in the mobile chargers or is this going to be steady state or maybe what do you see as the growth rate in the mobile market for GaN?

Gene Sheridan

Yes. Thanks, Kevin. Good question. And that 30% was specific to Xiaomi and also kind of leading the charge, so to speak of. But I think most again, mobile is probably still single digit adoption rates. So we don't believe there's any limit to switching. I think ultimately, all of the silicon chargers will move to again over time. Part of that dynamic is not just driven by our technology or by the customer choice but but also the power levels moving up.
So as the whole world goes from slow chargers, which are five, 10, 15, 20 watts, where GaN has and bring much value to fast chargers in the 30, 40 50 watts. And then ultimately, the ultrafast chargers were really, really strong at 100 watts or higher. There's no limit to switching everything over from silicon again. So it's just a question of time. And I think the growth rates between now and then we'll continue pretty strongly.

Kevin Cassidy

And maybe if we look at the other markets that you're penetrating now 20 design wins in data center and the home appliances that I mean, can you draw parallel to the mobile market for where those markets will be going yes, I think it's almost identical.

Gene Sheridan

I think you'll see these first few leader type performance examples, setting the example for the whole industry, once you get your first beachhead customers, beachhead applications within the market tends to be on the high end. It sets an example for others proves that the value is there that the quality, the reliability, everything is there. And that we see a pretty effective domino zone occurrence over the subsequent years were one project leads to 2 leads to 4 leads to 16 and things start to grow exponentially.
So I think you can look back at what's happened, what we've led in mobile chargers just in the last three years, and we anticipate the same sort of domino effect the same sort of accelerating adoption to occur in each of these new markets with their own sort of S-curve adoption.

Kevin Cassidy

Okay, great. Thank you.

Gene Sheridan

Thanks, Kevin.

Operator

Tristan Gerra from Baird.
This is Tyler on for Tristan. Thanks for taking the questions. We noticed that anchor is advertising GaN prime on their website as a for a home backup solution. They're advertising their products with your technology as a core competency.
Could you please remind us how GaN prime represents a step-up in performance, the potential size and growth of the home backup market and your content in these boxes?

Gene Sheridan

Yes. Great. Great. I'm glad you caught that and we love the fact that we've got no major players featuring game right into headline. In fact, Acre, I think positions and ourselves as the largest GaN charger line in the world. And while we're not the exclusive supplier, we're a major supplier to anchor it. And this whole positioning obviously benefits the whole industry.
It certainly benefits Novitas that again, prime products in particular can be up to 50% size reduction. I'm up to 30% energy efficiency improvement on an all. And we're now actually at system cost parity. So they're not of demanding a price premium and in that solution. So all of those same benefits that we've seen at Opel, Xiaomi and so many other Samsung S24 applied again, prime family.
Operator, back to you for any follow-up questions.

Operator

Jon Tanwanteng, CJS Securities.

Jon Tanwanteng

Thanks for taking my questions. Gene, I was wondering if you would expect a 50% or more growth when you own at your investor event in December, what are the biggest changes from there? Or is it mostly automotive and inventory issues and maybe some solar in there or is it more broad-based than that? Just help me understand what some what's changed in the pipeline for you.

Gene Sheridan

Yes. Yes, John, that's exactly right. The last two months, 2.5 months, we've seen the slowdown as many have commented about. So really it's not a decline. It's just slower growth in EV and slower growth in industrial. Anytime you get an adjustment in growth rates, you get pockets of inventory that build up, forecasts come down temporarily to kind of swallow that change in growth rate deal with that pocket of inventory, we see that a bit in the channel. And so by all of our indications, we think that in a couple of quarters, and that's added to our more muted expectations for the first half of the year.

Jon Tanwanteng

Got it. Thank you. And then is there any update on just how operating expenses are expected to own a step up this year, especially with the lower growth expectations?

Gene Sheridan

Yes, sure. Maybe this is a good chance for Janet to jump in and share repos.

Janet Chou

Hi. We have a very disciplined, disciplined way to manage our OpEx. We see a lot of operating leverage as we scale off of revenue right now, as you can see from our guidance, we guided Q1 to grow revenue at 70% versus OpEx growth of 20%. We will continue to monitor our headcount plan to make the necessary investment to drive profitable growth, and we laid out our long-term target model in our Investor Day we still remain committed to that. For the longer term, we're working towards to achieve OpEx level at 20% to 30%.

Jon Tanwanteng

Okay, great. Thank you for that. And I know just any update on the time line to either EPS breakeven or cash flow breakeven or profitability?

Gene Sheridan

We're not giving specific updates on long-term model, although committed to it over the next few years. I think profitability is still targeted for $50 million a quarter. Where we hit that, I think depends on market dynamics and of course. So overall growth rates.

Jon Tanwanteng

Okay, great.

Janet Chou

Thank you.

Operator

Jack Egan, Charter Equity Research.

Jack Egan

Please go ahead because Thanks for taking the questions. I have a couple on some of your end markets and how our GaN and SiC the interplay between those. And so of course, there's a lot of buzz around ULAI., particularly with the big infrastructure build-outs going on. And so I was just curious about your approach to that market since both SiC and GaN can be used in data center. So and will those kind of be fighting for the same slots? Or can they coexist in those applications at different power levels or performance measures? Just anything that would be helpful.

Gene Sheridan

Yes, it's a great topic. A really interesting one for us. We've got this our data center design center that designs the entire power supply. So we have really deep system expertise and now we've got leading edge and leading edge silicon carbide. So we're in a unique position to figure the right answers to exactly that question. And it's actually not very non, and it's not very intuitive it's not very easy even for our customers to figure out, but we're doing some really of exciting work going on exactly that. A combination of silicon carbide and GaN.
There's actually two stage stages in the power converter. The first stage are called power factor correction, but we're using silicon carbide often in that stage, followed by DC to DC converter stage with gallium nitride. That kind of takes advantage of the strength of each of the technology, silicon carbide being more mature and very proven on its robustness facing the grid gallium nitride, achieving very high frequency and high efficiency in that DC-to-DC converter.
So there's a lot more to that story than touching here, but you brought up a really important point you're going to see a lot of interesting. We call them kind of hybrid designs where we leverage both GaN and some private, not only for this data center space, but other others in that one to 20 kilowatt area like onboard chargers. So you'll see a lot more developments in that area.

Jack Egan

Right. Okay. That's helpful. And then similarly on the automotive side, so you're expecting GaN to ramp for that later this year. And we're seeing more OEMs move to or at least announced on 800 volt system. And so I'm curious how that changes the opportunity or I guess the mix of silicon carbide and GaN and some of those automotive applications just because silicon carbide sometimes can be higher better at higher voltages. But you still have the benefits of that high frequency for GAN where it can function. So with more 800 volt systems, would it change your outlook at all? Or is it really kind of a wash for you since you do both silicon carbide and GaN?

Gene Sheridan

Well, certainly that's the beauty of it, whatever way the market goes. And I think for interval data in the Gulf are going to coexist for a long, long time at a high level, just like you described, the 800 volt is a better fit for the 1,200 volt silicon carbide for Interval could be either frankly. But we see a lot of that moving to GaN or a combination again of GaN and silicon carbide.
I would point out, though, even for an eight interval battery when you plug it into it, single-phase AC input, which runs 110 to 220 volt, you could actually use gallium nitride on that first phase, followed by the silicon carbide, which then sees the 800 volt battery to charge that battery. So here again, I think the combination of having both technologies puts us in a really unique position to figure out the right approach and whichever approach is going to win, whether it's affordable 300 volts and we're going to we're going to benefit from it.

Jack Egan

Great thanks.

Gene Sheridan

Thank you, Jack.

Operator

Richard Shannon, Craig Hallum.

Richard Shannon

Great. Thanks, guys for taking my question. I'm thinking of a follow-up from a prior question here, really thinking about your yearly revenue growth by end market. Wondering if you actually answered the last question about talking about mobile being about 40% and going below as the other ones ramp up here. Maybe asking a different way here anyway that you could you rank order kind of the dollar contributors to growth here by end market. I would assume mobile is probably the biggest given it's starting at 40%. But if we get a sense of how much dollar growth we're adding in some other ones that might be a not obvious from how you've described the opportunity you're seeing energy?

Gene Sheridan

Yes, thanks, Richard. It's a tough one to call. I gave a bunch of numbers on the data centers is coming off a base of zero. So I said $3 million to $5 million in the second half of the year. So that's still going to be on the smaller side compared to everything else on appliance has been a great strength area for us, especially when mobile was a bit down, and that's going to pick up strongly in the second half of the year.
I think the other markets depend a little bit on how the market recovers to. We've got our product launches, which are going to give us some certainty of that growth that we outlined GaN going into solar, a bunch of additional silicon carbide going into solar, a bunch of overseas. We talked about in silicon carbide that are ramping throughout the year. So it's pretty hard to predict, but it feels pretty balanced, honestly, to me, if you look at what's going to add, you know, $20 million or $30 million to the back half of the year is going to be pretty broad-based across across each of those areas I just mentioned.

Richard Shannon

Okay. Thanks for that clarification. Jean, maybe following up here, thinking about your your new products that are ramping in here and you discussed some of them at your analyst event a couple of months ago. And I think you even less I think even on the last conference call, you're talking about the new half bridge offering here, maybe doing $10 million run rate exiting this year. Wondering if that's still kind of in the range of what you're thinking. And then as you think about your other products like the bidirectional one and again, controlling again, safe to what degree are those going to be contributing to your revenues by, but by the end of the year?

Gene Sheridan

Yes. Great questions, Richard, and thanks for noting all those exciting new products announcements on the on against an average. We're especially excited about the motor versions we've created, which are then tuned Worley for appliance motor in general, but appliance in particular. And that major Tier 1 that's driving $10 million a year starting late this year is actually adopting that motor version of our GaN since average.
And not only that they're pushing it to a frequency efficiency and density that nobody's ever seen before. So we're super excited. Once those products come out, they tend to set an example for the whole industry. There's a lot of reverse engineering that we expect will happen and it will it will likely lead to a nice domino effect of even more.
And we've already got a pretty strong appliance pipeline going against safe. I mentioned sort of throughout because, again, safe is really our high-power you get above 1,000 watts can safe is our answer the most protected, most reliable, most safe, but even a 20-year warranty to back it up, and that's going into solar later this year going into the data centers that's going into EV. So almost across the board in those areas and the others. You mentioned Janssen control is a big part of our mobile charger space. I didn't specifically highlight it, but that's a really nice growing family that's going first into a lot of aftermarket chargers today, and we expect that going into a lot more inbox in Tier one global players in the future.

Richard Shannon

Okay, perfect. Thank you, guys.

Gene Sheridan

Thanks, Richard.

Operator

(Operator Instructions) Kevin Cassidy, Rosenblatt Securities.
Thanks for letting me ask a follow-up. And just generally if you could talk a little more about their relationships, maybe give some details, what were they making prior? Or were they using GaN in the past or is this going to be their first scan products?

Gene Sheridan

Yes, I know it's not a name. People would know, but they're actually a major onboard chargers supplier to top players like Honda, BYD, Honda and many others. So for us, it's a super exciting way to kind of get access and into those cars in the future. The first projects here will actually be silicon carbide for onboard chargers. And we'd I do believe it's going to be their first implementation of silicon carbide and certainly with us and those are already underway expected to launch early next year.
Okay, great. Thanks, guys.
Thanks, Kevin.

Operator

Joe Moore from Morgan Stanley. Please go ahead.

Joe Moore

Great. Thank you. They know at CES and at recent conferences, you had talked a lot about the specific opportunities in data center around AI servers. And just given the very high power on those servers that there should be opportunity for organic. And can you just talk about that specifically with a eye when you could start to see that be a much more material revenue contributor?

Gene Sheridan

Yes. Thanks, Joe. It's a big one. And I think we're still a bit tip of the iceberg here. We've got 20 projects in development. They're all going to production throughout this year. So my estimated $3 million to $5 million revenue impact for the second half of the year, we've had meetings with a lot of the AI. guys and the numbers, the power requirements, the current requirements keep going up and up over the next one to three years.
I mentioned on my remarks, 1,000 to 2000 amps per processor. So I think this ripple effect on how the power has to get delivered is still really being worked out by the industry and the numbers keep going up on our in our system design centers, designing things that we never thought was possible a year ago, 4.5 kilowatts is unprecedented in a specific form factor that that's going to power all those processors and other pushing us to go to 5.5, 6.5 kilowatts, even even higher.
So and I think this is all about the data center today. But ultimately, these AI chips end up in driver of self-driving cars. These AI chips end up in the client and on the edge computing. So I think it's early days. And it's exciting because the power requirements are really unheard of. And that's exactly the kind of challenge we want to tackle with our System Design Center and with our gallium nitride and silicon carbide.

Joe Moore

Great thinking.

Gene Sheridan

Thanks, Joe.

Operator

(Operator Instructions) As there are no further questions. I would like to thank our speakers for today's presentation, and thank you all for joining us. This now concludes today's conference. You may now disconnect.