Space-Saving Device Offers Low Max. RthJC of 0.36 °C/W and Wettable Flanks to Improve Thermal Performance and Solderability in Industrial Applications MALVERN, Pa., May 21, 2025 (GLOBE NEWSWIRE) -- To provide higher efficiency for industrial applications, Vishay Intertechnology, Inc. (NYSE: VSH) today introduced a new 80 V TrenchFET® Gen IV n-channel power MOSFET in the PowerPAK® 8x8SW bond wireless (BWL) package with best in class on-resistance. Compared to competing devices in the same footprint, the Vish ...

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1,450 million and non-GAAP earnings per share of $0.55, both exceeding the midpoint of guidance, with a non-GAAP gross margin of 40% [5][16] - Free cash flow increased by 72% year over year to $455 million, representing 31% of revenue [24][16] - GAAP gross margin was 20.3%, while non-GAAP gross margin was down 530 basis points sequentially and 590 basis points year over year [21][24] Business Line Data and Key Metrics Changes - Automotive revenue was $762 million, a sequential decline of 26%, while industrial revenue was $400 million, down only 4% sequentially [19][20] - Revenue for the Power Solutions Group (PSG) was $645 million, a decrease of 20% quarter over quarter, and for the Analog and Mixed Signal Group (AMG) it was $566 million, down 7% quarter over quarter [20] - The Intelligent Sensing Group (ISG) revenue was $234 million, a 23% decrease quarter over quarter [20] Market Data and Key Metrics Changes - The company noted early signs of stabilization in certain parts of the industrial market, with traditional industrial segments starting to recover [6][60] - Medical and Aerospace and Defense revenues increased sequentially, while AI data center revenue more than doubled year over year [8][19] Company Strategy and Development Direction - The company is focused on streamlining operations through a "fab right" approach and investing in R&D to deliver differentiated products [5][6] - The company aims to increase share repurchase to 100% of free cash flow for 2025, with approximately $1.5 billion remaining on the repurchase authorization [17][16] - The company is committed to building a solid foundation for future growth, particularly in the silicon carbide market, which is expected to ramp significantly in the coming years [9][91] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in the semiconductor market, particularly in automotive and industrial sectors [6][60] - The geopolitical environment remains uncertain, but the company expects minimal direct impact from current tariff policies [6][100] - Management anticipates Q2 revenue in the range of $1,400 million to $1,500 million, with non-GAAP gross margin expected between 36.5% and 38.5% [27][28] Other Important Information - The company reduced internal fab capacity by 12% as part of its manufacturing realignment program, which is expected to lower ongoing depreciation costs by approximately $22 million annually [18][19] - A company-wide restructuring initiative led to a 9% reduction in the global workforce, expected to generate approximately $25 million in savings in Q2 [18][19] Q&A Session Summary Question: Why is ON Semiconductor's revenue guidance flat compared to peers? - Management indicated that the difference is due to the specific end markets ON is exposed to, particularly in automotive EVs, which have not yet seen recovery outside of China [30][31] Question: What metrics should be used to think about gross margin moving forward? - Management stated that for every point of utilization increase, gross margin improves by 25 to 30 basis points, with expectations for improvement as the market recovers [32][34] Question: What has changed regarding pricing? - Management noted that the extended downturn has necessitated a more opportunistic pricing approach to defend and increase market share, rather than a return to previous pricing strategies [39][40] Question: Update on the non-core business exit plan? - Management confirmed the plan to exit the non-core business remains, with approximately $300 million expected to be exited this year, depending on market conditions [47][50] Question: Expectations for demand within the automotive segment by geography? - Management highlighted strength in the Chinese automotive market, particularly driven by EVs, with expectations for new models ramping in the second half of 2025 [76][78] Question: What is the outlook for silicon carbide growth? - Management remains bullish on silicon carbide, expecting to maintain and increase market share, particularly in the growing EV market in China [52][91]

Core Insights - Tower Semiconductor is participating in the 2025 Applied Power Electronics Conference (APEC) to showcase its advanced power management technology platform, particularly its 300mm 65nm 3.3V-based BCD solution aimed at Automotive, AI, Mobile PMIC, and Data Center applications [1][2]. Company Overview - Tower Semiconductor is a leading foundry specializing in high-value analog semiconductor solutions, providing technology and process platforms for various markets including consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense [4]. - The company offers a wide range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensors, and integrated power management solutions [4]. - Tower Semiconductor operates multiple facilities globally, including one in Israel, two in the U.S., and two in Japan, along with shared and accessed capacities in Italy and New Mexico [4]. Product Innovations - The company’s BCD platforms, including the 0.18μm (200mm) and 65nm (300mm) technologies, are designed for various applications such as driver ICs, battery management, and high-voltage gate drivers, enhancing power efficiency across sectors [2]. - Tower's recent advancements include a 3.3V gate oxide technology that supports both 3.3V and 5V-based solutions, along with a comprehensive suite of design enablement tools [2]. Event Participation - Dr. Mete Erturk, Sr. Director of Power Management Marketing, will present on Tower Semiconductor's BCD Technology Foundry Offerings at APEC 2025 on March 19, 2025 [3].