Vishay Intertechnology Inc (NYSE: VSH)

$38.51 ▲ +4.88 (+14.51%)

As of May 13, 2026 03:59 PM

Sector: Technology Industry: Semiconductors CIK: 0000103730

Market Cap 5.22 Bn

P/E -481.13

P/S 1.70

Div. Yield 0.00

ROIC (Qtr) 0.00

Total Debt (Qtr) 950.89 Mn

Revenue Growth (1y) (Qtr) 12.06

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About

Vishay Intertechnology, Inc. manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that support innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and healthcare markets. The company’s products include MOSFETs, diodes, optoelectronic components, resistors, inductors, and capacitors. Vishay serves customers worldwide under the brand promise of The DNA of tech.® Vishay generates revenue by selling its semiconductor and passive...

Vishay Intertechnology, Inc. manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that support innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and healthcare markets. The company’s products include MOSFETs, diodes, optoelectronic components, resistors, inductors, and capacitors. Vishay serves customers worldwide under the brand promise of The DNA of tech.®

Vishay generates revenue by selling its semiconductor and passive component products to original equipment manufacturers, electronic manufacturing services providers, and independent distributors. The company’s product mix consists of commodity, certified, and custom items, with commodity products representing approximately 26% of total revenue, certified products about 48%, and custom products around 26% for 2025. Sales are driven by demand for power control, signal processing, energy storage, and connectivity solutions across multiple end markets.

The company operates through the following segments.

• MOSFETs: This segment provides metal oxide semiconductor field effect transistors used for power control, power conversion, and power management in applications such as mobile phones, computers, televisions, solar inverters, and automotive and industrial systems. Vishay is a leader in low voltage TrenchFET and high voltage MOSFETs, offering products that serve both commodity and non commodity markets.

• Diodes: This segment offers diodes that route, regulate, and block radio frequency, analog, and power signals; protect systems from surges or electrostatic discharge damage; and provide electromagnetic interference filtering. Vishay holds a leading position in rectifiers, TVS diodes, and protection diodes, serving automotive, industrial, computing, and consumer markets with products that span commodity, certified, and custom categories.

• Optoelectronic Components: This segment supplies infrared emitters and detectors, optocouplers, solid state relays, optical sensors, light emitting diodes, seven segment displays, and infrared data transceiver modules. Vishay is a leading manufacturer of infrared remote control receivers and optocouplers, with products used in telecommunications, consumer electronics, solar inverters, and industrial systems, and all offerings are classified as either certified or custom.

• Resistors: This segment provides a broad range of resistor products that impede electric current and adjust voltage and current levels in electronic circuitry. Vishay maintains a leadership position in wire wound power shunts, leaded and thin film SMD resistors, power inductors, wet and polymer tantalum capacitors, and offers products ranging from commodity to custom with a strong focus on precision and specialty applications.

• Inductors: This segment manufactures inductors that impede electric current by using an internal magnetic field to change alternating current phase and resist alternating current. Vishay is a market leader with its patented IHLP low profile high current inductor technology, serving automotive, industrial, military, and healthcare markets with products that are predominantly certified or custom.

• Capacitors: This segment produces capacitors that store and discharge energy for filtering, timing, and conditioning applications across electronic circuits. Vishay holds a strong position in wet tantalum and MicroTan technologies, offering a product range from tiny surface mount devices to large power correction capacitors used in renewable energy, heavy industry, and electrical power grids, with most products classified as certified or custom.

Vishay holds a global technology leadership position in several product categories, including wire wound power shunts, leaded and thin film SMD resistors, power inductors, wet and polymer tantalum capacitors, power rectifiers, low voltage power MOSFETs, and infrared components. The company faces competition from firms such as Infineon, Nexperia, ON Semiconductor, Renesas, STMicroelectronics, and Toshiba in MOSFETs; Diodes Inc., Nexperia, ON Semiconductor, Rohm, and STMicroelectronics in diodes; Broadcom, ON Semiconductor, Renesas, and Toshiba in optoelectronics; Bourns, KOA, Murata, Panasonic, Rohm, TDK EPCOS, and Yageo in resistors; Bourns, Cyntec, Murata, Panasonic, Taiyo Yuden, TDK EPCOS, and Yageo in inductors; and Kyocera, Murata, Nichicon, Panasonic, Taiyo Yuden, TDK EPCOS, and Yageo in capacitors. Vishay’s competitive advantages stem from its broad product portfolio, strong research and development capabilities, extensive global manufacturing footprint, and long standing customer relationships that enable it to act as a reliable second source supplier.

Vishay sells its products to original equipment manufacturers, electronic manufacturing services companies, and independent distributors that maintain large inventories of electronic components for resale. The company’s top 30 customers account for approximately 74% of total net revenue, with no single customer exceeding 10% of sales in 2025. This diversified base spans the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and healthcare sectors.

Investment thesis

Bull case

Vishay’s recent earnings reveal a subtle yet significant shift in supply chain resilience that the market has largely overlooked. The company’s backlog has surged 14% quarter‑over‑quarter, translating to nearly five months of revenue coverage, a buffer that has only grown stronger during a period of global semiconductor shortages. While the company acknowledged a 1% ASP decline, the simultaneous 11% volume uptick and favorable currency impact demonstrate that pricing power is retained, especially in high‑margin silicon carbide (SiC) MOSFETs. This momentum, combined with a book‑to‑bill of 1.2, positions Vishay to capitalize on the expected rebound in industrial power and automotive electrification demand, suggesting revenue could accelerate beyond the modest 12% YoY growth already reported.
The strategic expansion of the 12‑inch fab in Germany and Taiwan, coupled with a backlog that is now 4.9 months of revenue, indicates that capacity constraints are being actively addressed. Management highlighted that over 10,000 new part numbers have been qualified under Vishay 3.0, broadening the product mix across semiconductors and passives. This aggressive portfolio expansion is likely to yield cross‑sell opportunities within existing OEM relationships, as customers increasingly look for consolidated sourcing. If the company can maintain its current lead‑time advantage during this build‑out, it can capture a larger share of the high‑growth AI and industrial power segments, which are projected to deliver mid‑single‑digit growth in 2026.
SiC MOSFET development is a critical catalyst that management underplayed in the call. The first trench MOSFET, Gen 3 1200‑volt, now offers automotive and AI markets a path to 800‑volt applications, a technology that competitors have been slower to deliver. This product, coupled with the new Gen 2 1200‑volt MOSFETs, positions Vishay to penetrate the rapidly expanding electric‑vehicle powertrain market, which is forecasted to grow at a CAGR of 30% over the next five years. The launch of these products aligns with the company’s commitment to “design‑in” capabilities for OEMs, a feature that should reduce switching costs and lock in long‑term contracts.
Revenue diversification across five growth segments—automotive electronics, industrial power, healthcare, aerospace/defense, and AI computing—provides a robust safety net. While automotive revenue dipped slightly due to holiday seasonary slowdown, industrial power and AI segments posted double‑digit volume growth. This mix suggests that downturns in one segment can be offset by resilience in others, reducing overall revenue volatility. Investors often focus on automotive alone, neglecting the company’s growing footprint in smart grid infrastructure and AI power modules that have shown sustained growth.
Vishay’s free cash flow turnaround—from negative $24 million in Q3 to positive $55 million in Q4—demonstrates effective working‑capital management. The company’s securitization of non‑US accounts receivable provided $62 million in liquidity, while inventory days dropped to 107, showing disciplined inventory control. This operational efficiency indicates that the firm can continue to fund its capital‑intensive 12‑inch fab build‑out while maintaining a solid cash generation base. Once the CapEx peak passes in 2026, free cash flow is projected to normalize, allowing for accelerated dividend growth or share buybacks.

Vishay’s recent earnings reveal a subtle yet significant shift in supply chain resilience that the market has largely overlooked. The company’s backlog has surged 14% quarter‑over‑quarter, translating to nearly five months of revenue coverage, a buffer that has only grown stronger during a period of global semiconductor shortages. While the company acknowledged a 1% ASP decline, the simultaneous 11% volume uptick and favorable currency impact demonstrate that pricing power is retained, especially in high‑margin silicon carbide (SiC) MOSFETs. This momentum, combined with a book‑to‑bill of 1.2, positions Vishay to capitalize on the expected rebound in industrial power and automotive electrification demand, suggesting revenue could accelerate beyond the modest 12% YoY growth already reported.
The strategic expansion of the 12‑inch fab in Germany and Taiwan, coupled with a backlog that is now 4.9 months of revenue, indicates that capacity constraints are being actively addressed. Management highlighted that over 10,000 new part numbers have been qualified under Vishay 3.0, broadening the product mix across semiconductors and passives. This aggressive portfolio expansion is likely to yield cross‑sell opportunities within existing OEM relationships, as customers increasingly look for consolidated sourcing. If the company can maintain its current lead‑time advantage during this build‑out, it can capture a larger share of the high‑growth AI and industrial power segments, which are projected to deliver mid‑single‑digit growth in 2026.
SiC MOSFET development is a critical catalyst that management underplayed in the call. The first trench MOSFET, Gen 3 1200‑volt, now offers automotive and AI markets a path to 800‑volt applications, a technology that competitors have been slower to deliver. This product, coupled with the new Gen 2 1200‑volt MOSFETs, positions Vishay to penetrate the rapidly expanding electric‑vehicle powertrain market, which is forecasted to grow at a CAGR of 30% over the next five years. The launch of these products aligns with the company’s commitment to “design‑in” capabilities for OEMs, a feature that should reduce switching costs and lock in long‑term contracts.
Revenue diversification across five growth segments—automotive electronics, industrial power, healthcare, aerospace/defense, and AI computing—provides a robust safety net. While automotive revenue dipped slightly due to holiday seasonary slowdown, industrial power and AI segments posted double‑digit volume growth. This mix suggests that downturns in one segment can be offset by resilience in others, reducing overall revenue volatility. Investors often focus on automotive alone, neglecting the company’s growing footprint in smart grid infrastructure and AI power modules that have shown sustained growth.
Vishay’s free cash flow turnaround—from negative $24 million in Q3 to positive $55 million in Q4—demonstrates effective working‑capital management. The company’s securitization of non‑US accounts receivable provided $62 million in liquidity, while inventory days dropped to 107, showing disciplined inventory control. This operational efficiency indicates that the firm can continue to fund its capital‑intensive 12‑inch fab build‑out while maintaining a solid cash generation base. Once the CapEx peak passes in 2026, free cash flow is projected to normalize, allowing for accelerated dividend growth or share buybacks.

Bear case

Vishay’s capital expenditure plan for 2026, ranging from $400 million to $440 million, will generate negative free cash flow for the year, constraining its ability to return capital to shareholders. The heavy investment in the 12‑inch fab, accounting for a significant portion of CapEx, is contingent on timely equipment deliveries that have already experienced delays. If these delays persist, the company risks falling short of production targets, which could force additional funding from debt or equity, diluting shareholder value and potentially eroding confidence.
While the company reported a 1% ASP decline, it is largely offset by rising material costs, especially metals, which continue to push upward. Management acknowledges that the price increase was necessary but also highlights the front‑loaded nature of these adjustments, implying that future ASP reductions may occur as contractual terms expire. If the market cannot sustain these higher prices, margins could compress further, eroding the current 19.6% gross margin and threatening the 19.9% guidance.
The Newport fab remains a persistent margin drag, contributing an estimated 130 basis points to the MOSFET segment’s margin decline. Although the drag has improved from 720 basis points in Q3, it is still significant and could recur if the facility does not reach operational maturity. Any re‑emergence of this drag would directly diminish the company’s profitability, especially as the segment is expected to grow in the coming years. Investors should be wary of a continued loss of margin from an internal production bottleneck.
Vishay’s backlog growth, while encouraging, is largely driven by Asia, a region still vulnerable to geopolitical tensions and supply chain disruptions. The company’s heavy reliance on the 12‑inch fab in Germany and Taiwan makes it susceptible to regional manufacturing constraints, political instability, or regulatory changes. Any slowdown in these facilities could cascade into production delays, leading to missed orders and a potential erosion of market share.
The automotive segment, although showing share gains, remains flat or slightly negative due to holiday slowdowns and a 3.4% revenue decline. Management's optimistic outlook for automotive content may not materialize if OEMs delay electrification programs or if competitors secure more favorable supply agreements. Additionally, the company’s share gains are currently limited to a “small” scale, with the ramp‑up expected only beyond Q3. This modest upside suggests that automotive revenues may not be a reliable driver of growth in the near term.

Vishay’s capital expenditure plan for 2026, ranging from $400 million to $440 million, will generate negative free cash flow for the year, constraining its ability to return capital to shareholders. The heavy investment in the 12‑inch fab, accounting for a significant portion of CapEx, is contingent on timely equipment deliveries that have already experienced delays. If these delays persist, the company risks falling short of production targets, which could force additional funding from debt or equity, diluting shareholder value and potentially eroding confidence.
While the company reported a 1% ASP decline, it is largely offset by rising material costs, especially metals, which continue to push upward. Management acknowledges that the price increase was necessary but also highlights the front‑loaded nature of these adjustments, implying that future ASP reductions may occur as contractual terms expire. If the market cannot sustain these higher prices, margins could compress further, eroding the current 19.6% gross margin and threatening the 19.9% guidance.
The Newport fab remains a persistent margin drag, contributing an estimated 130 basis points to the MOSFET segment’s margin decline. Although the drag has improved from 720 basis points in Q3, it is still significant and could recur if the facility does not reach operational maturity. Any re‑emergence of this drag would directly diminish the company’s profitability, especially as the segment is expected to grow in the coming years. Investors should be wary of a continued loss of margin from an internal production bottleneck.
Vishay’s backlog growth, while encouraging, is largely driven by Asia, a region still vulnerable to geopolitical tensions and supply chain disruptions. The company’s heavy reliance on the 12‑inch fab in Germany and Taiwan makes it susceptible to regional manufacturing constraints, political instability, or regulatory changes. Any slowdown in these facilities could cascade into production delays, leading to missed orders and a potential erosion of market share.
The automotive segment, although showing share gains, remains flat or slightly negative due to holiday slowdowns and a 3.4% revenue decline. Management's optimistic outlook for automotive content may not materialize if OEMs delay electrification programs or if competitors secure more favorable supply agreements. Additionally, the company’s share gains are currently limited to a “small” scale, with the ramp‑up expected only beyond Q3. This modest upside suggests that automotive revenues may not be a reliable driver of growth in the near term.

Customer Type Breakdown of Revenue (2025)

Income Tax Authority Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductors

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	NVDA	Nvidia Corp	5,501.97 Bn	45.82	25.48	8.47 Bn
2	AVGO	Broadcom Inc.	1,974.20 Bn	78.72	28.91	66.06 Bn
3	MU	Micron Technology Inc	903.51 Bn	37.39	15.55	10.14 Bn
4	AMD	Advanced Micro Devices Inc	728.95 Bn	168.11	21.04	3.22 Bn
5	INTC	Intel Corp	611.13 Bn	-190.84	11.37	45.03 Bn
6	TSM	Taiwan Semiconductor Manufacturing Co Ltd	335.02 Bn	0.02	2.86	5.70 Bn
7	TXN	Texas Instruments Inc	278.36 Bn	52.17	15.10	14.05 Bn
8	QCOM	Qualcomm Inc/De	227.34 Bn	22.76	6.48	0.50 Bn

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