Power Integrations (POWI) UBS Global Technology and AI Conference summary

Strategic overview and market positioning

• Focused on high-voltage power conversion with proprietary process and packaging technology, expanding from AC-DC to EVs, renewables, and brushless DC motors.

• SAM has grown from $1.5B to $4B and is targeted to reach $8B in five years, driven by innovation and new market entry.

• Leadership in GaN technology, with plans to enter silicon carbide markets.

Revenue mix and end-market trends

• Cell phone segment has declined to 12% of revenue, with consumer (mainly appliances) and industrial segments now comprising over 70%.

• Industrial segment includes renewables, motor drives, metering, e-bikes, and EVs, expected to become the largest segment.

• Channel inventory normalized to about 8 weeks, positioning well for 2025.

Financial performance and outlook

• Q4 revenue guided down due to inventory build-up in consumer appliances, while industrial remains stable.

• Expect equilibrium between sell-in and sell-through in 2025.

• Growth anticipated in auto, industrial high power, and metering, with all four business segments expected to grow in 2025.