Vishay Intertechnology
Vishay makes discrete semiconductors and passive components (diodes, resistors, capacitors) for autos and industry.
On the record
Checkpoint: Germany 12 inch SiC fab equipment installation completes, ahead of mid 2027 non auto production start
The call
Vishay's order book is growing again, but it is spending borrowed and diluted money to catch a SiC and AI power wave that ON Semiconductor and Infineon already rode first.
Vishay is a 60-year-old company that makes semiconductor chips and electronic components like resistors and capacitors. It faces two big problems: ON Semiconductor and Infineon already dominate the fastest-growing chip segments (especially silicon carbide chips for electric vehicles and data centers), and Vishay is spending $2.6 billion to build new factories to compete, which will drain cash and likely force the company to ask shareholders to fund it through new stock or convertible debt. The key question is whether Vishay's massive factory spending will actually let it make money faster than rivals are already doing, or if it will just lose money during a temporary peak in chip demand and leave shareholders diluted when the cycle turns down.
Why
01
AI pressure: None apparent. AI data centers need power semiconductors, so AI demand is a potential tailwind for Vishay's chips, not a software threat to them. Could AI do the core job? Unlikely.
02
Bigger players: ON Semiconductor (SiC power chips), also Infineon, STMicroelectronics, Diodes Inc. ON Semi already holds 55% of new EV SiC design wins while Vishay spends $2.6B trying to catch up in the same market. Could a giant copy it? Probably.
03
What protects it. Six decades of qualified sockets across auto, industrial and aerospace customers, plus a broad passives book that doesn't depend on SiC catching up.
What would change this call
Germany 12-inch fab reaches production near mid-2027 as guided. Shows whether Vishay's capex bet is executing on schedule or slipping.
Vishay gross margin trend over next two years toward or away from 30%. Indicates whether pricing power and scale are improving or eroding.
Named large-scale SiC or AI data-center power design win announced by Vishay. Would show Vishay actually gaining share, not just defending existing base.
Vishay gross margin trend over next two years toward or away from 30%. Indicates whether pricing power and scale are improving or eroding.
Named large-scale SiC or AI data-center power design win announced by Vishay. Would show Vishay actually gaining share, not just defending existing base.
Key numbers
- Q1 2026 revenue $839.2M, up 17.3% year over year
- Book to bill 1.34, backlog $1.6B, up 21%
- Free cash flow negative $47M in Q1 2026
Named risks
- Negative free cash flow guided for all of FY2026 amid heavy $2.6B capex program.
- Dilution from $750M equity offering plus $750M convertible notes becoming convertible July 2026.
- Execution risk on Germany 12-inch fab targeted for mid-2027 non-automotive production.
- Stock volatility: +191-313% YTD rally followed by 23% one-month drop by 2026-07-09 signals cyclical demand risk.
- Multiple Kaskela Law stockholder investigation notices filed Jul 2025 through Apr 2026.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| ON Semiconductor | losing to | ON held ~55% of new EV SiC design share at 2026 Beijing Auto Show (2026-04-30) |
| Diodes Incorporated | losing to | Diodes posted 31.8% gross margin vs Vishay's ~22%, Q1 2026, beats Vishay on 11/16 MarketBeat factors (2026-07-07) |
| Infineon | contesting | Larger-scale incumbent in discretes/SiC overlapping Vishay's automotive and power segments, 2026 |
| STMicroelectronics | contesting | Broader-portfolio discrete-semiconductor rival competing for same automotive/industrial design-ins, 2026 |
| Littelfuse | contesting | Comparable peer with higher ROE (11.62%) vs Vishay per MarketBeat mid-2026 comparison |
Questions people ask
- Is Vishay Intertechnology profitable in 2026?
- Yes, for Q1 2026 Vishay posted GAAP net earnings of $7.16 million and revenue of $839.2 million, up 17.3% year over year, versus a $4.09 million net loss a year earlier, as reported for the quarter ended 2026-03-31.
- Who is Vishay Intertechnology's biggest competitor?
- ON Semiconductor is the sharpest rival in Vishay's growth target: ON held about 55% of new EV SiC design share at the 2026 Beijing Auto Show (2026-04-30) while Vishay is spending $2.6 billion through 2028 trying to catch up in SiC.
- Could AI replace Vishay Intertechnology's business?
- No. Vishay makes physical discrete semiconductors and passive components requiring fabs, certifications and multi-year automotive qualification cycles; AI infrastructure buildout is cited by management as a demand driver, not a disruption threat, as of mid-2026.
- Is it safe to take a job at Vishay Intertechnology?
- Mixed signal: Vishay closed 3 plants (Shanghai, Fichtelberg, Milwaukee) cutting about 535 jobs announced 2024-09-24, while simultaneously hiring for its $2.6 billion capacity expansion including the Newport UK and Germany fabs.
- Who owns Vishay Intertechnology?
- Vishay Intertechnology is publicly traded on the NYSE under ticker VSH with no controlling parent; Marc Zandman serves as Executive Chairman and Joel Smejkal as President and CEO, as of mid-2026 reporting.
- Is Vishay Intertechnology stock overvalued after its 2026 rally?
- Vishay's stock surged an estimated 191% to 313% year to date by mid-2026 before plunging about 23% in a single month by 2026-07-09, a swing consistent with a cyclical demand bet rather than durable pricing power.
Timeline
- 2026-07-06Vishay's $750M 2.25% convertible notes due 2030 became convertible per 8-K notice
- 2026-07-01Closed $750M public stock offering, 15 million shares at $50 each
- 2026-06-29Announced pricing of 15M-share public offering at $50/share
- 2026-05-14Newport SiC fab reached gross-profit neutrality after automotive Tier-1 audits
- 2026-03-31Q1 2026 revenue $839.2M (+17.3% y/y); net earnings $7.16M, turned profitable
- 2026-01-31Launched five new 1200V SiC power modules for auto, industrial, AI data-center power
- 2024-09-24Announced Vishay 3.0 restructuring, closing 3 plants and cutting ~535 jobs
- 2024-03-06Acquired Nexperia's Newport (UK) 200mm wafer fab for $177M to build SiC capacity
- 1962-01-01Vishay founded by Felix Zandman, named after ancestral village Veisiejai
Revision history
24 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Vishay Intertechnology (2026-06-16)
- Vishay Intertechnology (VSH) Reports Q1 2026 Revenue of $839.2M, Turns Profitable (2026-05-20)
- Vishay Intertechnology Inc (VSH) Q1 2026 Earnings Call Highlights (2026-05-13)
- Vishay Intertechnology Acquires Nexperia's Newport Wafer Fab for $177 Million (2024-03-06)
- Vishay Intertechnology Q1 Earnings Call Highlights (2026-05-14)
- Will Vishay's 3.0 Strategy Deliver Sustainable Margin Expansion? (2026-07-09)
- Vishay Intertechnology Announces Pricing of Public Offering of Common Stock (2026-06-29)
- Form 8-K VISHAY INTERTECHNOLOGY For: Jul 06 (2026-07-06)
- Prospectus Rule 424(b)(5)
- Vishay Intertechnology Announces Restructuring (2024-09-24)
- Can Vishay's Massive Capacity Expansion Unlock Margin Growth Ahead? (2026-06-30)
- Vishay 1200 V SiC Power Modules Boost Efficiency