Vishay Intertechnology (VSH) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic transformation and business model evolution

• Transitioned from a conservative, cash-focused model to "Vishay 3.0," emphasizing growth, margin expansion, and customer engagement, with expanded R&D and broader customer focus.

• Expanded capacity by 70% over three years, investing nearly $1 billion in CapEx, including new fabs in Germany and the UK, and shifting production to lower-cost countries.

• Strategic growth levers include internal and external capacity expansion, manufacturing optimization, technical headcount increases, and M&A.

• Broadened product portfolio and enhanced channel management to serve a wider market, prioritizing high-margin channels and point-of-sale acceleration.

• Enhanced R&D and innovation, achieving technology parity in silicon carbide and GaN products, and broadening the passive portfolio for high-frequency and AI applications.

Financial performance and targets

• Achieved year-on-year growth across all markets: 22% in industrial, 26% in AI/computer/telecom/consumer, 11% in automotive, 17% in aerospace defense, and 11% in healthcare.

• Q1 2026 revenues reached $839.2M with a gross margin of 21.0% and EPS of $0.05; book-to-bill ratio at 1.34 overall, with 1.47 for semiconductors and 1.23 for passives.

• Distribution and EMS channels grew 19% and 22% respectively, with OEM up 14%; all regions showed double-digit growth except Asia, which was impacted by seasonality.

• Targeting $5 billion in annual revenue by 2028–2029, up from $3.5 billion, with margin expansion driven by manufacturing efficiencies, new product mix, and cost savings.

• Investor Day 2024 goals for 2028 include 9–11% CAGR, 25–27% adjusted EBITDA margin, ≥14% ROIC, and capital intensity to decrease from 9.7% in 2023 to 6–7% by 2028.

Customer and channel initiatives

• Proactively repaired and strengthened customer relationships, leading to increased engagement and access to customer technical roadmaps.

• Won significant share in smart grid and industrial projects by investing in passive capacity and collaborating with major industry players.

• Developed reference designs and system solutions to accelerate customer adoption and support 80% of components in power applications.

• Enhanced channel management and incentivized partners for demand creation, with a focus on education and technical support for engineers.

• Increased technical headcount globally to better align with customer needs and drive innovation.