Vishay Intertechnology Expands Inductor Product Line to Enhance Sourcing Flexibility and Performance for Customers

Rhea-AI Summary

Vishay Intertechnology (NYSE: VSH) has expanded its inductor product line, adding 1800 SKUs across 70+ series. The expansion includes:

• Higher inductance and voltage options
• More size variations for smaller PCBs
• Improved noise reduction capabilities
• New products like wireless charging inductors and common-mode chokes

Vishay is investing in capacity upgrades, including IHLP® production in Mexico, China, and Southeast Asia. This expansion aims to provide customers with enhanced sourcing flexibility, optimized cost-performance ratios, and shorter lead times. The new products will be integrated into Vishay's global distribution network, ensuring swift worldwide availability.

Positive

• Expansion of inductor product line with 1800 new SKUs across 70+ series
• Investment in capacity upgrades and IHLP® production capabilities
• Introduction of higher inductance and voltage options
• Improved noise reduction capabilities
• Expansion of global distribution network for swift product availability

Negative

• None.

Insights

Electronics Industry Analyst

Vishay's expansion of its inductor product line is a strategic move to strengthen its market position. The addition of 1800 SKUs across 70+ series significantly broadens their offering, potentially increasing market share and revenue streams. The focus on higher inductance and voltage products aligns with growing demands in advanced electronics.

The investment in capacity upgrades, including the new La Laguna plant, indicates Vishay's commitment to meeting increased demand and reducing lead times. This expansion could lead to improved economies of scale and potentially higher profit margins. The emphasis on global distribution and rapid sample availability suggests a strategy to capture market share quickly and efficiently.

While this expansion is promising, investors should monitor how effectively Vishay manages inventory and production costs across this broader product range. The success of this initiative will depend on market adoption and Vishay's ability to maintain quality across the expanded portfolio.

Supply Chain Expert

Vishay's product line expansion is a calculated response to supply chain challenges in the electronics industry. By offering more options and sizes, Vishay is positioning itself as a one-stop shop for inductors, potentially reducing customers' need to source from multiple suppliers. This strategy could lead to stronger customer relationships and increased order volumes.

The focus on sourcing flexibility and performance optimization addresses key pain points for electronics manufacturers. By providing a wider range of options at various price points, Vishay is enabling customers to fine-tune their designs for cost-effectiveness without compromising on performance. This approach could lead to increased customer loyalty and potentially higher sales volumes.

However, managing a larger product portfolio requires robust inventory management and production planning. Vishay will need to carefully balance stock levels to avoid excess inventory while ensuring product availability to maintain customer satisfaction.

Financial Analyst

While specific financial figures are not provided, this expansion signals potential for revenue growth and market share gains for Vishay. The investment in capacity upgrades, particularly in Mexico and Southeast Asia, suggests a focus on cost-effective manufacturing, which could positively impact profit margins in the medium to long term.

The expansion into higher inductance and voltage products could open up new market segments, potentially driving revenue diversification. The emphasis on providing options at various price points indicates a strategy to capture business across different customer segments, from cost-sensitive to high-performance applications.

Investors should watch for future financial reports to gauge the impact of this expansion on revenue growth and profit margins. Key metrics to monitor include inventory turnover, gross margins and revenue growth in the Inductor Division. While the expansion is promising, it's important to assess how effectively Vishay manages the increased complexity in its product portfolio and supply chain.

More Sizes, Higher Inductance and Voltages to Fit the Smallest PCBs, Support More Applications

MALVERN, Pa., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc. (NYSE: VSH) today announced a significant expansion of its inductor product lines, adding a broad array of new products designed to provide customers with enhanced options for achieving specific cost/performance ratios in their designs. The broadened portfolio will simplify the sourcing process for Vishay’s customers, offering a wider range of device options at various price points.

This expansion includes new product offerings that cater to applications requiring higher inductance—by an order of magnitude—and higher voltage inductors. Additionally, Vishay has introduced more size variations, ensuring that customers can find suitable inductors for any available PCB space, no matter how small.

The bolstered product line also features improved noise reduction capabilities with a wider range of common-mode products, broadening Vishay’s inductor capabilities across telecom, industrial, and consumer markets. The new devices being added include wireless charging inductors, shielded and semi-shielded drum core inductors, common-mode chokes, coupled inductors, trans-inductance voltage regulator inductors (TLVR), high current ferrite impedance beads, and more.

As part of this strategic expansion, Vishay is investing in capacity upgrades and extending its IHLP® production capabilities in all facilities, including its recently inaugurated La Laguna plant in Gómez Palacio, Durango, Mexico, as well as China, and other areas of the Southeast Asia region. The capacity investment is continuing to position Vishay to better serve the global market.

“Our commitment to providing our customers with optimized cost vs. performance, capacity readiness with short lead times, and breadth of product is at the forefront of this expansion,” said Mike Husman, Senior Vice President, Inductor Division, at Vishay. “This ambitious undertaking will result in the addition of 1800 additional SKUs across more than 70 series, further solidifying Vishay as the go-to source for inductor technology. With this product and capacity expansion, we are better positioned to meet the latest demand and continue delivering innovative solutions that support our customers’ evolving design requirements.”

These new inductors will be seamlessly integrated into Vishay’s global distribution network, ensuring swift availability worldwide as each new series is launched. The company’s commitment to rapid deployment of sample and production stock availability at distribution partners not only accelerates time-to-market for its customers, but also reinforces Vishay’s dedication to supporting them in an increasingly fast-paced and competitive marketplace.

Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech.^® Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.

The DNA of tech^® is a registered trademark of Vishay Intertechnology, Inc. IHLP is a registered trademark of Vishay Intertechnology, Inc.

Link to more information: https://www.vishay.com/en/inductors/

Link to product photo: https://www.flickr.com/photos/vishay/albums/72177720320263338

Editorial Contact:
Bob Decker
Redpines
Tel: +1 415 409 0233
bob.decker@redpinesgroup.com

FAQ

What is the main focus of Vishay Intertechnology's (VSH) recent product expansion?

Vishay Intertechnology's recent expansion focuses on broadening its inductor product line, adding 1800 new SKUs across more than 70 series. This includes higher inductance and voltage options, more size variations, and improved noise reduction capabilities.

How many new SKUs is Vishay (VSH) adding to its inductor product line?

Vishay Intertechnology is adding 1800 new SKUs across more than 70 series to its inductor product line.

What types of new inductors is Vishay (VSH) introducing in its product expansion?

Vishay is introducing new types of inductors including wireless charging inductors, shielded and semi-shielded drum core inductors, common-mode chokes, coupled inductors, trans-inductance voltage regulator inductors (TLVR), and high current ferrite impedance beads.

Where is Vishay Intertechnology (VSH) investing in capacity upgrades for inductor production?

Vishay is investing in capacity upgrades and extending its IHLP® production capabilities in its La Laguna plant in Gómez Palacio, Durango, Mexico, as well as in China and other areas of the Southeast Asia region.