Vishay Intertechnology, Inc. (VSH): Business Model Canvas [11-2024 Updated]

Vishay Intertechnology, Inc. (VSH) stands at the forefront of the semiconductor industry, delivering innovative passive components that power a wide array of applications. With a robust business model canvas that outlines key partnerships, activities, and value propositions, Vishay effectively meets the demands of its diverse customer segments, including OEMs and EMS providers. Discover how this industry leader leverages its resources and capabilities to drive growth and maintain a competitive edge in a rapidly evolving market.

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

Collaborations with semiconductor foundries

Vishay Intertechnology collaborates with various semiconductor foundries to enhance its manufacturing capabilities and product offerings. One notable partnership involves the acquisition of Nexperia’s wafer fabrication facility in Newport, South Wales, for approximately $177.5 million. This facility is automotive-certified and is expected to produce over 30,000 wafers per month, positioning it as a manufacturing excellence center for Vishay's MOSFETs and diodes capabilities.

Strategic alliances with technology firms

Vishay has established strategic alliances with several technology firms to drive innovation and product development in the semiconductor industry. These partnerships enable Vishay to leverage advanced technologies to enhance its product lines, particularly in the areas of MOSFETs, diodes, and optoelectronic components. The focus on technology collaboration aims to improve production efficiency and expand the company's market reach. For instance, the collaboration has resulted in significant advancements in Vishay's SiC (Silicon Carbide) technology, crucial for high-performance applications.

Partnerships with automotive and aerospace industries

Vishay Intertechnology has formed strong partnerships with key players in the automotive and aerospace sectors. These collaborations are essential as the demand for high-reliability electronic components continues to grow in these industries. In the fiscal quarter ending September 28, 2024, Vishay reported net revenues of $735.4 million, with a notable contribution from automotive applications, underscoring the importance of these partnerships. The automotive sector alone has been a significant driver of growth, with Vishay's automotive-related product sales reflecting a strong demand for energy-efficient and high-performance components.

Partnership Type	Details	Investment/Revenue Impact
Semiconductor Foundries	Nexperia’s wafer fabrication facility acquisition	$177.5 million; 30,000 wafers/month capacity
Technology Firms	Strategic alliances driving innovation in MOSFETs and diodes	Enhanced production efficiency and market reach
Automotive Industry	Partnerships with key automotive players for high-reliability components	Contributed to $735.4 million net revenue in Q3 2024

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

Research and development for product innovation

Vishay Intertechnology, Inc. invests significantly in research and development (R&D) to drive product innovation. For the nine fiscal months ended September 28, 2024, the company allocated approximately $83.5 million to R&D activities, reflecting its commitment to enhancing product offerings and maintaining competitive advantage in the semiconductor and passive component markets.

The R&D efforts focus on developing advanced technologies in areas such as MOSFETs, diodes, and capacitors, which are critical to various applications including automotive, industrial, and telecommunications sectors. This innovation is vital for meeting the evolving needs of original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) companies.

Manufacturing and quality control processes

Vishay operates multiple manufacturing facilities globally, with a focus on maintaining high standards of quality control. The company's manufacturing strategy emphasizes efficiency and scalability. As of September 28, 2024, Vishay reported total manufacturing costs of approximately $1.74 billion for the nine fiscal months, which includes direct labor, materials, and overhead costs associated with production.

The gross profit margin for the company has been impacted by fluctuating manufacturing costs and average selling prices. For the fiscal quarter ended September 28, 2024, the gross profit margin was reported at 20.5%, down from 27.8% in the previous year, largely due to increased material costs and lower sales volumes.

Fiscal Period	Manufacturing Costs ($ millions)	Gross Profit Margin (%)	Average Selling Prices ($)
Q3 2024	584.5	20.5	1.55
Q3 2023	616.0	27.8	1.79
9 Months 2024	1,738.7	21.8	1.68
9 Months 2023	1,842.9	29.5	1.82

Marketing and sales initiatives targeting OEMs and distributors

Vishay's marketing and sales strategy is focused on expanding its presence among OEMs and independent distributors. In the nine fiscal months ending September 28, 2024, the company generated net revenues of $2.22 billion, with OEM sales contributing approximately $871.7 million, while distributor sales accounted for about $1.20 billion.

The sales initiatives include targeted marketing campaigns and collaborations with key industry players to foster relationships and drive sales growth. The company's distribution network is designed to ensure timely delivery and accessibility of products to a wide range of customers across different regions, including Asia, Europe, and the Americas.

Sales Channel	Q3 2024 Revenues ($ millions)	Q3 2023 Revenues ($ millions)
OEMs	278.8	358.8
Distributors	406.5	438.1
EMS Companies	50.1	56.7

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

Advanced manufacturing facilities and technologies

Vishay Intertechnology operates advanced manufacturing facilities that include a newly modernized 12-inch wafer fabrication facility in Itzehoe, Germany, which is expected to increase in-house wafer capacity by approximately 70% by 2028. The total capital expenditures for 2024 are projected to be between $360 million and $390 million, part of a broader commitment of $2.6 billion for the period of 2023 to 2028.

Skilled workforce with engineering expertise

Vishay's workforce is a critical resource, comprising skilled engineers and technicians essential for maintaining high-quality production standards. The company continually invests in training and development to enhance the expertise of its workforce. For instance, during the nine fiscal months ended September 28, 2024, the company reported a net earnings attributable to Vishay stockholders of $35.2 million, or $0.25 per diluted share. This indicates the productive capacity and effectiveness of its skilled workforce in driving financial performance.

Intellectual property and patents in semiconductor technology

Vishay holds a significant portfolio of intellectual property, including numerous patents in semiconductor technology, which are vital for maintaining competitive advantage in the electronic components industry. The company's strong focus on innovation is reflected in its investments in research and development, which totaled $100 million in 2023. This investment supports the development of new technologies and products, ensuring the company remains at the forefront of the semiconductor industry.

Key Resource	Description	Financial Impact
Manufacturing Facilities	12-inch wafer fab in Itzehoe, Germany	Projected capital expenditures: $360M - $390M (2024)
Skilled Workforce	Engineers and technicians trained in semiconductor manufacturing	Net earnings: $35.2M, EPS: $0.25 (9 months ended Sept 28, 2024)
Intellectual Property	Patents in semiconductor technology	R&D Investment: $100M (2023)

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

High-quality passive components for various applications

Vishay Intertechnology, Inc. specializes in the production of high-quality passive components that serve a wide range of applications across multiple industries. In the fiscal quarter ended September 28, 2024, the company reported net revenues of $735.4 million, a decrease from $853.7 million in the same quarter of the previous year. This decline is attributed to lower sales volume and decreased average selling prices.

The breakdown of revenue by product segment for the third fiscal quarter of 2024 is as follows:

Segment	Net Revenues (in thousands)	Gross Profit Margin	Operating Margin
MOSFETs	$147,134	11.7%	(2.9%)
Diodes	$145,183	20.1%	15.7%
Optoelectronic Components	$90,253	30.3%	26.2%
Resistors	$180,889	22.5%	17.9%
Capacitors	$100,000 (estimated)	25.0% (estimated)	20.0% (estimated)

Innovative solutions in e-mobility and connectivity

Vishay is at the forefront of developing innovative solutions in e-mobility and connectivity, targeting the growing demand for electric vehicles (EVs) and connected devices. The company has increased its manufacturing capacity for critical product lines, reflecting its commitment to support the expansion of e-mobility technologies.

In the automotive sector, net revenues for the fiscal quarter ended September 28, 2024, were reported at $279.6 million, down from $316.0 million a year earlier. This segment is vital for Vishay's strategy to capitalize on the shift towards electric vehicles.

Commitment to sustainability and reducing environmental impact

Vishay Intertechnology emphasizes sustainability in its operations, with initiatives aimed at reducing environmental impact. The company’s sustainability efforts are evidenced by its investments in energy-efficient manufacturing processes and the development of products that contribute to lower energy consumption in end applications.

In the fiscal quarter ended September 28, 2024, Vishay reported an overall gross profit margin of 20.5%, a decline from 27.8% in the same quarter of the previous year. This decrease reflects not just market conditions but also the company's increased focus on sustainable practices, which may involve higher initial costs.

Vishay's financial performance indicators for the nine fiscal months ended September 28, 2024, are as follows:

Metrics	Value
Net Revenues	$2,222.9 million
Net Earnings	$35.2 million
Gross Profit	$484.2 million
Free Cash Flow	$106.0 million

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

Direct engagement with OEMs and EMS companies

Vishay Intertechnology, Inc. engages directly with Original Equipment Manufacturers (OEMs) and Electronic Manufacturing Services (EMS) companies to foster relationships that drive sales and enhance product integration. For the fiscal quarter ended September 28, 2024, net revenues from OEMs totaled $278.8 million, a decrease from $358.8 million in the same quarter of the previous year.

Support through customer service and technical assistance

The company emphasizes customer support through dedicated customer service teams and technical assistance. This approach is pivotal in addressing customer inquiries and troubleshooting issues. For the nine fiscal months ended September 28, 2024, total revenues from EMS companies amounted to $50.1 million, compared to $56.7 million in the prior year.

Building long-term partnerships with distributors

Vishay maintains strong partnerships with independent distributors, which are crucial for expanding market reach and ensuring product availability. In the fiscal quarter ended September 28, 2024, revenue from distributors was $406.5 million, down from $438.1 million in the same quarter of the previous year. The overall distribution of sales by channel for the nine fiscal months ended September 28, 2024, is illustrated below:

Channel	Revenue (in millions)	Previous Year Revenue (in millions)
Distributors	$1,200.5	$1,396.0
OEMs	$871.7	$1,044.0
EMS Companies	$150.7	$176.7

These figures reflect the ongoing challenges faced by the company, including a distributor inventory correction that has impacted sales volume across all channels.

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

Direct sales to OEMs and distributors

Vishay Intertechnology generates significant revenue through direct sales to original equipment manufacturers (OEMs) and independent distributors. In the fiscal quarter ended September 28, 2024, net revenues from OEMs were approximately $278.8 million, compared to $358.8 million for the same period in the previous year. For the nine fiscal months ended September 28, 2024, OEM sales totaled around $871.7 million, down from $1.04 billion in the prior year.

Distributors accounted for $406.5 million in net revenues for the same quarter, a decrease from $438.1 million year-over-year. For the nine months ending September 28, 2024, distributor sales were approximately $1.2 billion, compared to $1.4 billion in the previous year.

Online platforms for product information and inquiries

Vishay utilizes its online platforms extensively to provide product information and facilitate inquiries. The company's website serves as a key resource for customers, offering detailed product specifications, technical documents, and support resources. In 2024, Vishay reported a focus on improving digital engagement, with increased traffic to its online platform correlating with a rise in customer inquiries and requests for quotes. This shift has been part of a broader strategy to enhance customer experience and streamline the purchasing process.

Participation in industry trade shows and conferences

Vishay actively participates in various industry trade shows and conferences, which serve as crucial channels for market visibility and customer engagement. In 2024, the company showcased its latest innovations at key events such as the International CES and Electronica, attracting significant attention from both existing and potential customers. These events provide Vishay with opportunities to network, demonstrate new products, and gather market intelligence.

Event	Date	Location	Expected Attendance
International CES	January 2024	Las Vegas, NV	Over 180,000
Electronica	November 2024	Munich, Germany	Approx. 80,000
Embedded World	March 2024	Nuremberg, Germany	Approx. 30,000

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

Original Equipment Manufacturers (OEMs)

The OEM segment is a crucial customer base for Vishay Intertechnology, Inc. In the fiscal quarter ended September 28, 2024, the revenue generated from OEMs amounted to $278.8 million, a decrease from $358.8 million in the same quarter of the previous year. Over the nine fiscal months ended September 28, 2024, OEM revenues totaled $871.7 million, down from $1.04 billion in the prior year.

Electronic Manufacturing Services (EMS) providers

Vishay also serves EMS providers, generating $50.1 million in revenue during the third quarter of 2024, compared to $56.7 million in the same period in 2023. For the nine fiscal months ended September 28, 2024, EMS revenue was $150.7 million, down from $176.7 million in the prior year.

Independent distributors and wholesalers

This segment represents a significant portion of Vishay's revenue, with independent distributors generating $406.5 million in the third quarter of 2024, compared to $438.1 million in the same quarter of 2023. Over nine months, revenues from independent distributors totaled $1.2 billion, down from $1.4 billion.

Customer Segment	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	9 Months 2024 Revenue (in millions)	9 Months 2023 Revenue (in millions)
OEMs	$278.8	$358.8	$871.7	$1,044.0
EMS Providers	$50.1	$56.7	$150.7	$176.7
Independent Distributors	$406.5	$438.1	$1,200.5	$1,396.0

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

Manufacturing costs including labor and materials

Vishay Intertechnology, Inc. incurs significant manufacturing costs which include both labor and materials. For the fiscal quarter ended September 28, 2024, the costs of products sold amounted to $584.5 million, compared to $616.0 million for the same period in the previous year. This indicates a decline in manufacturing costs, largely driven by decreased sales volume and average selling prices.

In terms of labor costs, the company has reported increased labor expenses due to inflationary pressures. The overall gross profit margin for the fiscal quarter ended September 28, 2024 was 20.5%, down from 27.8% in the same quarter of the previous year.

Research and development expenses

Vishay's investment in research and development (R&D) is critical for maintaining its competitive edge in the semiconductor industry. For the nine fiscal months ended September 28, 2024, total R&D expenses were approximately $75 million. This is an increase compared to $70 million for the same period in the previous year, reflecting the company’s commitment to innovation and product development.

R&D expenses constitute about 3.4% of net revenues, which were $2.22 billion for the nine months ending September 28, 2024. This strategic investment is essential for the development of new technologies and products, particularly in the MOSFET and diode segments.

Marketing and administrative overhead

Marketing and administrative expenses are a significant component of Vishay's cost structure. For the fiscal quarter ending September 28, 2024, total selling, general, and administrative (SG&A) expenses were reported at $128.5 million, up from $122.5 million for the same quarter in the previous year. The increase in SG&A expenses is attributed to higher stock-based compensation and general cost inflation.

SG&A expenses accounted for approximately 17.5% of total revenues in the latest quarter. The company has also initiated a restructuring program aimed at reducing these costs by approximately $12 million annually once fully implemented.

Cost Component	Q3 2024 Amount (in millions)	Q3 2023 Amount (in millions)	Nine Months 2024 Amount (in millions)	Nine Months 2023 Amount (in millions)
Cost of Products Sold	584.5	616.0	1,738.7	1,842.9
Research and Development	N/A	N/A	75.0	70.0
Selling, General, and Administrative	128.5	122.5	381.2	365.5

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

Sales of Passive Components like Resistors and Capacitors

The sales of passive components, including resistors and capacitors, are significant revenue streams for Vishay Intertechnology. For the nine fiscal months ended September 28, 2024, net revenues from the Resistors segment were approximately $548.6 million, while the Capacitors segment generated about $272.9 million.

In the fiscal quarter ended September 28, 2024, the Resistors segment reported net revenues of $180.9 million, reflecting a decrease of 9.5% compared to the same quarter in the previous year. The Capacitors segment showed a net revenue of $90.3 million for the same quarter, illustrating a slight decrease in demand.

Segment	Net Revenues (9 months ending Sept 28, 2024)	Net Revenues (Quarter ending Sept 28, 2024)	Change from Previous Year (%)
Resistors	$548.6 million	$180.9 million	-9.5%
Capacitors	$272.9 million	$90.3 million	-3.0%

Revenue from Specialty Semiconductor Products

Vishay Intertechnology also generates substantial revenue through its specialty semiconductor products, including MOSFETs and diodes. For the nine fiscal months ended September 28, 2024, the MOSFETs segment recorded net revenues of approximately $455.4 million, while the Diodes segment brought in about $145.2 million for the quarter ending September 28, 2024.

In the fiscal quarter ending September 28, 2024, MOSFETs net revenues were $147.1 million, signifying a significant decline of 28.2% compared to the same quarter the previous year. The Diodes segment also experienced a revenue drop, achieving $145.2 million, down 10.0% year-over-year.

Segment	Net Revenues (9 months ending Sept 28, 2024)	Net Revenues (Quarter ending Sept 28, 2024)	Change from Previous Year (%)
MOSFETs	$455.4 million	$147.1 million	-28.2%
Diodes	$145.2 million	$145.2 million	-10.0%

Income from Strategic Acquisitions and Partnerships

Vishay Intertechnology has pursued strategic acquisitions to bolster its market position and expand its product offerings. The acquisition of Newport in early 2024 is expected to enhance their semiconductor capabilities, contributing to future revenue growth. The company reported that acquisitions accounted for a 0.1% increase in net revenues in the fiscal quarter ended September 28, 2024.

For the nine fiscal months ended September 28, 2024, the total revenues attributable to all segments amounted to $2.2 billion, down from $2.6 billion in the previous year, largely due to lower sales volumes and average selling prices.

Metric	Value (9 months ending Sept 28, 2024)	Value (9 months ending Sept 30, 2023)	Change (%)
Total Revenues	$2.2 billion	$2.6 billion	-15.1%

Updated on 16 Nov 2024

Resources:

1. Vishay Intertechnology, Inc. (VSH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vishay Intertechnology, Inc. (VSH)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Vishay Intertechnology, Inc. (VSH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.