What changed in this filing

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Item 1. Business

2025-03-19 compared with 2024-03-06 · 50 added, 44 removed, 169 unchanged (36% of the section changed)

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In other applications such as electric vehicles, power may be converted from a high-voltage (e.g.

400 V) DC battery to a lower voltage (e.g.

400 or 800V) DC battery to a lower voltage (e.g.

12 V) or, in the case of solar inverters, from low-voltage DC to high-voltage AC.

In electronic devices today, most of these charging and power supply functions are carried out using silicon (Si) power MOSFETs (Metal Oxide Silicon Field Effect Transistors) or IGBTs (Insulated Gate Bipolar Transistors), along with related analog peripheral semiconductors.

Additional, even-higher voltage applications are evolving, such as grid-tied converters, circuit breakers, rail, wind turbines, and industrial-scale charging (megawatt) systems.

In electronic devices today, most of these charging and power supply functions are carried out using silicon (Si) power MOSFETs (Metal Oxide Semiconductor Field Effect Transistors) or IGBTs (Insulated Gate Bipolar Transistors), along with related analog peripheral semiconductors.

As the electronic content and functionality of systems have increased over time, existing silicon-based solutions have struggled to achieve high energy efficiency and fast charging, and they require large heat sinks or other thermal management methods, and large or complex form factors.

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In general terms, devices rated around 700V address applications requiring output power of approximately 20 W to 20 kW, such as smartphone chargers or data center power supplies.

Silicon Carbide (SiC) solutions are generally designed for higher power applications (up to 1 MW) and higher device voltages (up to 6,500 V).

GaN devices rated from 80-120 V optimize and enable 48 V-based systems such as AI data centers, EV, and AI robotics.

Silicon Carbide (SiC) solutions are generally designed for higher power (multi kW to MW+) applications with higher device voltages (up to 6,500 V).

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At the highest level, GaN is a combination of gallium and nitrogen, which forms a powerful bond with materially stronger electric fields and greater electron mobility compared to silicon.

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The GaN IC solution also provides several benefits compared to GaN discrete solutions, including a smaller footprint, fewer components, energy savings, and lower cost.

Based on third-party estimates, the GaN device market (all voltages) in 2023 was about $260 million with SiC around $2.8 billion.

Based on Navitas’ estimates, Navitas is a market leader in high-voltage (600-700V) GaN, and has a growing share of the SiC market.

The combined GaN and SiC market is estimated to grow around 29% in 2024, with the legacy silicon market growing only approximately 5%.

A new, ‘bi-directional’ GaN platform began sampling in 2024, and represents significant size and system-cost reductions, for solar, motor drive and battery-storage applications.

Based on third-party estimates, the GaN device market (all voltages) in 2023 was over $250 million, with a 41% CAGR to 2029, and with the SiC market in 2023 over $2.7 billion.

Based on Navitas’ estimate, Navitas is a market leader in high-voltage (600-700V) GaN, and is focused on growing market share in SiC.

As new, displacement technologies, GaN and SiC market revenues are expected to grow faster than the legacy silicon market.

Combining GaN and SiC, the total potential market opportunity is estimated to be over $22 billion per year by 2026, split $7 billion for GaN, $9.3 billion for SiC, and with $6.1 billion overlapping GaN/SiC market.

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We are developing a differentiated GaN power IC platform utilizing decades of power semiconductor technical expertise, robust applications knowledge and strong end customer relationships.

We believe our competitive strengths and robust IP portfolio of over 250 issued and pending patents have enabled us to establish a leading market position in GaN power semiconductors.

We believe our competitive strengths and robust IP portfolio of over 180 issued and pending GaN patents (over 300 company-wide) enabled us to establish a leading market position in GaN power semiconductors.

In August 2022, Navitas acquired GeneSiC Semiconductor, adding a broad range of SiC MOSFETs and diodes to the Navitas portfolio.

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Navitas SiC MOSFETs have lower resistance than competitors at higher temperatures, and operate at cooler temperatures, for expected 3x longer device life expectancy.

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Navitas is led by a team of power semiconductor industry experts with a combined 300+ years of experience in semiconductor materials, devices, applications, systems and marketing.

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GaN Power ICs generally can provide up to 3x more power and up to 3x faster charging, with half the size and weight of silicon chargers with the same output power.

With the introduction of USB Type-C universal connectors and charging protocols, and as smartphone screen size, batteries and functions have increased, demand

for high-power “ultra-fast” chargers has been established.

With the introduction of USB Type-C universal connectors and charging protocols, and as smartphone screen size, batteries and functions have increased, demand for high-power “ultra-fast” chargers has been established.

For example, GaN-based 240 W chargers supplied with today’s flagship smartphones can enable 0-100% charging in less than 10 minutes.

As over 2.5 billion chargers are shipped every year, each estimated to include potentially approximately $1 of GaN content, the mobile charger market represents a multi-billion-dollar opportunity based on estimates from IDC PC tracker, USB-C research, Yole research and Navitas estimates.

As of December 2023, all of the top-10 mobile OEMs are in production or development with Navitas.

As of December 2023, all of the top-10 mobile OEMs were in production or development with Navitas, and repeat orders have continued, with some customers reaching up to 30% adoption of GaN vs.

legacy silicon-based chargers in 2024.

Non-mobile (non-battery) applications include ultra-thin TVs, high-powered gaming systems, desktop all-in-one PCs, and various smart home internet-connected devices.

• Data Center Within the enterprise end-market, we primarily focus on solving power problems of data centers.

Nearly 50% of the total cost of ownership of a data center is related to power, which includes the cost of power supplies as well as the cost of electricity for data processing, cooling, lighting and other power needs.

For the data processing component alone, by our estimates (2021), a silicon-based data center is about 75% efficient, implying 25% of the energy used by a data center is wasted as heat.

A GaN-based data center can improve efficiency to about 84% total efficiency, representing benefits in reduced cost of electricity and the cost of cooling.

Navitas’ data center power platform designs are half the size of legacy silicon solutions, meet or exceed European Union efficiency requirements and, based on customer feedback, have an overall bill-of-materials cost lower than legacy silicon.

In aggregate, we estimate that data centers represent about a $1 billion opportunity for GaN ICs based on IDC Worldwide Quarterly Server Tracker and Navitas analysis.

• Data Center.

For AI and hyperscale, the key demands are total power, power density and operating costs.

As GPUs from NVIDIA (e.g.

Hopper, Blackwell & Rubin) and others accelerate in power need to over 1 kW, total rack power demand is increasing from 30 kW to 60 kW, with a roadmap to 480 kW per rack.

At the same time, little to no extra space is allocated to the 220V-AC-to-48V-DC ‘silver box’ power supplies.

Here, no-compromise, hybrid SiC+GaN solutions deliver robust, high efficiency, high power density reference designs are available from Navitas’ data center design center, in power levels at 3kW, 4.5kW, 8.5 kW and beyond.

In Q4 2024, a GaN-IP cross-licensing arrangement with Infineon Technologies AG enabled drop-in, ‘dual sourcing’ and is expected to accelerate GaN’s adoption in in AI data centers, plus access to a new, low-voltage (80-120V) platform addresses 48V applications, and doubles the potential revenue up to $10 per kilowatt of power demand.

In addition, nearly 50% of the total cost of ownership of a data center is related to power, which includes the cost of power supplies as well as the cost of electricity for data processing, cooling, lighting and other power needs.

For the data processing component alone, by our estimates a GaN enables a 40% reduction in losses versus legacy silicon-based systems.

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• Solar/Storage .

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Overall, we estimate the GaN IC opportunity for solar applications to be over $1 billion per year based on Markets and Markets Micro-Inverter Market report and Navitas analysis.

GaN revenue is expected to begin in 2025, starting with standard GaNFast power ICs, then upgrading to a new ‘Bi-directional’ GaN platform for further efficiency upgrades, size and component count reductions.

Meanwhile, higher-power, higher-voltage commercial “string” inverters have adopted SiC to replace legacy silicon IGBTs, with significant savings in weight and size.

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• Electric Vehicles .

EV demand is increasing.

Boston Consulting Group’s 2018 forecast for world-wide EV adoption in 2030 was 21%.

By 2022, that 2030 forecast had risen to 53%.

EV demand is increasing, with battery-electric passenger cars expected to be 25% of sales in 2025 and 50% by 2031[i].

EV adoption challenges include three main themes:

the need for faster charging, demand for extended range, and lowering the cost compared to traditional, internal combustion powered cars.

EVs can also act as supplementary energy back-up for your home to balance energy supply (from household AC, solar, generators) and demand (heating, cooling, cooking, device charging and other electronics), and be a critical part of an energy-independent micro-grid in the event of a grid

power failure.

This is known as “V2x” (vehicle to anything) charging.

For 400 V-rated EV battery systems, ~700 V-rated GaN operates at high-speeds in on-board chargers (OBCs) and DC-DC converters.

For 400 V-rated EV battery systems, and where 220VAC home charging is available, ~700 V-rated GaN operates at high-speeds in on-board chargers (OBCs) and DC-DC converters.

For example, Navitas’ “3-in-1” platform design includes a 6.6 kW bi-directional charge/discharge and consolidated DC-DC converter.

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We estimate GaN and SiC content per passenger EV to be approximately $350 per vehicle.

For trucks, buses and earth-moving equipment, OBCs may be up to 300 kW, and use higher-voltage distribution rails such as 1,000 V – which require 1,700 – 3,300 V SiC.

Similar power and voltage requirements are found in roadside fast chargers.

For long-haul trucking, the USA and 26 other countries signed the COP27 MoU, committing to 30% Zero-emission Vehicle (ZEV) sales by 2030 and 100% by 2040, so a significant ramp in production is anticipated.

A new “Megawatt Charging System” (SAE J3271) is being finalized that will fast-charge with up to 3.5 MW of power using a 1,500V cable – requiring high-voltage SiC, where Navitas leads the industry with devices up to 6,500V.

Competitive Strengths

By December 2023, over 125 million Navitas GaN devices have been shipped, with failure rates of less than one part per million.

Over 400 mobile charger models that include Navitas GaN devices have entered mass production.

As of February 2024, based on publicly-available data, no other vendor has entered production with monolithically-integrated high-voltage GaN, other than simple diode-connected gate-protection transistors.

We believe Navitas is the market and technology leader in GaN power ICs, with leading revenue, technology and intellectual property.

To date, over 12 million GeneSiC products have shipped with excellent quality, and superior performance.

At December 2024, over 240 million Navitas GaN and nearly 30 million SiC devices had shipped, with proven quality and field-reliability performance (failure rates of far less than one part per million).

We believe Navitas is the market and technology leader in high-voltage GaN power ICs, with leading revenue, technology and intellectual property.

We believe our key competitive advantages include:

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• Industry-Leading IP Position and Proprietary Design Support.

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For performance- and cost-optimized applications, high-speed GaN and SiC power components are accompanied by high-frequency system control ICs and digital isolators.

Navitas is unique in having a comprehensive eco-system that enables the high levels of integration from 30 W smartphone chargers to 22 kW on-board, and mega-Watt roadside EV chargers.

Navitas is unique in having a comprehensive eco-system that enables the high levels of integration from 30 W smartphone chargers to 22 kW on-board, and megawatt roadside EV chargers.

• Established Relationships with Key Partners and End Customers.

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• Dedicated Application-Specific Design Centers.

We believe we are unique in adding application-specific design centers for mobile, data center and EV, which allow us to develop GaN- and SiC-based power systems working with key customers in each of these segments, driving additional value with these customers and fueling additional system-led integration back in to our products for future generations.

We believe we are unique in adding application-specific design centers, either standalone or in conjunction with partner customers, for mobile, data centers, and EV, which allow us to develop GaN- and SiC-based power systems working with key customers in each of these segments, driving additional value with these customers and fueling additional system-led integration back in to our products for future generations.

• Proven Leadership Team of Tenured Industry Experts.

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Navitas products address a variety of power applications from 20 W to 20 MW, across markets including mobile/consumer, data centers, home appliance/industrial, solar/storage and EV.

With an established track record in mobile fast charging, over 125 million GaN units shipped, we believe Navitas is well positioned to expand GaN into higher power applications and accelerate adoption of our expansive GeneSiC SiC portfolio.

With an established track record and over 240 million GaNFast units shipped into mobile fast charging and home appliances, we believe Navitas is well positioned to expand GaN into higher power applications – with the GaNSafe platform - and in parallel, accelerate adoption of our expansive GeneSiC SiC portfolio.

Our key strategic initiatives include:

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• Acceleration of Technology Development and Innovation.

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Through Navitas analysis and third-party auditing, we estimate that each GaN power IC shipped saves a net 4 kg of CO2 emissions, and each SiC MOSFET saves 25kg.

To date, over 200,000 tons of CO 2 emissions have been saved as compared to legacy silicon solutions providing the same power output.

To date, over 350,000 tons of CO2 emissions have been saved by GaN alone, as compared to legacy silicon solutions providing the same power output.

Overall, by the target date of the Paris Accord, we estimate that GaN and SiC can reduce CO2 emissions by over 6 Gtons per year.

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To facilitate end customer success, we offer comprehensive design support and utilize a proprietary process design kit tailored to specific engineering needs.

Navitas is unique in opening three, separate, system-dedicated application design centers to accelerate adoption of GaN and SiC into fast chargers, data centers and EV.

Navitas is unique in operating separate, system-dedicated application design centers, either standalone or as joint labs with customer partners - to accelerate adoption of GaN and SiC into fast chargers, data centers and EV.

Furthermore, our technologies are capable of being integrated into numerous product generations and design architectures, creating a scalable business opportunity.

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The core strength of our business lies in our industry-leading IP position in GaN power ICs and SiC MOSFETs.

We invented the first commercial GaN power ICs and along the way have patented many fundamental circuit elements which are needed in most power systems from 20 W to 20 kW.

We invented the first commercial GaN power ICs and along the way have patented many fundamental circuit elements which are needed in most power systems from 20 W to 20 kW and on to 20 MW.

We have more than 300 issued or pending patents, which are expected to expire between the end of 2034 and early 2041.

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A key element of our intellectual property is our GaN IC process design kit (PDK), which we use to facilitate and accelerate product implementation and end customer development.

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These solutions, even though they offer some benefits compared to silicon, still do not capture all the advantages of a GaN integrated power IC that Navitas provides.

Our primary GaN competitors include Infineon Technologies AG, Power Integrations, Inc., Texas Instruments Incorporated, Innoscience (Suzhou) Semiconductor Co., Ltd., Transphorm, Inc.

and Efficient Power Conversion Corporation (EPC).

Our primary GaN competitors include Infineon Technologies AG, Power Integrations, Inc., Texas Instruments Incorporated, Innoscience (Suzhou) Semiconductor Co., Ltd., Renesas Electronics Corp., and Efficient Power Conversion Corporation (EPC).

Primary SiC competitors include Infineon, Wolfspeed, Inc., ON Semiconductor Corporation, ROHM Co., Ltd., Qorvo, Inc., and STMicroelectronics International N.V.

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• Passive and mechanical components (inductors, transformers, capacitors, printed circuit boards (PCBs), plastic housings, and others) are an important complement to GaN power ICs, are used in all mobile chargers and contribute to cost reduction as they generally decrease in size, weight and cost as GaN increases charger switching frequency compared to silicon-based chargers.

Although we expect these cost reductions for passive and

mechanical components to continue, it is possible that they will not materialize as expected, and such costs are not directly controlled by Navitas.

Although we expect these cost reductions for passive and mechanical components to continue, it is possible that they will not materialize as expected, and such costs are not directly controlled by Navitas.

Even in the absence of shortages in the semiconductor industry, corresponding components in silicon-based chargers may increase, allowing GaN-based chargers to achieve expected system cost parity on a relative basis.

With respect to SiC, the market has been supply-restricted, and in 2023 Navitas entered into long-term supply agreements to increase raw-material availability and manufacturing capacity.

Manufacturability

We utilize a fabless business model, working with third parties to manufacture, assemble and test our products.

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Navitas devices are fabricated in a layer of GaN sitting on a silicon substrate (known as “GaN-on-Si”).

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Gallium is not considered a rare or precious metal.

GaN power ICs typically use only 95 µg (micrograms) of gallium per devi in the manufacture of a device.

GaN power ICs typically use only 95 µg (micrograms) of gallium in the manufacture of a device.

On this basis we estimate Navitas will consume less than .01% of the 2,000 tons estimated annual supply potential by 2026.

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We believe we are the first company to publish a sustainability report that comprehensively quantifies the positive impact of GaN power semiconductors on climate change based on global standards.

Our report includes a third-party Lifecycle Assessment (LCA) of GaN technology according to ISO14040/14044, the international standard for assessing environmental impacts throughout a product’s life cycle—from raw material acquisition through production, use, end-of-

life treatment, recycling and final disposal.

The Navitas report also quantifies corporate greenhouse gas (GHG) impacts through 3rd party assessments.

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Combined, GaN and SiC are estimated to save an aggregate of 6 Gtons of CO 2 emissions per year by 2050.

¹ DNV “Energy Transition Outlook 2024”

Human Capital Resources

As of December 31, 2023, our worldwide workforce consisted of 314 full and part-time employees.

As of December 31, 2024, our worldwide workforce consisted of approximately 280 full and part-time employees.

Our approach to compensation attempts to align the interests of every employee with the creation of company value over time.

The Company offers a wide variety of benefits for employees around the world and invests in tools and resources that are designed to support employees’ individual growth and development.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business