In the communications business revenues grew more than 20 percent year-over-year driven by the continued adoption of fast chargers for mobile devices. “We believe we are the leading supplier of power conversion ICs for smartphone chargers as our InnoSwitch products continue to win a sizable share of designs, spanning a wide range of power levels, form factors and customers, including both inbox and aftermarket designs,” said Balakrishnan. Gallium nitride GaN switching technology has been key to reducing the size of the chargers.
“We won more than a dozen new inbox designs in Q2 with power levels ranging from 15 watts to 50 watts. End-users are becoming increasingly aware of differences in charging speed and the OEMs are steadily rolling out new higher power charger models. We expect this trend to continue as 5G devices incorporate larger batteries to support increased consumption of medial and other power heavy functionality,” he added.
While inbox OEM chargers account for vast majority of the market today, aftermarket brands are proliferating rapidly through the use of USB PD technology to handle 65W and up to 100W for smartphones and laptops. “Such designs dramatically increase our dollar content since we typically sell one chip for each USB port,” he said.
“Our GaN technology is also being adopted in fixed USB wall outlets installed alongside AC outlets. Because spaces behind the wall is limited, these power supplies must be extremely compact. Limited space also allows for very little heat dissipation, making efficiency a critical factor,” he said.
“We expect consumer revenues to be roughly flat sequentially in Q3 with the inventory situation improving, but demand is still affected