News: Microelectronics
6 August 2025
Navitas’ cuts losses in Q2 despite revenue still being down year-on-year
For second-quarter 2025, gallium nitride (GaN) power IC and silicon carbide (SiC) technology firm Navitas Semiconductor Corp of Torrance, CA, USA has reported revenue of $14.49m, down on $20.47m a year ago but up slightly on $14m last quarter.
On a non-GAAP basis, gross margin was 38.5%, down on 40.3% a year ago but up on 38.1% last quarter.
Operating expenses have been cut further, from $21.5m a year ago and $17.2m last quarter to $16.1m.
Net loss has been cut, from $12.05m ($0.07 per share) a year ago and $11.2m ($0.06 per share) last quarter to $9.8m ($0.05 per share).
Market, customer and technology highlights during the quarter are cited as follows:
- NVIDIA selected Navitas for development collaboration to support next-generation 800V data centers, leveraging Navitas’ full portfolio of GaN and SiC across three power conversation stages.
- Stage 1: Solid-state transformers (SSTs) are expected to replace low-frequency transformers (LFTs), leveraging Navitas’ ultrahigh-voltage (UHV) SiC to improve the efficiency and robustness of the power grid, creating a $0.5bn/year SiC market potential by 2030.
- Stage 2: 800V DC/DC can leverage Navitas’ high-voltage GaN and SiC, combined with the firm’s new 80-200V GaN to support the highest efficiency and density with a $1bn/year GaN and SiC market potential by 2030.
- Stage 3: 48V DC/DC to power AI processors can utilize Navitas’ new 80-200V GaN to support highest efficiency and density in this $1.2bn/year market potential by 2030.
- Development timeline: For each stage, initial customer evaluations are complete with final engineering samples expected in Q4/2025; anticipate final supplier selections and system designs completed in 2026 in advance of volume production in 2027.
- Partnership with Taiwan-based Powerchip Semiconductor Manufacturing Co (PSMC) for manufacturing 200mm (8”) 180nm GaN will support plans for higher levels of integration, with expected lower costs and greater capacity, including to support our roadmap and growth goals for AI data centers.
- $97m of net cash proceeds were generated from the sale of common shares, which will provide additional capital to support development and growth expectations primarily for AI data centers and related energy infrastructure markets. During the quarter, cash and cash equivalents hence grew from $75.1m to $161.2m.
- Navitas is sharpening its focus within mobile, consumer and appliances to serve the high-end premium segments, which are expected to reduce revenue dependence on these sectors, improve margins over time, and enable increased focus and investment in AI data centers and energy infrastructure sectors without an increase in near-term operating expenses.
- In high-end mobile GaN charger applications, Xiaomi and Navitas announced the world’s smallest and fastest charger to date, delivering 90W in the size of a typical 12W silicon-based charger.
“We are sharpening our focus on AI data centers and energy infrastructure, built on our collaboration with NVIDIA and other leaders in the sector,” notes CEO & co-founder Gene Sheridan. “We raised $100m in additional capital through the sale of approximately 20 million common shares and announced a new 8”, lower-cost GaN foundry relationship for expanded capacity, both of which support our plans to address this fast-growing market,” he adds.
“We were successful in creating an all-new market for GaN mobile chargers over the past five years, and now we intend to create an even bigger new market encompassing both GaN and SiC for AI data centers and related, critically needed energy infrastructure. We estimate that GaN and SiC technologies can support a 100x increase in server rack power capacity for AI data centers and an expanded $2.6bn market potential by 2030.”
Third-quarter outlook
Due largely to China tariff risks and the more selective mobile strategy, for third-quarter 2025 Navitas expects revenue to fall to $10m±$0.5m. Gross margin should be flat, at 38.5% ±50 basis points. Operating expenses should be cut further, to about $15.5m.
Navitas powering Xiaomi’s 90W next-gen GaN charger
Navitas plans 200mm GaN production with PSMC
Navitas launches 12kW GaN & SiC platform, achieving 97.8% efficiency for hyperscale AI data centers
Navitas’s Q2 revenue and gross margin at higher end of guidance
