Vishay Intertechnology, Inc. (VSH): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where Vishay Intertechnology, Inc. (VSH) is placing its bets and where it's simply harvesting cash as of late 2025, so here's the quick math on their portfolio using the BCG framework: Stars like AI power components and high-margin inductors boasting a 28.0% gross margin are fueling growth, while the core business reliably generates cash to support that steady $0.10 dividend. Still, you can't ignore the big risks: heavy investment in Silicon Carbide is contributing to a $(73.2) million negative non-GAAP free cash flow in Q2 2025, and legacy MOSFET margins have defintely slumped to just 6.3%. Keep reading to see precisely which product lines are poised to dominate and which ones are dragging down the overall performance.

Background of Vishay Intertechnology, Inc. (VSH)

You're looking at Vishay Intertechnology, Inc. (VSH), which is a key player in the electronics world, manufacturing a massive range of discrete semiconductors and passive electronic components. Honestly, these parts are the DNA of tech, as they put it, essential for everything from your car to the cloud. Headquartered in Malvern, Pennsylvania, Vishay Intertechnology, Inc. got its start way back in 1962 and is listed on the New York Stock Exchange.

The company structures its operations across six main segments, which gives you a good idea of its breadth. These are MOSFETs (Metal Oxide Semiconductor Field Effect Transistors), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors. Vishay Intertechnology, Inc. serves a wide spectrum of end markets, including industrial, automotive, computing, telecommunications, aerospace, and medical sectors. They've built a significant global manufacturing footprint to support this diverse customer base.

To give you a sense of scale as of late 2025, Vishay Intertechnology, Inc. reported net revenues of $790.6 million for the third quarter of fiscal year 2025, achieving a gross profit margin of 19.5% in that period. They employ around 22,700 people globally, and under CEO Joel Smejkal, they're deep into capital spending, planning to invest between $300 million to $350 million in 2025 alone, mostly focused on expanding capacity for high-growth product lines. Still, you should note their book-to-bill ratio in Q3 2025 was slightly below parity, suggesting a bit of a slowdown in new orders relative to shipments.

Vishay Intertechnology, Inc. (VSH) - BCG Matrix: Stars

You're looking at the segment leaders for Vishay Intertechnology, Inc. (VSH) as of the third quarter of 2025. These areas show strong market position in growing markets, demanding capital to maintain that lead.

The overall company posted revenues of $762.3 million in the second quarter of 2025, with a book-to-bill ratio of 1.02, indicating orders were slightly outpacing shipments. By the third quarter of 2025, revenues reached $790.6 million.

Here are the specific product areas fitting the Star profile based on the latest available segment data:

• AI power components, aligning with markets showing revenue growth in the third quarter of 2025.
• Inductors, which delivered the highest gross margin at 28.0% in Q2 2025.
• Capacitors, showing strong forward demand with a Q2 2025 book-to-bill ratio of 1.40.
• Advanced power resistors for high-growth EV and smart grid infrastructure applications, a market driving sequential revenue growth of 7% in Q2 2025.

The company is actively supporting these areas, having invested approximately $775 million since 2023 to add capacity for high-growth, higher-profit products.

Here's a quick look at the component performance metrics from the second quarter of 2025:

The overall company gross margin for Q2 2025 was 19.5%. For the third quarter of 2025, the adjusted Earnings Per Share (EPS) was $0.04.

The backlog at the end of Q2 2025 stood at 4.6 months, increasing from the previous quarter. By the end of Q3 2025, the backlog was 4.4 months.

Vishay Intertechnology, Inc. (VSH) - BCG Matrix: Cash Cows

You're looking at the bedrock of Vishay Intertechnology, Inc.'s operations, the business units that reliably fund the rest of the portfolio. These are the mature, high-market-share products that generate more cash than they need for maintenance. The focus here is on efficiency and milking the gains passively, not aggressive growth spending.

The broad portfolio of passive components represents a stable core business, which is exactly what you want in a Cash Cow segment. For the second quarter of 2025, the book-to-bill for passive components stood at a healthy 1.06. This indicates that orders are slightly outpacing shipments, a sign of sustained, albeit mature, demand. For context, the overall company book-to-bill for Q2 2025 was 1.02. This segment's stability is key to covering corporate overhead.

The established, high-volume commodity components are a significant part of this cash generation engine. These products represent exactly 27% of the total revenue mix as reported for Q2 2025. Based on the Q2 2025 revenue of $762.3 million, this translates to approximately $205.8 million in quarterly revenue from these mature offerings. Investments here are targeted at infrastructure to improve efficiency, not broad market promotion.

This reliable cash flow directly supports the shareholder commitment. Vishay Intertechnology, Inc. has maintained its quarterly dividend at $0.10 per share. That's a consistent payout that stockholders have relied on for 12 consecutive years. This commitment signals management's confidence in the underlying, predictable earnings power of these established product lines.

Legacy diodes and rectifiers fit squarely into this Cash Cow profile, providing reliable revenue streams across the industrial and consumer markets Vishay Intertechnology, Inc. serves. While the specific revenue percentage for this sub-segment isn't explicitly broken out against the 27% commodity figure, their nature as high-volume, established parts confirms their role as cash generators rather than growth drivers.

Here are the key metrics supporting the Cash Cow assessment for the passive component segment as of Q2 2025:

The Cash Cow strategy for Vishay Intertechnology, Inc. involves maintaining productivity in these areas while directing capital elsewhere. You should see the following characteristics:

• Broad portfolio providing stable revenue base.
• Commodity revenue contribution of 27%.
• Dividend support at $0.10 per share.
• Passive segment B/B ratio of 1.06.
• Backlog supporting future stability at 4.6 months.

The goal here is to 'milk' the gains passively, ensuring operational excellence keeps costs low. Finance: draft 13-week cash view by Friday.

Vishay Intertechnology, Inc. (VSH) - BCG Matrix: Dogs

You're looking at the units that are tying up capital without delivering meaningful returns, the classic Dogs quadrant for Vishay Intertechnology, Inc. These are the businesses where low market share meets low market growth, and frankly, they demand a hard look at divestiture or severe cost reduction.

The performance indicators for these lower-tier product groups in the first half of 2025 definitely point to this classification. Consider the specific pressure points:

• Legacy MOSFETs, where gross margin fell sharply to 6.3% in Q2 2025 due to pricing pressure.
• Certain standard discrete semiconductors, reflected by the overall segment's Q2 2025 book-to-bill ratio of 0.98.
• Older, commoditized product lines facing intense competition and low-to-no market growth.
• Products tied to flat capital projects in Europe and the Americas, showing slow demand in 2025.

The overall semiconductor segment's book-to-bill of 0.98 in Q2 2025 clearly shows that, on average, shipments outpaced new orders for that part of the business, which is a hallmark of a low-growth/low-share area unless it's a temporary inventory correction. This contrasts with the passive components side, which posted a 1.06 book-to-bill ratio in the same period.

Here's a quick look at the financial snapshot that frames the challenge these units present to Vishay Intertechnology, Inc.'s overall profitability:

The issue with these units is that expensive turn-around plans rarely work out; the capital is better deployed elsewhere. For example, while the broader MOSFET category saw revenue of $167.1 million in Q3 2025 (up 13.6% year-over-year), the older, legacy products within that category are the ones dragging the margin down to that reported 6.3% figure.

You see the cash trap clearly when you look at the balance sheet health relative to operations. Vishay Intertechnology, Inc. ended Q2 2025 with Cash and cash equivalents at $473.9 million, down from $590.3 million at the end of 2024, a direct result of negative free cash flow. The backlog stood at $1.2 billion, covering 4.6 months of revenue, but the composition of that backlog matters; slow-moving product lines contribute little to margin expansion.

Even with management guiding Q3 2025 revenues to a range of $775 million +/- $20 million, the expectation for the gross margin to only reach 19.7% +/- 50 basis points shows that the margin pressure from these Dog categories is persistent. You can't easily fix a structural market share problem with a new product launch if the market itself isn't growing.

The core problem is the cash tied up in inventory and assets supporting these low-return lines. Consider these associated metrics:

• Total Assets as of late 2025 were $4,195.98 million.
• Long-term debt stood at $914.5 million at the end of Q2 2025.
• The company is continuing capacity expansion, with planned capex of $300 million to $350 million for 2025.

Finance: draft 13-week cash view by Friday.

Vishay Intertechnology, Inc. (VSH) - BCG Matrix: Question Marks

You're looking at the new technologies Vishay Intertechnology, Inc. is pushing into high-growth areas, which, by definition, are burning cash now while fighting for market share. These are the classic Question Marks-high potential, high current cost.

The primary focus here is the push into Silicon Carbide (SiC) MOSFETs and power modules. This is a rapidly expanding market, especially for electric vehicle (EV) systems, but it demands heavy capital outlay to build the necessary capacity. This investment strategy is clearly reflected in the company's cash flow statement.

For the second quarter of 2025, Vishay Intertechnology, Inc. reported a negative non-GAAP free cash flow of $(73.2) million. This negative flow is directly tied to the need to fund growth, with capital expenditures reaching $64.6 million in Q2 2025, as the company continues capacity expansion for these next-generation technologies. Honestly, negative free cash flow is the price of admission for these high-growth bets.

The integration of the Newport facility is a current headwind that is masking the underlying performance of the core business. In Q3 2025, the gross margin stood at 19.5 percent, which included an approximate 150 basis point negative impact related to these Newport operations. Management's guidance for Q4 2025 suggests this drag will persist, projecting a negative impact of approximately 150 to 175 basis points on the gross profit margin. This integration cost is a significant drain on profitability, aligning with the description of Question Marks consuming cash.

The high-reward aspect of this quadrant is the product innovation aimed at capturing future market share. Vishay Intertechnology, Inc. launched two new 1200 V SiC MOSFET power modules, the VS-MPY038P120 and VS-MPX075P120, on December 3, 2025. These are explicitly designed for 800V EV systems, among other high-growth areas like solar inverters and industrial power supplies. This is a clear, targeted investment to gain share in a market where the technology is still evolving.

Here's a quick look at the specs of these new Question Mark products:

• New 1200 V SiC MOSFET power modules launched on December 3, 2025.
• Target applications include EV chargers for 800V systems.
• VS-MPY038P120 features 38 m$\Omega$ on-resistance and 35 A continuous current at $+80\circ$C.
• VS-MPX075P120 features 75 m$\Omega$ on-resistance and 18 A continuous current.
• Both modules support a high maximum operating junction temperature of $+175\circ$C.

The financial reality of these investments is summarized below, showing the cash burn alongside the recent performance metrics that are being impacted by the required capacity build-out and integration efforts.

Vishay Intertechnology, Inc. is betting that these SiC products will quickly transition from Question Marks to Stars by rapidly gaining market share in their high-growth segments. Finance: review Q4 2025 capex forecast against the Newport integration timeline.