So what is the magic about that is that, the 1,200 volt is quite an important development because when you go to 1200 volts, you are in the silicon carbide world. And to the power level we can go to, which currently we think we can go to 10 kilowatts, we can replace silicon carbide in many applications. And in the longer term, we believe with some breakthroughs in GaN we could go to even higher power levels and potentially become a major competition to silicon carbide but at a very competitive but more important, much higher performance of silicon carbide. And that’s what is exciting about that. That 1,200 volt is a magic voltage where you are really getting into the silicon carbide world.
David Williams: Sure. Is that the same process that you’ve used on your lower voltage — your lower power? Or was there an architectural change to get to that 1,250 volt?
Balu Balakrishnan: Well, the fundamental device is the same, but obviously, there are a lot of innovations that get us to higher voltages. And as I said, we will be pushing it even higher voltages which we are very confident we can get to — and we’ve had a number of breakthroughs in that regard.
David Williams: Okay. Great. And just one last one real quick. What do you think the turns business looks like for — to hit the $90 million midpoint fare, Sandeep?
Sandeep Nayyar: Returns for this?
David Williams: In the low 20s.
Balu Balakrishnan: Low 20s.
Operator: And your next question comes from the line of Christopher Rolland from Susquehanna.
Christopher Rolland: Just given the kind of crazy inventory dynamics here, I was wondering if you can kind of maybe talk about the snapback when you think it might come broad thoughts on March versus seasonality or even if you could, kind of the slope for next year?
Balu Balakrishnan: That’s a great question. You’ve been asking about that within ourselves and our customers. And unfortunately, there is no clear answer from our customers. But from everything we know, we are optimistic that Q1 will be higher than Q4, but we don’t know by how much. And we are hoping that from that point onwards, it will continue to grow. And at some point, it has to come back. This is not — this is way below the trend line. I am surprised it’s taking so long to clear the inventory is obviously because the demand is low or well below where everybody was expecting it to be. the demand has to come back at some point. And I think when it comes back, we’ll be in a fantastic shape because we are continuing to win a lot of designs in lots of areas, as you’ve heard from us whether it’s electric vehicles or GaN-based solutions for industrial applications and so on and appliances with BridgeSwitch with appliances.
We have a lot of designs. And some of those designs have been delayed simply because of the inventory. They want to clear out the old products before they introduce new products. So many of these designs will go into production in Q ’24, and so we are optimistic that maybe the second half of ’24 will be the time when it will be it will come out strong. However, if it happens, we are always the first ones to come out of it. And I think we’ll come out very strongly just like we have done in the past downturns.
Christopher Rolland: Great. And perhaps another one for you. When I look at the kind of GaN market overall, I think the sweet spot is for right now, at least, is the high-volume consumer market. I think you guys were maybe doing $30 million or $40 million there at one point. What’s kind of stalled that here other than the macro? And when do you think we can get a meaningful kind of inflection there? And I think that was a part of maybe a gross margin story as well. If you want to talk a little bit more about gross margin. It was a little lighter this quarter and kind of how we should think about it a little further out?
Balu Balakrishnan: Let me talk about GaN and then Sandeep will address the gross margin part. Actually, we are continuing to expand GaN way beyond the mobile phones. We started with mobile because that’s the fastest to get it designed in. But we are seeing a significant interest and design wins in appliances, industrial markets, computer markets. It’s really going to replace silicon about 30 watts. We believe all of our new products I should say, most of our new products use GaN. And there’s a reason for that is because it is a better technology will compete very well with silicon within the next year or so. And so we are seeing a lot of interest even in markets I never thought would care about GaN, simply because of some of the advantages it brings.
