Vishay Intertechnology, Inc. (VSH): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Vishay Intertechnology, Inc. (VSH) as we head into late 2025, past the usual marketing fluff. Honestly, their game right now is a tightrope walk: funding a massive $300 to $350 million capital expansion plan-focused heavily on advanced tech like SiC MOSFETs-while managing a massive base business that clocked in at $2.98 billion in trailing revenue as of Q3 2025. This canvas breaks down exactly how they're using their global footprint and IP to serve everything from AI servers to EVs, all while keeping SG&A tight around $540 to $560 million this year. If you want to see the precise structure supporting this high-stakes pivot-from their key partnerships with Tier 1s to their single-source value proposition-dive into the nine blocks below.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Key Partnerships

You're looking at how Vishay Intertechnology, Inc. builds its market presence through key external relationships as of late 2025. It's all about securing design wins and managing capacity effectively.

Strategic alliances with Tier 1 automotive suppliers like DENSO

The relationship with top-tier automotive players remains critical for Vishay Intertechnology, Inc. This isn't just about selling parts; it's about being recognized as a core technology enabler. For instance, Vishay Intertechnology received DENSO's 2025 North America Business Partner Award in the Value Leader Category on July 29, 2025. This award specifically recognized Vishay for consistently proposing innovative components that enhance DENSO's designs and for providing exceptional supplier support. That kind of validation helps secure future design-ins across the mobility sector.

Global network of third-party electronic component distributors

Vishay Intertechnology relies heavily on its global distribution channel to reach a broad customer base, from small design houses to large-scale manufacturers. The global electronic component distribution market itself is projected to hit approximately USD 418.2 billion in 2025. Vishay works with major players who manage significant inventory and logistics. For example, Future Electronics, recognized as Vishay's 2024 Semiconductor Distributor of the Year, generates around \$5 billion in annual revenue. Vishay Intertechnology, Inc. is an active ECIA Member as of 2025. Here's a look at the scale of the ecosystem they tap into:

• The global electronic component distribution market size for 2025 is projected to be USD 418.2 billion.
• Key distribution partners help manage Vishay's comprehensive portfolio of semiconductors and passive components.
• Vishay's Q2 2025 results showed sequential revenue growth delivered to distributors and EMS customers.

Collaborations with OEMs and EMS providers for design-in support

Securing a component early in the Original Equipment Manufacturer (OEM) design cycle is where the real value is locked in. Vishay Intertechnology's Q3 2025 revenue growth demonstrated alignment with high growth markets, including automotive, and the company specifically noted growth delivered to EMS customers (Electronic Manufacturing Services providers). This suggests their design-in support efforts with these partners are translating directly into booked business as the market gradually recovers.

Technology partnerships for advanced materials like Silicon Carbide (SiC)

To capture growth in high-power, high-efficiency applications like electric vehicles, Vishay Intertechnology is making significant, targeted investments, often in partnership with regional technology clusters. The company announced a major $\text{£250m}$ investment into its Newport facility, which specializes in Silicon Carbide semiconductors. Production ramp-up at this facility is on schedule for early 2026. Furthermore, Vishay showcased its latest SiC technology, including the 1200 V MaxSiC™ series silicon carbide (SiC) MOSFETs, at APEC 2025. This focus on advanced materials is supported by strategic location investments:

Outsourcing commodity product manufacturing to free up internal capacity

As part of the 'Vishay 3.0' strategy, the company is optimizing its global footprint by consolidating production. This involves closing smaller, single-product line facilities and transferring production to larger campus-like sites, which began in phases starting in Q4 2025. This move is designed to reach growth and financial targets at a lower cost. The restructuring is defintely impacting labor and costs:

• Three manufacturing facilities are slated for closure by the end of 2026: one in Shanghai, China (Diodes segment back-end), and two small Resistors segment facilities in Fichtelberg, Germany, and Milwaukee, Wisconsin.
• This results in a planned reduction of direct labor by approximately 365 employees, which is 2% of the total manufacturing labor workforce.
• The company expects to realize annualized cost savings of at least \$23 million once the program is fully implemented by the end of 2026.
• The company expected to incur pre-tax cash charges of approximately \$38 million to \$42 million, mostly in Q3 2024, related to severance.

Finance: draft 13-week cash view by Friday.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Key Activities

You're managing a global component supplier, so your key activities must balance massive scale with targeted innovation. Here's how Vishay Intertechnology, Inc. (VSH) structures its core operations as of late 2025.

High-volume, global manufacturing of discrete semiconductors and passives

Vishay Intertechnology, Inc. operates as one of the world's largest manufacturers in this space. The sheer volume requires continuous capacity management. For instance, second quarter 2025 revenues hit $762.3 million, and management guided third quarter 2025 revenues to a range of $775 million +/- $20 million. To support this, the backlog dollar amount increased to $1,200,000,000 at the end of Q2 2025, representing 4.6 months of coverage. The company is actively expanding its global footprint; a site in India was added as a manufacturing location, with start shipment dates beginning October 8, 2025, to increase total production capacity and flexibility.

The scale of operations and order health can be seen in the book-to-bill metrics:

R&D focused on high-growth products like SiC MOSFETs and high-voltage capacitors

Research and development is heavily weighted toward electrification megatrends. Vishay Intertechnology, Inc. is aggressively pushing its Silicon Carbide (SiC) strategy. They released new 1200 V SiC MOSFET power modules on December 3, 2025. The company has a portfolio roadmap for 650 V to 1700 V SiC MOSFETs with on-resistances spanning from 10 mΩ to 560 Ω. Specific new products include the 1200 V MaxSiC™ series SiC MOSFETs, offering on-resistances of 45 mΩ, 80 mΩ, and 250 mΩ in standard packages. One of the new modules, the VS-MPX075P120, features an on-resistance of 75 mΩ and an 18 A continuous drain current. Furthermore, custom products are a key focus, representing a significant 49% of total revenue in 2025.

Key R&D and Product Focus Areas:

• 12 new 1,200-volt planar products slated for release in fiscal year 2025.
• High-voltage film capacitors capable of operation up to +125 °C.
• SiC platform based on proprietary MOSFET technology from the MaxPower Semiconductor, Inc. acquisition.
• Focus on applications like traction inverters, photovoltaic energy storage, and charging stations.

Executing the $300-$350 million 2025 capital expansion plan

The commitment to future capacity is clear through planned spending. Vishay Intertechnology, Inc. plans to spend between $300 million to $350 million for capital expenditures in 2025. A critical component of this is that at least 70% of this amount is earmarked for capacity expansion projects targeting high-growth product lines, which includes wafer fab expansions. This 2025 spending fits into a larger, long-term commitment of approximately $2.6 billion in capital investment planned between 2023 and 2028.

Maintaining a broad product portfolio for one-stop-shop procurement

The strategy involves maintaining a wide array of components to serve as a single source for customers. For example, at a recent industry event, Vishay's components, including their latest SiC MOSFETs and diodes, accounted for 70% or more of the Bill of Materials (BOMs) in displayed reference designs. This breadth covers both discrete semiconductors and passive components, supporting major trends like AI server power and e-mobility.

Continuous process improvement to manage cost of products sold

Process optimization is key to navigating margin pressures, such as the negative impact from the Newport facility ramp, which was approximately 160 basis points in Q2 2025. The company is implementing restructuring actions to optimize its manufacturing footprint. These actions are designed to realize annualized cost savings of at least $23 million by the end of 2026. Specifically, approximately $12 million of these savings are expected to be in selling, general and administration expenses, with approximately $12 million in annualized cost savings expected to begin in 1Q 2025. The streamlining of SG&A functions through 4Q 2025 involves severance payments to approximately 170 employees, which is 6% of the SG&A workforce.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Key Resources

You're looking at the core assets Vishay Intertechnology, Inc. (VSH) relies on to deliver its value proposition. These aren't just line items; they are the physical and intellectual foundations of their business, especially as they push through the Vishay 3.0 strategy.

Extensive portfolio of discrete semiconductors and passive components

Vishay Intertechnology, Inc. is one of the world's largest manufacturers of discrete semiconductors and passive electronic components. The company's portfolio is broad, serving markets like automotive, industrial, computing, and medical. For instance, in $\text{Q2 2025}$, the passive components segment showed a book-to-bill ratio of $\text{1.06}$, indicating healthy order flow for those products. The trailing twelve months ($\text{TTM}$) revenue as of late $\text{2025}$ was reported at $\text{\$2.98 Billion USD}$.

The continuous development of this portfolio is evident through new product introductions throughout $\text{2025}$. Here are some examples of the technology underpinning the resource base:

• $\text{1200 V MaxSiC™}$ series silicon carbide ($\text{SiC}$) $\text{MOSFETs}$ with on-resistances of $\text{45 mΩ}$, $\text{80 mΩ}$, and $\text{250 mΩ}$.
• A portfolio roadmap for $\text{SiC}$ $\text{MOSFETs}$ ranging from $\text{650 V}$ to $\text{1700 V}$ with on-resistances from $\text{10 mΩ}$ to $\text{560 Ω}$.
• Power Metal Strip${\text{®}}$ resistors capable of handling power up to $\text{9 W}$ and shunts with a low temperature coefficient of resistance ($\text{TCR}$) down to $\text{< ± 10 ppm/°C}$.
• $\text{T55 vPolyTan™}$ polymer tantalum chip capacitors featuring ultra-low equivalent series resistance ($\text{ESR}$).

Global manufacturing footprint across the US, Europe, and Asia

Vishay Intertechnology, Inc. maintains a significant global manufacturing presence, with plants located in Israel, Asia, Europe, and the Americas. This footprint is currently undergoing optimization under the Vishay 3.0 strategy. As of the end of $\text{2024}$, the company employed approximately $\text{22,700}$ full-time employees. The restructuring plan, which involves production transfers beginning in $\text{Q4 2025}$, includes the planned closure of facilities in Milwaukee, Wisconsin ($\text{US}$), Fichtelberg ($\text{Germany}$), and Shanghai ($\text{China}$) by the end of $\text{2026}$. Conversely, expansion is noted in Mexico and other European sites.

The manufacturing footprint is characterized by a mix of component types across different regions:

Intellectual Property (IP) and patents for foil resistors and new SiC technology

The company's competitive edge is heavily tied to its proprietary technology, particularly in specialized resistors and advanced power semiconductors. For instance, the $\text{SiC}$ platform is based on proprietary $\text{MOSFET}$ technology gained through the acquisition of MaxPower Semiconductor, Inc.

Regarding foil resistors, the manufacturing process involves precise steps to achieve final values, which is protected IP. The process includes:

• Bonding an annealed thin metallic foil to an insulating substrate.
• Etching the foil using photographic artwork to form the circuit pattern.
• Adjusting the resistor value by etching the thickness of the circuit pattern.
• Final adjustment accomplished by using a laser beam to cut a slot in the circuit pattern.

Dedicated Field Application Engineers (FAEs) for technical customer support

Vishay Intertechnology, Inc. is actively increasing its technical resources to drive design-ins and support customer needs. As part of its strategy, the company is focusing on adding additional customer-facing engineers. This focus is intended to better understand technical product needs and develop reference designs using the company's broad product portfolio. For example, at $\text{PCIM Asia 2025}$, Vishay was showcasing reference designs tailored for $\text{AI}$ infrastructure and electric vehicles ($\text{EV}$).

Newport wafer fab capacity for advanced semiconductor production

The acquisition of the Newport wafer fab (now Vishay Newport) was a $\text{\$177 million}$ cash transaction. This facility is the $\text{UK}$'s largest semiconductor fab. The fab is an automotive-certified, $\text{200mm}$ wafer fab. Its existing capacity is stated to be over $\text{30,000}$ wafers per month.

This site is central to the company's $\text{SiC}$ expansion, with a planned investment of $\text{£250 million}$, partly supported by the government's Automotive Transformation Fund ($\text{ATF}$), to develop large-scale compound semiconductor manufacturing, specifically $\text{SiC}$ devices. The $\text{Q2 2025}$ gross margin was negatively impacted by approximately $\text{160 basis points}$ due to the Newport addition.

Finance: review the $\text{Q3 2025}$ revenue guidance of $\text{\$755-795 million}$ against the $\text{Q2 2025}$ actual revenue of $\text{\$762.3 million}$ to assess near-term operational performance.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Vishay Intertechnology, Inc. (VSH) over competitors, especially as the market for high-reliability electronics heats up. It's not just about selling parts; it's about being the essential partner for complex designs.

Single-source supplier for a broad line of essential electronic components

Vishay Intertechnology, Inc. positions itself as one of the world's largest manufacturers of discrete semiconductors and passive electronic components. This breadth means they can cover a significant portion of a customer's needs from one vendor. For instance, the company claims the ability to provide approximately 80% of the Bill of Materials (BOM) specifically in power applications. This comprehensive offering simplifies procurement and integration for design engineers.

The product portfolio is strategically segmented, showing a clear focus on high-value areas:

The trailing twelve months (TTM) revenue as of late 2025 stood at $2.98 Billion USD, demonstrating the scale at which this broad portfolio operates.

High-quality, reliable components for mission-critical applications (e.g., medical, military)

Reliability is non-negotiable when you're supplying components for sensitive systems. Vishay Intertechnology, Inc. components are used in virtually all types of electronic devices, specifically targeting the industrial, automotive, medical, and military/aerospace markets. The focus on these demanding sectors underscores the value placed on component quality and longevity. For example, the company is supplying components for aerospace, defense projects, and automotive programs.

This commitment to high-reliability is supported by operational milestones, such as the certification of a new factory in Mexico to the IATF 16949:2016 standard on December 2, 2025. The third quarter of 2025 revenue of $790.6 million was achieved while serving these critical end-markets.

Innovation in high-efficiency power solutions for EV and AI infrastructure

Vishay Intertechnology, Inc. is actively aligning its innovation pipeline with the highest-growth areas in modern electronics, particularly power management. The Q3 2025 revenue growth specifically demonstrates alignment with AI related power requirements, smart grid infrastructure, and automotive needs. The company is focused on enabling these systems through advanced component technology.

Concrete examples of this innovation include:

• Releasing three new silicon carbide MOSFET products.
• Planning further platform launches for industrial and automotive applications in Q4 and Q1.
• Releasing a 1500 V 1 Form A Solid-State Relay for 800 V Battery Monitoring Systems.

The ramp in AI demand is significant; shipments for AI-related components more than doubled versus Q4 2024, driven by leveraging power component positions like MOSFETs, diodes, and inductors.

Custom product design and engineering support (representing 49% of revenue)

This is a major differentiator. Custom solutions are the largest revenue driver for Vishay Intertechnology, Inc., making up 49% of total revenue as of Q2 2025. This isn't just about off-the-shelf sales; it's about deep engineering collaboration. The company works with chipset partners and Contract Manufacturers (CMs) using reference designs to place a greater percentage of Vishay components on the board. This high percentage confirms that a significant portion of the business is built on tailored, value-added engineering services, not just commodity sales.

Supply chain resilience via a multi-location, global production base

To support the high-growth markets and the need for reliable delivery, Vishay Intertechnology, Inc. has heavily invested in its production base. The CEO noted that heavy investments in capacity expansion over the past three years are enabling the company to reliably meet quick turn delivery requirements. This global footprint supports the ability to serve regions like Asia, which contributed 42% of total revenue in Q2 2025.

The company is actively expanding this base. For example, a new factory in Mexico achieved IATF 16949:2016 certification in December 2025. Furthermore, the book-to-bill ratio for passive components stood at 1.06 in Q2 2025, indicating that orders are outpacing shipments in that segment, a sign of healthy demand being met by production capacity.

Finance: draft 13-week cash view by Friday.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Customer Relationships

You're looking at how Vishay Intertechnology, Inc. (VSH) keeps its component sales flowing, which really boils down to a mix of deep technical engagement and broad transactional reach. The company's core strategy here is to be the indispensable supplier, the one they call first for critical parts.

Dedicated technical support and design-in assistance via FAEs

Vishay Intertechnology maintains direct technical engagement, which is key for complex, high-reliability components. While specific Field Application Engineer (FAE) headcount isn't public, the focus on design-in success is clear in their stated goals. They actively work to create design opportunities that increase their print position at customers, targeting a significant share of the design specification.

• Targeting 80% of the bill of materials (BOM) in power applications for design-in wins.
• The company provides direct contact points for technical support across product categories.
• This support underpins their broad product line strategy, aiming for "one-stop shop" service for customers.

Strategic, long-term partnerships with key OEM customers

The relationship with major Original Equipment Manufacturers (OEMs) is built on serving high-growth, high-reliability markets. Vishay Intertechnology's strategy involves positioning itself for megatrends like electrification and data communications by expanding capacity for high-growth product lines. This long-term view is reflected in the performance of their key end markets as of Q2 2025.

Here's a look at the sequential revenue growth in key end markets during the second quarter of 2025:

The company is actively working to re-engage previously underserved and inactive customers as part of these growth initiatives. They invested approximately $775 million over the past 2.5 years to add capacity specifically for these high-growth areas.

Transactional relationships managed through global distribution channels

A significant portion of Vishay Intertechnology's business flows through distribution, which handles more transactional, volume-based sales. This channel performed strongly in the first half of 2025, indicating healthy inventory replenishment and broader market acceptance.

The distribution channel's contribution to the overall business is substantial:

• Distribution channels contributed 56% of total revenue in Q2 2025.
• This channel saw 11% sequential growth and 5% year-over-year growth in Q2 2025.
• The distribution revenue increase was supported by adding nearly 50,000 SKUs to inventory to reduce channel inventory weeks.

Overall, the company's Q2 2025 revenue was $762.3 million, showing growth across all channels. The Trailing Twelve Month (TTM) revenue as of late 2025 stands at nearly $2.98 Billion USD.

Cross-selling initiatives to increase share of customer's bill of materials

Vishay Intertechnology leverages its broad portfolio-offering both discrete semiconductors and passive components-to drive deeper penetration within existing customer designs. This is the essence of cross-selling for them: getting more of their parts designed into a single system. They are focused on expanding their technology breadth to serve customer demand more fully. This effort is directly tied to their design-in goal, aiming to capture a larger percentage of the total component spend in key power applications.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Channels

You're looking at how Vishay Intertechnology, Inc. gets its components-from power MOSFETs to capacitors-into the hands of the engineers building the next generation of tech. The channel strategy is a mix of direct engagement and broad distribution.

Direct sales force to Original Equipment Manufacturers (OEMs) and EMS

Vishay Intertechnology, Inc. maintains a direct sales presence to reach large Original Equipment Manufacturers (OEMs) and Electronics Manufacturing Services (EMS) providers. This direct route is supported by dedicated staff, including direct field sales personnel and Field Application Engineers (FAEs). These FAEs, organized by market segment like automotive or industrial, bring specific knowledge to help customers design products using Vishay's entire portfolio. For instance, in the second quarter of 2025, the EMS channel saw a jump, with sales increasing by 13% sequentially, showing the direct engagement with high-volume manufacturers is working. The company's trailing twelve-month revenue as of September 30, 2025, stood at $2.98B, a significant portion of which is driven by these direct OEM/EMS relationships.

Global network of authorized catalogue and volume distributors

To cover the vast landscape of smaller customers and design-in opportunities, Vishay Intertechnology relies heavily on its global network of authorized distributors. This channel is crucial for broad market coverage. In the second quarter of 2025, the distribution channel contributed to the overall positive momentum, delivering growth. The company actively directs customers to its authorized partners via its website, listing options to Find a Distributor globally. This network helps Vishay serve its diverse customer base across industrial, computing, consumer, and medical markets.

Here's a look at the geographic scope and recent channel performance context:

Online technical resources and design tools for engineers

Vishay Intertechnology supports its sales channels by providing extensive online resources aimed at the design engineer. The company maintains an Engineer's Toolbox and a Document Library on its website. These digital assets help engineers select components and integrate them into new designs, effectively acting as a self-service channel extension. You can find sections for Request Sample and check stock availability online, streamlining the early design-in process.

Regional sales offices supporting major markets (Asia, Europe, Americas)

The physical sales support structure mirrors the company's manufacturing footprint, ensuring localized support in key economic zones. Vishay Intertechnology has manufacturing plants located across Asia, Europe, and the Americas. This physical presence supports the regional sales offices that cater to major markets in those areas. The Q2 2025 results confirmed this strategy, showing growth across all regions, which suggests the localized sales and support teams are effectively managing demand, including the 2% positive foreign currency impact noted in the quarter.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Customer Segments

You're looking at the core markets Vishay Intertechnology, Inc. serves, which is where their $762.3 million in revenue for the second quarter of 2025 came from. The company noted growth across all end markets in that quarter, which contributed to a 7% sequential revenue increase.

The overall order health looks decent, with the book-to-bill ratio hitting 1.02 in Q2 2025, and the backlog standing at 4.6 months, representing about $1.2 billion in dollar terms.

Here is a look at the key customer areas Vishay Intertechnology focuses on:

Automotive sector (EVs, ADAS, hybrid vehicles)

This sector is a clear focus area, explicitly mentioned alongside smart grid and AI as a driver for growth. The company is positioning itself to capitalize on the electrification trend, which is supported by their recent product launches, such as the 1200 V SiC MOSFET power modules announced on December 3, 2025, designed for next-generation electric vehicles.

Industrial markets (smart grid, power supplies, factory automation)

The industrial segment showed a rebound, with management citing growth from the smart grid infrastructure sector. Order intake for smart grid projects more than doubled in Europe, and government spending in China and India is accelerating smart grid infrastructure. Vishay Intertechnology has deployed approximately $775 million since 2023 to expand capacity, with at least 70% of the planned $300 million to $350 million capital expenditure for 2025 dedicated to high-growth product lines, which certainly includes industrial power needs.

Computing and Data Centers (AI servers, power management)

Demand related to AI power applications is a significant tailwind, particularly in Asia. Vishay expects to win additional smart grid projects as customers address electricity demands in AI data centers. This segment is critical for the company's future revenue trajectory.

Telecommunications, Military, Aerospace, and Medical equipment manufacturers

These specialized, often higher-reliability markets remain a consistent base for Vishay Intertechnology's components. The company's components are essential for devices in these sectors. The CEO specifically highlighted aerospace and defense as one of the higher growth markets they are positioning for.

Electronic Manufacturing Services (EMS) providers globally

EMS customers are a key channel for Vishay Intertechnology. In Q2 2025, growth was delivered to EMS customers, and distribution revenues benefited from nearly 50,000 SKUs added to inventory, which helped reduce channel inventory weeks.

To give you a snapshot of the business health supporting these segments as of the second quarter of 2025, look at these figures:

The geographic mix shows where the immediate strength is coming from. Asia contributed 42% of total revenue in Q2 2025, showing 12% sequential and 12% year-over-year growth. The Americas saw 7% sequential growth but declined 2% year-over-year, while Europe was flat quarter-over-quarter and fell 3% year-over-year.

Vishay Intertechnology's components are fundamental to these markets, which is why they are investing heavily:

• Invested ~$775 million since 2023 to expand capacity.
• Planned 2025 capital expenditure is between $300,000,000 and $350,000,000.
• At least 70% of 2025 CapEx targets high-growth product lines.
• The company maintains a steady quarterly dividend of $0.10 per share.

Finance: draft 13-week cash view by Friday.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Cost Structure

You're looking at where Vishay Intertechnology, Inc. is spending its money to keep the lights on and drive future growth. The cost structure is heavily weighted toward capital investment right now, which makes sense given the market trends you're tracking.

The company is definitely in a high capital intensity phase due to its manufacturing and capacity expansion under the Vishay 3.0 plan. They targeted capital spending of $300 million to $350 million in 2025 for these projects. Honestly, 70% of that CapEx is specifically earmarked for high-growth product lines, which is a clear signal about where they see future margins. This aggressive spending means they expect negative free cash flow for 2025 because of these capacity build-outs. To give you context, the full year 2024 CapEx was $320.1 million.

Selling, General, and Administrative (SG&A) expenses are a major operating cost. For the full year 2025, the expectation is that SG&A will land between $540 million and $560 million, not counting a one-time benefit recognized in Q2. Looking at the quarterly cadence, Q3 2025 SG&A was guided around $138 million plus or minus $2 million. For comparison, Q2 2025 SG&A was reported at $127 million, which included an $11 million benefit from resolving an outstanding matter.

Cost of Goods Sold (COGS) is significant, driven by raw materials and the labor needed for manufacturing the components. Inventory levels show the material commitment; for instance, Raw materials inventory at the end of Q2 2025 was $235,898 thousand, up from $220,484 thousand in Q1 2025. The gross margin reflects these costs; for Q2 2025, the gross margin hit 19.5% on $149 million in gross profit.

Research and Development (R&D) investment is focused on securing future high-margin revenue, particularly in Silicon Carbide (SiC) technology. This isn't just talk; they are actively launching products, such as the 1200 V SiC MOSFET power modules announced on December 3, 2025. Their SiC platform is a key focus, addressing demands in traction inverters and EV charging stations. In some reference designs shown in mid-2025, components like their latest SiC MOSFETs made up 70% or more of the Bill of Materials (BOM).

Finally, you need to account for the non-cash charges like depreciation. The guidance for Q4 2025 depreciation expense is set at approximately $55 million for that quarter. The total expected depreciation expense for the entirety of fiscal 2025 is projected to be $212 million. For Q3 2025, the expected depreciation was $54 million.

Here's a quick math summary of the key 2025 cost and investment figures we've seen:

The major cost drivers related to product creation involve:

• Raw materials, with inventory levels fluctuating, such as $235,898 thousand in Q2 2025.
• Manufacturing labor costs embedded within Cost of Goods Sold.
• Significant capital outlay for capacity expansion, which drives future depreciation.

The investment in future profitability is clear through R&D focus:

• Developing new SiC MOSFET technology, with product launches continuing into December 2025.
• Focusing on high-margin products that can capture megatrends like e-mobility.
• Allocating 70% of the $300M-$350M CapEx to these growth areas.

Vishay Intertechnology, Inc. (VSH) - Canvas Business Model: Revenue Streams

You're looking at the top-line generation for Vishay Intertechnology, Inc. as of their latest reported quarter in late 2025. The revenue streams are fundamentally split between their two main product categories: discrete semiconductors and passive electronic components. Honestly, understanding this split helps you see where the dollar is coming from.

For the fiscal third quarter ended September 27, 2025, Vishay Intertechnology, Inc. reported total revenues of $790.6 million. On a trailing twelve months (TTM) basis leading up to that point, the total revenue stood at $2.98B. This TTM figure shows a slight year-over-year decline of -0.84%.

A key component of the reported revenue, which you need to track for margin analysis, is the revenue derived from tariff adders. Vishay Intertechnology, Inc. management has confirmed they are generally passing through additional tariff costs to customers. So, these tariff adders boost the top-line revenue number, but they do not impact the gross profit, though they do negatively affect the reported gross margin by about 30 basis points in some prior guidance. The CFO also noted steps were being put in place to pass metal increases on to customers as of Q3 2025.

Here's a quick look at the key financial snapshot around that Q3 2025 revenue:

The revenue generation is directly tied to the performance of the two major product groups. You can see the demand signals in the segment book-to-bill ratios for Q3 2025:

• Sales of Discrete Semiconductors book-to-bill was 0.96.
• Sales of Passive Electronic Components book-to-bill was 0.98.

Drilling down into specific component sales for Q3 2025 gives you a clearer picture of where the growth was concentrated, even with the overall book-to-bill below 1.0:

The CEO noted that this revenue growth demonstrated alignment with high-growth markets, which directly translates to the demand for these components. Specifically, the revenue is supported by:

• Smart grid infrastructure demand.
• AI related power requirements.
• Automotive and aerospace/defense sectors.

The company is using heavy investments in capacity expansion to meet these quick-turn delivery requirements. That's how they convert potential demand into realized revenue.