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Company Overview
−Removed: The Company is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling critical technologies in the automotive and industrial markets.
−Removed: We are a leading supplier of power ICs and a market share leader in magnetic sensor ICs driven by our market leadership in the automotive market.
+Added: The Company is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling the most important emerging technologies in the automotive and industrial markets.
+Added: We are a leading supplier of magnetic sensor IC solutions worldwide based on market share, driven by our market leadership in the automotive market.
Our products are foundational to automotive and industrial electronic systems.
−Removed: Our sensor ICs enable our customers to precisely measure motion, speed, position and current, while our power ICs include high-temperature and high-voltage capable motor driver, power management and light emitting diode (“LED”) driver ICs.
−Removed: Our photonics portfolio provides eye-safe distance measurement and 3D imaging solutions.
+Added: Our sensor ICs enable our customers to precisely measure motion, speed, position and current, while our power ICs include high-temperature and high-voltage capable motor drivers, power management ICs, light emitting diode (“LED”) driver ICs and isolated gate drivers.
We believe that our technology expertise, combined with our deep applications knowledge and strong customer relationships, enable us to develop solutions that provide more value to customers than typical ICs.
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These mega trends have created requirements for new technologies in vehicles, both under the hood and in the cabin, to support vehicle electrification and advanced driver assistance systems (“ADAS”).
−Removed: These shifts also require technology to enable intelligence and automation in factories and to enable energy efficiency in data centers and green energy applications.
+Added: These shifts also require technology to enable intelligence and automation in factories and energy efficiency in clean energy applications.
According to industry experts, these mega trends are expected to dramatically increase the demand for sensing and power solutions like the ones we develop.
−Removed: We believe our patented portfolio of sensor and power ICs and photonics components provide the underlying technology required to establish an early lead in the market and win in the presence of larger competitors.
+Added: We believe our patented portfolio of sensor and power ICs provides the underlying technology required to establish an early lead in the market and win in the presence of larger competitors.
Our longstanding history of innovation over multiple economic and technology cycles in the semiconductor industry is built on our market leading magnetic sensor IC technology.
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Our established position as an incumbent supplier for the automotive market and our long product life cycles attest to the strength of this competitive advantage.
−Removed: Our value proposition is based on providing complete IC solutions that sense, regulate and drive a variety of mechanical systems.
+Added: Our value proposition is based on providing complete IC solutions for motion control and energy efficient systems.
This includes sensing angular or linear position, driving an electric motor or actuator, and regulating the power applied to sensing and driving circuits so they operate safely and efficiently.
−Removed: These capabilities are based on fundamental technical advances we have made in the field of Hall-effect and xMR magnetic sensors and BCD power ICs.
−Removed: We continue to be instrumental in developing Hall-effect and magnetoresistive transducers (“xMR”) and power DMOS devices on silicon, application-optimized packaging, high-temperature operation, high-speed precision signal paths for signal processing, and 100-volt (“100V”) capable Bipolar-CMOS-DMOS (“BCD”) wafer technology.
−Removed: Our photonics portfolio of ultra-miniature lasers and highly sensitive photodetectors relies on proprietary wafer and packaging technologies.
−Removed: In Hybrid Electric Vehicles (“HEV”), Electric Vehicles (“EV”) and ADAS applications, these innovations translate to increased driving range for an electric vehicle, smaller and more reliable power conversion systems, improved safety and efficiency of motor and power management systems and safer and more reliable autonomous driving through long-range object detection.
−Removed: In the industrial market, these technologies enable the automation at the heart of the industrial transformation commonly referred to as “Industry 4.0.” These innovations also improve reliability to avoid factory downtime, accurately measure current to support increased energy efficiency for high-density data centers and green energy applications and reduce the solution footprint to lower total system cost.
+Added: These capabilities are based on fundamental technical advances we have made in the field of Hall-effect and xMR magnetic sensors and Bipolar-CMOS-DMOS (“BCD”) power ICs.
+Added: We continue to be instrumental in developing Hall-effect and magnetoresistive transducers (“xMR”) and power double diffusion metal oxide semiconductor devices on silicon, application-optimized packaging, high-temperature operation, high-speed precision signal paths for signal processing, and 100-volt (“100V”) capable BCD wafer technology.
+Added: In Hybrid Electric Vehicles (“HEV”), Electric Vehicles (“EV”) and ADAS applications, these innovations translate to increased driving range for an electric vehicle, smaller and more reliable power conversion systems, improved safety and efficiency of motor and power management systems and safer and more reliable steering and braking systems.
+Added: In the industrial market, these technologies enable clean energy and automation.
+Added: These innovations improve reliability to avoid factory downtime, accurately measure current to support increased energy efficiency for high-density clean energy applications and reduce the solution footprint to lower total system cost.
We have maintained our sensor IC leadership and built our power IC business through successfully developing deep customer relationships over time.
−Removed: We commonly collaborate with customers early on over a multi-year period in order to
−Removed: design products capable of meeting demanding performance and quality requirements.
−Removed: Through this customer collaboration in product design, we believe we have unique insight into market trends and customer requirements for new, improved and innovative products.
+Added: We commonly collaborate with customers early on over a multi-year period in order to design products capable of meeting demanding performance and quality requirements.
+Added: Through this customer collaboration in product design, we believe we have unique insight into market trends and customer requirements for new, improved and
+Added: innovative products.
We believe that these insights enable us to develop differentiated solutions, often in advance of our competitors.
−Removed: Our customer list includes virtually all of the world’s top automotive and industrial companies.
+Added: Our customer list includes virtually all of the world’s top automotive companies and a large quantity of leading industrial companies.
We are a preferred vendor to tier-one suppliers in the automotive industry that supply parts or systems directly to original equipment manufacturers (“OEMs”).
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As part of our strategic transformation, we began to streamline manufacturing to reduce fixed costs.
−Removed: This resulted in the divestiture of our wafer manufacturing facility, Polar Semiconductor, LLC (“PSL”), in March 2020 (see “The PSL Divestiture” below), and the closure of our manufacturing facility in Thailand (the “AMTC Facility”) as of March 2021.
−Removed: In our current fabless, asset-lite manufacturing model, we use external wafer manufacturing consisting of both standard and proprietary processes, along with internal and external assembly and test capabilities to provide both flexibility and scale.
+Added: This resulted in the divestiture of our wafer manufacturing facility, Polar Semiconductor, LLC (“PSL”), in March 2020 (the “PSL Divestiture”), and the closure of our manufacturing facility in Thailand (the “AMTC Facility”) as of March 2021.
+Added: In our current fabless, asset-lite manufacturing model, we use external wafer manufacturing consisting of both standard and proprietary processes, along with internal and external assembly and internal test capabilities to provide both flexibility and scale.
Through our subcontractor manufacturers, we are able to employ our proprietary wafer fabrication processes while leveraging our subcontractors’ manufacturing technologies and high-volume capacity.
Our use of both internal and external assembly and test capabilities is designed to balance the protection of our proprietary technology and processes while achieving automotive quality manufacturing at scale.
−Removed: Within the global semiconductor industry, we focus on the magnetic sensor, power management IC and photonic Light Detection and Ranging (“LiDAR”) markets.
−Removed: Powertrain Markets
+Added: Within the global semiconductor industry, we focus on the magnetic sensor and power management IC markets.
+Added: We define e-Mobility as the electrification of vehicles and the increasing adoption of advance safety-related driver assistance systems, known as ADAS.
We are a leading provider of sensing and power solutions for vehicle electrification, building on our decades of experience in powertrain efficiency and performance leadership in technologies that reduce emissions.
The ability to improve efficiency is critical as OEMs strive to comply with increasingly stringent regulations and heightened customer awareness of the environmental impact of high emissions.
−Removed: As xEVs become a meaningful share of the automotive market, OEMs face challenges and opportunities to change system architectures in order to reduce complexities while achieving optimal system efficiency and vehicle range.
+Added: As EVs become a meaningful share of the automotive market, OEMs face challenges and opportunities to change system architectures in order to reduce complexities while achieving optimal system efficiency and vehicle range.
This presents a number of new socket opportunities for semiconductors, and we expect our content per vehicle will continue to increase, driven by research and development innovation to serve this high-growth market.
−Removed: Because the combination of an internal combustion engine and an electric powertrain balances efficiency and cost, production of vehicles that have both ICE and an electric powertrain are expected to represent the majority of xEV shipments through 2030.
−Removed: As a proven and experienced supplier of ICE powertrain ICs that support engine efficiency, and as an expert in delivering ICs supporting power efficiency in HEV and electric vehicles, we believe we are uniquely positioned to support the intersection of ICE and electric powertrains, providing the critical automotive-grade components required to enable energy-efficient and cost-effective hybrid vehicles.
−Removed: We believe this allows us to take advantage of the significant semiconductor content increases expected to result from the xEV migration.
−Removed: ADAS and Autonomous Vehicles
−Removed: Advanced Driver Assistance Systems (“ADAS”) capabilities are considered some of the most desirable features in modern vehicles and are already being adopted in vehicles worldwide.
+Added: As an expert in delivering ICs supporting efficient power conversion in HEV and EVs, we believe we are uniquely positioned to support increased electrification, providing the critical automotive-grade components required to enable energy-efficient and cost-effective vehicles.
+Added: We believe this allows us to take advantage of the significant semiconductor content increases expected to result from the EV migration and strong growth of electrified powertrains over the coming years.
+Added: Our September 2022 acquisition of Heyday Integrated Circuits (“Heyday”) provides us with additional content opportunities in every fully electric vehicle.
+Added: This first-to-market technology, which integrates an isolated DC-DC and isolated gate driver (“IGD”) is more efficient than competitive solutions that require two chips.
+Added: This not only allows customers to reduce their printed circuit boards (“PCBs”), but also enables the entire system, like an on-board charger, to shrink.
+Added: We continue to innovate this technology, which will enable gallium nitride (“GaN”) and silicon carbide (“SiC”) solutions in the electric powertrain.
+Added: ADAS capabilities are considered some of the most desirable features in modern vehicles and are currently being adopted in vehicles worldwide.
Industry experts expect ADAS feature adoption will continue to increase over time.
−Removed: ADAS is a precursor to fully autonomous vehicles, and as ADAS features become more sophisticated, and adoption increases, demand for our sensor and power ICs is expected to expand from steering into additional braking and new radar and LiDAR applications.
−Removed: Based on industry forecasts, we believe the transition to vehicles that incorporate ADAS level 2 through 5 technologies and strong adoption of sensors and power management products to
−Removed: support these vehicles will enable us to increase our total available market related to ADAS and related Safety & Chassis technologies.
−Removed: Our devices play a key role in advanced driver assistance systems, which have three main functions:
−Removed: sense, think and act.
−Removed: Our solutions today address the critical “act” function, for example, reacting to system inputs to enable collision avoidance, lane keeping, or self-park features through automatic steering and braking.
+Added: ADAS is a precursor to fully autonomous vehicles.
+Added: While many ADAS-equipped vehicles are being produced today, as ADAS features become more sophisticated and increasingly adopted, demand for our sensor and power ICs is expected to expand in steering and braking systems.
+Added: Based on industry forecasts, we believe the transition to vehicles that incorporate ADAS Level 2
+Added: through 5 technologies and strong adoption of sensors and power management products to support these vehicles, will enable us to increase our total available market related to ADAS and related safety and chassis technologies.
+Added: Our devices play a key role in ADAS applications, reacting to system inputs to enable collision avoidance, lane keeping, automatic emergency braking or self-park features through automatic steering and braking.
A steering system equipped with even a modest degree of automation utilizes products across our entire portfolio, including sensors, power management ICs and motor driver ICs, which we believe is indicative of the size of our potential market opportunity as ADAS applications become increasingly more sophisticated.
−Removed: Our portfolio of photonic and 3D sensing devices, through our acquisition of Voxtel, Inc.
−Removed: (“Voxtel”), addresses the “sense” opportunity in ADAS systems.
−Removed: Our LiDAR components, which include ultra-miniature lasers, photodetectors and custom integrated circuits, focus on eye-safe technology that provides high-accuracy distance measurements used to generate 3D LiDAR images required for object detection and avoidance when driving at highway speeds.
−Removed: While the market is still in the early stages of adopting new ADAS technologies, we already ship more than 150 million devices every year that enable fundamental safety and drive features in ADAS applications.
−Removed: We believe our track record of supplying devices for safety applications and experience reliably supporting ADAS features in high-end vehicles, combined with increased penetration of ADAS as it scales from luxury vehicles to mainstream and economy vehicles, positions us to expand our early lead in this rapidly growing opportunity.
−Removed: Data Center and Communications Infrastructure
−Removed: Exponential growth of internet traffic, proliferation of connected devices and global demand for cloud computing services have been driving rapid growth in data center and communications infrastructure spending.
−Removed: A key challenge faced by data center operators is power management.
−Removed: Continued growth of data center buildouts requires advanced cooling and efficient power delivery technologies.
−Removed: This has led to increased demand for energy management technologies that reduce cooling costs and improve operational efficiency.
−Removed: Our single chip, small form factor motor driver ICs reduce the size and increase the efficiency of 3-phase fans used to cool the latest generation of servers.
−Removed: Our “lossless” current sensor ICs are used to improve the efficiency of server power supplies.
−Removed: Our 100V BCD wafer process technology and galvanically isolated current sensors are uniquely suited for higher voltage operation and therefore, we believe our motor driver and current sensor ICs will gain market share as data centers convert to 48-volt operating voltages.
−Removed: Smart Factories and Energy Efficiency
−Removed: The advent of Industry 4.0, increasing demand for renewable energy and the adoption of green technologies represent additional meaningful growth opportunities for us.
−Removed: We believe we can leverage our technology leadership in solutions optimized for high-temperature, high-voltage and high-reliability conditions to expand our presence in these markets.
−Removed: In particular, we believe we have the potential to leverage the synergy between our power and sensor solutions, including motor drivers, voltage regulators, display drivers, and current, position and speed sensors, into under-penetrated opportunities within industrial automation, and personal mobility, as well as green energy opportunities including renewable energy applications, like solar.
−Removed: Market Share Expansion
−Removed: Within our target markets, a key element of our growth strategy is to increase share through portfolio and customer expansion.
−Removed: We are a market share leader in the magnetic sensor IC market and believe there is still considerable runway to expand our share and continue to grow this foundational business.
+Added: While the market is still in the early stages of adopting new ADAS technologies, our solutions do not require waiting for full autonomy;
+Added: we already ship a significant volume of devices every year that enable ADAS capabilities.
+Added: Vehicles equipped with Level 1 ADAS feature sets use Allegro devices.
+Added: We have been helping to increase the safety and drive features in ADAS applications of steering and braking systems for years and believe our track record of supplying devices for safety applications and experience with supporting ADAS features in high-end vehicles, combined with increased penetration of ADAS as it scales from luxury vehicles to mainstream and economy vehicles, positions us to expand our business to capitalize on this rapidly growing opportunity.
+Added: Along with increased adoption, there will be increased content opportunities as ADAS technology and system architectures continue to advance.
+Added: Our automotive first philosophy resonates with our industrial customers who appreciate our rigorous quality standards, devices designed to withstand extreme environments and our long product lifecycle of 10 years or more.
+Added: These customers are in our target markets of clean energy, defined as renewable energy generation, storage and distribution, EV charging infrastructure and data center.
+Added: Renewable energy, especially solar, and EV charging are being driven by government regulations for reduced emissions and the increased electrification of a variety of products and processes.
+Added: We can meet the needs of a variety of solar and EV charging technologies and types.
+Added: Having the technology and products to support these markets from their infancy provides us an advantage in helping customers bring their products to market more quickly.
+Added: This enables us to learn with our customers and solve challenges as they arise.
+Added: Additionally, our IGDs will have a strong presence in these power conversion markets, enabling GaN and SiC-based platforms.
+Added: We offer one of the largest portfolios of current sensors on the market today, including those with integrated components, requiring less board space.
+Added: Our “lossless” current sensor ICs are used to improve efficiency in these power conversion systems.
+Added: Our 100V BCD wafer process technology and galvanically isolated current sensors are suited for higher voltage operation, and we believe the demand for current sensor ICs will increase as more solar and EV applications come to market.
+Added: In addition, we expect our IGD technology to enable us to use a single, small-footprint package to significantly reduce system design time and complexity.
+Added: Our motor drivers are heavily adopted in the data center space, mainly for thermal efficiency, as these products reduce complexity and design time, while also reducing the energy consumption required to cool servers.
+Added: With the growing adoption of factory automation, there is increasing demand for precise motion control and energy efficient technologies representing additional meaningful growth opportunities for us.
+Added: We believe we can leverage our technology leadership in solutions optimized for high-accuracy, high-voltage and high-reliability conditions to expand our presence in these markets.
+Added: Many of these applications require the same safety and accuracy, which we have designed into our automotive first devices.
+Added: In particular, we believe we have the potential to leverage the synergy between our power and sensor solutions, including motor drivers, voltage regulators, display drivers, and current, position and speed sensors, into under-penetrated opportunities within industrial automation.
+Added: Traditional Automotive Applications
+Added: The internal combustion engine (“ICE”) will continue to exist in some form for the foreseeable future, either in pure ICE vehicles or hybrids, the largest portion of the EV market for the next few years.
+Added: OEMs continue to improve their fuel mileage and look to Allegro to help create the most efficient ICE powertrains possible.
+Added: We have decades of experience as a proven supplier in ICE powertrains to support engine efficiency.
+Added: Safety, comfort and convenience business will continue to evolve with vehicle electrification.
+Added: Systems that historically relied on engine temperature or mechanical energy are now electrifying, and new system technologies are being rolled out.
+Added: Products our customers have relied on for lighting and infotainment are becoming more energy efficient as we develop more
+Added: advanced products and innovate with our customers.
+Added: Additionally, our work to improve electrified powertrains is translating into an electrified thermal management system, where we can leverage the trust we have established with OEMs based on our prior experience to introduce and sell new products.
+Added: Broad Industrial
+Added: The Broad Industrial market includes our personal mobility, or two wheeler market, and a number of other end uses from heavy equipment to telecom connectivity.
+Added: Our two-wheeler business is seeing similar electrification trends as larger vehicles.
+Added: Our solutions are proven in electrified powertrains and in small form factors needed in these applications.
+Added: These markets are looking for many of the same devices our automotive customers use, from high voltage and high temperature performance to long life cycle, small form factors, integration and unique packaging.
+Added: Our automotive quality standards give industrial customers trust in our products.
+Added: Consumer & Computer Markets
+Added: The consumer and computer markets include smart home applications, personal computers and consumer electronics.
+Added: Our devices enable our customers in these markets to manufacture more energy efficient products with extended battery life.
+Added: Market Opportunity
+Added: Within our target markets, a key element of our growth strategy is to increase our business through portfolio and customer expansion.
+Added: We are a market share leader in the magnetic sensor IC market, and we believe there is considerable opportunity to continue to grow this foundational business.
For example, over the last five years, we introduced new position sensor ICs and quickly ramped revenue in motion control applications, particularly in the ADAS market.
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We are also just beginning to leverage our power IC products to increase our total content within automotive and industrial applications.
−Removed: For example, over the last five years, we introduced new power devices, including motor driver ICs, and ramped revenue in the automotive ADAS and data center markets.
−Removed: Our revenue in these new areas has grown approximately 50% faster than the overall growth of the brushless direct current (“BLDC”) motor market during the same period.
−Removed: We believe this is indicative of the success of our footprint expansion strategy and the potential for significant share gains with continued execution on that strategy.
+Added: For example, over the last five years, we introduced new power devices, including motor driver ICs, and grew revenue in the automotive ADAS and data center markets.
+Added: Our net sales in these new areas have grown approximately 50% faster than the overall growth of the brushless direct current (“BLDC”) motor market during the same period.
+Added: We believe this is indicative of the success of our footprint expansion strategy and the potential for significant growth with continued execution on that strategy.
+Added: Our latest opportunity to expand our market presence is with our new IGDs.
+Added: These solutions will have applications in power conversion in EVs, such as on-board chargers and traction inverters, as well as clean energy.
Increasing our Served Available Market
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We believe the automotive market is very attractive given the rigorous quality and safety requirements that create meaningful challenges for new competitors and the significant technology shifts currently underway that are expected to significantly increase semiconductor content per vehicle.
−Removed: With the growth of semiconductor content opportunities related to xEV and ADAS penetration already accelerating, we have seen significant increases in our electronic system content per vehicle.
−Removed: • We average thirteen devices per vehicle, with as many as 80 devices in a high-end, luxury vehicle adopting early ADAS features.
−Removed: We believe the rapid increase in adoption of ADAS features will result in a similar increase in our average number of devices per vehicle as those features move into mid- and lower-range vehicles.
−Removed: • In addition, in a popular mid-sized 2022 model sedan shipped worldwide, our content per vehicle increased by over 50% as the vehicle model transitioned from ICE to a battery EV.
−Removed: According to our internal estimates and third-party sources, in a standard ICE model, we believe that we have a total opportunity of $37 increasing up to $59 of potential content in xEV vehicles.
−Removed: • Furthermore, in a mainstream North American pickup truck platform, our content per vehicle nearly tripled from 2017 to 2020 as a result of design wins for our solutions that enable smarter systems for self-park, lane assist and other related ADAS features.
−Removed: There is a similar dynamic in the industrial market, where Industry 4.0, the equivalent of the Internet of Things for the factory, is revolutionizing how factories and factory equipment are designed and deployed, and the need for motor and motion control technology that is reliable and energy efficient has dramatically increased.
−Removed: We believe new content opportunities exist in the markets for BLDC motors and motion sensors, where we believe our technology and performance reliability make us uniquely capable of delivering on customer expectations.
−Removed: In addition, as edge devices become more intelligent, they require additional sensing, motor control and power regulation.
+Added: With the growth of semiconductor content opportunities related to EV and ADAS penetration already accelerating, we have seen significant increases in our electronic system content per vehicle.
+Added: • Our opportunity for vehicles adopting ADAS features is expected to grow as the adoption moves from high end vehicles to mid- and lower-range vehicles.
+Added: An additional benefit from ADAS is the content opportunity increase per system as new architectures are adopted.
+Added: We believe that moving from today’s systems to electromechanical braking and steer-by-wire will nearly double the devices required per system.
+Added: • According to our internal estimates and third-party sources, in a standard ICE model, we believe that we have a total opportunity of approximately $39 increasing to approximately $100 of potential content in an EV.
+Added: • In a popular mid-sized 2022 model sedan shipped worldwide, our content per vehicle increased by over 50% as the vehicle model transitioned from ICE to a battery EV.
+Added: There is a similar dynamic in the industrial market, where clean energy and automation are two mega trends requiring more semiconductor content as they gain mainstream adoption.
+Added: Our current sensors, motor drivers, and position sensors’ performance and reliability make them uniquely capable of delivering on customer expectations for both energy efficiency and motion control.
Competitive Strengths
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As a leader in sensor and power ICs, we have a strong track record of winning against both established competitors and new entrants.
−Removed: We believe that by effectively navigating technology transitions, maintaining close customer relationships and anticipating market trends, we have established a leadership position in the automotive market and are rapidly gaining share in our targeted industrial markets, including factory automation, data center and green energy.
+Added: We believe that by effectively navigating technology transitions, maintaining close customer relationships and anticipating market trends, we have established a leadership position in the automotive market and are rapidly gaining presence in our targeted industrial markets, including factory automation and clean energy.
Our research and development investment strategy prioritizes directing our internal investment resources toward high-value, high-growth opportunities where we believe we can apply our competitive strengths to establish a leading position and defend that position over successive product generations.
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We are a market share leader in magnetic sensor ICs.
−Removed: We believe that we can continue to increase our share and that our strong market presence and continued innovation in proprietary sensor and power IC technologies will enable us to establish leadership positions for new products in existing and emerging applications.
−Removed: For example, as a result of our sensor IC leadership in ICE, we have been able to establish an early footprint in the emerging HEV and EV market and in advanced driver assistance systems.
+Added: We believe that we can continue to increase our market presence and that our continued innovation in proprietary sensor and power IC technologies will enable us to establish leadership positions for new products in existing and emerging applications.
+Added: For example, as a result of our sensor IC leadership in ICE, we have been able to establish a footprint in the emerging HEV and EV market and in ADAS.
Growth in electronics in these applications is outpacing total vehicle growth and contributing significantly to the increasing semiconductor content per vehicle.
−Removed: As a proven automotive supplier, with high application content per vehicle in internal combustion and comfort systems, we have established an early position in these high-growth ADAS and xEV applications that we believe will result in a substantial increase in our content per vehicle progressively over the next decade.
−Removed: Our average product life cycle is ten years or more and we believe that product longevity and our ability to compete in our target markets will enable sustained market share gains over a long period.
+Added: As a proven automotive supplier, with high application content per vehicle in internal combustion and comfort systems, we have established a position in these high-growth ADAS and EV applications that we believe will result in a substantial increase in our content per vehicle progressively over the next decade.
+Added: Our average product life cycle is 10 years or more, and we believe that product longevity and our ability to compete in our target markets will enable sustained growth over a long period.
Established technology leadership, strong intellectual property and system-level expertise
We believe our technology leadership is based on our strong intellectual property portfolio in analog mixed-signal circuit design, our sensor and power IC process technology innovations, and our intelligent packaging expertise.
−Removed: Additionally, we believe our system-level knowledge resulting from close customer collaboration enables us to understand our customers’ specific system requirements and more quickly and effectively develop advanced solutions to meet their
+Added: Additionally, we believe our system-level knowledge resulting from close customer collaboration enables us to understand our customers’ specific system requirements and more quickly and effectively develop advanced solutions to meet their needs.
For example, our innovations in Hall-effect and xMR sensor ICs include assemblies with integrated magnets and optimized silicon design to enable precise robust performance in high-temperature and high-voltage environments.
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We have expanded innovations in the field of magnetic sensor ICs to the power IC market, where our solutions are developed using our proprietary 100V-capable wafer technology, which enables the efficient integration of various power circuits and proprietary motor control algorithms into one small form factor device.
−Removed: This reduces the solution footprint, increases system efficiency and simplifies our customer’s motor design process, all of which represent key customer requirements.
−Removed: In our newly acquired photonics portfolio, our ultra-miniature lasers provide an eye-safe, long-range light source that can be detected by our proprietary Indium Gallium Arsenide (“InGaAs”) photodiodes that are tightly coupled to our high accuracy, high speed, silicon read out integrated circuits (“ROICs”).
−Removed: We believe these innovations have created tangible performance benefits in a variety of customer end products across a broad range of applications, from traditional 12-volt internal combustion engines to 48-volt mild hybrid vehicles, autonomous vehicles, and from industrial robotics to server and data center hardware.
+Added: This reduces the solution footprint, increases system efficiency and simplifies our customers’ motor design process, all of which represent key customer requirements.
+Added: In our newly acquired IGDs, our integration of an isolated DC-AC and an IGD enable an up to 50% size reduction of a PCB, and an up to 40% increase in efficiency.
+Added: We believe these innovations have created tangible performance benefits in a variety of customer end products across a broad range of applications, from traditional 12-volt internal combustion engines to fully electric vehicles, autonomous vehicles, and from industrial automation to clean energy.
Broadly diversified business focused on high-value customers and end markets
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We believe this diversity contributes to our growth opportunity by providing us early access to emerging customer applications and helping us to maintain relative stability in net sales across the business cycles common to the semiconductor industry.
−Removed: During the most recent global recession in 2008, and during the COVID-19 pandemic, our regional and target market diversification enabled us to partially offset regional or customer demand weakness.
−Removed: For example, recently, our presence in growing, high content electric vehicle systems has helped offset reductions in automotive production generally, and we have been able to capitalize on increased demand for data center infrastructure.
+Added: During economic declines, such as during the COVID-19 pandemic, our regional and target market diversification enabled us to partially offset regional or customer demand weakness.
+Added: For example, recently, our presence in growing, high content electric vehicle systems has helped offset reductions in automotive production generally, and we have been able to capitalize on increased demand for clean energy infrastructure.
Diversification, particularly geographically and within the automotive industry, has enabled us to continue to invest across business cycles, pursue multiple growth opportunities and employ our research and development efforts and technology expertise across multiple products and end markets.
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In addition, for many of our customers, we are among a limited number of suppliers qualified to compete for next generation product designs, and in many of our design wins, we are the sole supplier to the customer.
−Removed: This strong competitive position allows us to gain insight into the specifications for our customers’ evolving products and enables us to develop innovative solutions to meet their needs, providing us with multiple opportunities to secure continued business.
+Added: This strong competitive position allows us to gain insight into the specifications for our customers’ evolving
+Added: products and enables us to develop innovative solutions to meet their needs, providing us with multiple opportunities to secure continued business.
In addition, our customer diversity and longstanding track record with key customers, particularly in the automotive market, provides us with a deep channel into which we can introduce new products.
−Removed: As a result, based on our internal metrics, we believe we have sharp visibility into, and understanding of, long-term revenue trends.
+Added: As a result, based on our internal metrics, we believe we have visibility into, and understanding of, long-term revenue trends.
Fabless, asset-lite, scalable operations with flexible, advanced manufacturing infrastructure
Over the course of our multi-year strategic transformation, including our completion of the PSL Divestiture in March 2020, we became a fabless semiconductor company, while retaining certain ownership rights in and a strategic customer relationship with PSL to enhance our security of supply.
−Removed: This has contributed to improving our historical gross margins over the last four years from the 40% range to the 54% range today.
+Added: Consolidating our internal manufacturing footprint, leveraging our supplier partners, and focusing on product innovation and customer solutions has contributed to improving our historical gross margins over the last several years from a 40% range to the 56% range today.
Becoming a fabless semiconductor company has also enabled us to access the technology base available through partnerships with strategic contract semiconductor wafer fabrication plants (“fabs”) to which we bring our advanced proprietary processes.
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Our primary internal assembly and test facility based in Manila, Philippines (the “AMPI Facility”) provides high-volume production capacity while facilitating the protection of our proprietary process technology, particularly for the assembly and testing of our magnetic sensor products.
−Removed: Additionally, we make use of other third-party assembly and second-source
−Removed: manufacturers for industry standard packaging.
−Removed: We are certified under IATF 16949:2016, the automotive sector-specific quality management system standard, and are a major supplier to Japanese automotive manufacturers, who are recognized industry-wide as having very stringent quality standards with respect to safety and reliability.
−Removed: We also have qualified and use external assembly and test facilities to enable flexible capacity utilization and technology access.
−Removed: Well-positioned to access the Japan markets
−Removed: Japan remains a very important geographic market for automotive and industrial suppliers and has historically been difficult to penetrate for companies headquartered outside of Japan.
−Removed: We have developed direct end customer relationships with market leading tier-one suppliers and now have an extensive sales, distribution, technical and quality support network in Japan.
−Removed: Through our Japan business development and technical center, we are well-positioned to directly market to and support Japanese manufacturers’ key development projects.
−Removed: We believe we are well-positioned to expand our business in Japan, particularly in the automotive and industrial automation markets.
−Removed: Relationships with leading Japanese customers are particularly valuable since the solutions created for these customers are often quickly adopted by other manufacturers outside of Japan.
+Added: Additionally, we make use of other third-party assembly and second-source manufacturers for industry standard packaging.
+Added: We are certified under IATF 16949:2016, the automotive sector-specific quality management system standard, and are a major supplier to automotive manufacturers world-wide, who are recognized as having very stringent quality standards with respect to safety and reliability.
+Added: We also have qualified and use external assembly to enable flexible capacity utilization and technology access.
+Added: Well-positioned to access the global automotive and industrial markets
+Added: We have an extensive sales, distribution, technical and quality support network in the U.S., Europe and Asia to support the direct distribution of our products.
+Added: We believe we are well-positioned to expand our business in all of these markets, particularly in the automotive and industrial automation markets.
Experienced and established management team
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Our management team is committed to innovating with purpose, supporting sustainability and managing with transparency.
−Removed: We believe that our executive management team’s ability to successfully execute on our strategic transformation demonstrates their strong capabilities.
−Removed: Additionally, their experience of effectively managing through various industry cycles and technology transitions provides us with steady, reliable leadership, uniquely capable of identifying strong investments, executing through changes and maintaining stability during periods of market uncertainty.
+Added: Their experience of effectively managing through various industry cycles and technology transitions provides us with steady, reliable leadership, uniquely capable of identifying strong investments, executing through changes and maintaining stability during periods of market uncertainty.
Company Strategy
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We believe that our investments in research and development in the areas of product design, automotive-grade wafer fabrication technology and IC packaging development are critical to maintaining our competitive advantage.
−Removed: In both the automotive and industrial markets, major technology shifts driven by disruptive technologies are creating high-growth opportunities in areas such as xEVs, ADAS, Industry 4.0, data centers and green energy applications.
+Added: In both the automotive and industrial markets, major technology shifts driven by disruptive technologies are creating high-growth
+Added: opportunities in areas such as e-Mobility, clean energy and automation.
We believe the convergence of requirements for intelligence and energy efficiency within these emerging markets is directly aligned with our core competencies.
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We believe our philosophy of designing for automotive safety and reliability gives us a meaningful lead over new entrants attempting to enter the automotive market by modifying existing solutions originally developed for consumer and other less demanding applications.
−Removed: For example, we are applying this philosophy of innovation, quality and reliability to our photonics portfolio which supplies components into safety-critical LiDAR applications.
−Removed: We also believe we can use our expertise in designing for the automotive market and our expanding product portfolio to capitalize on increasing demand among industrial customers for ruggedized solutions that meet the
−Removed: highest quality and reliability standards.
+Added: We also believe we can use our expertise in designing for the automotive market and our expanding product portfolio to capitalize on increasing demand among industrial customers for ruggedized solutions that meet the highest quality and reliability standards.
Additionally, in our experience, demand for solutions that meet or exceed stringent safety and reliability specifications supports higher ASPs and slower ASP declines over time than are typical for our industry.
Invest to lead in chosen markets and apply our intellectual property and technology to pursue adjacent growth markets
−Removed: We intend to continue to invest in technology advancements and our intellectual property portfolio to maintain the number one market share position in magnetic sensor ICs and achieve leadership positions in power ICs within our target markets.
+Added: We intend to continue to invest in technology advancements and our intellectual property portfolio to maintain the leading market share position in magnetic sensor ICs and achieve leadership positions in power ICs within our target markets.
We believe we can maximize our investments by leveraging our proven technology and existing research and development, sales and support efforts to take advantage of synergistic opportunities in new, adjacent growth markets.
−Removed: • We target our patented sensor IC, photonics, and power-related intellectual property to address increasing electronics content in automotive applications based on the increasing adoption of electric powertrains and advanced safety systems for semi-autonomous and autonomous vehicles.
−Removed: • We are investing in advanced current sensor IC and sensor-less motor control technologies to target industrial solar and data center applications where we believe the trend towards increasing energy efficiency provides an opportunity to apply our rich history of innovation to rapidly gain share and accelerate our growth.
−Removed: • We are aligning our application domain knowledge, sensor design skills and power management and motor control algorithm expertise to capitalize on the trend towards increasing automation and electronics content inherent in the Industry 4.0 transformation.
+Added: • We target our patented sensor IC, and power-related intellectual property to address increasing electronics content in automotive applications based on the increasing adoption of electric powertrains and advanced safety systems for semi-autonomous and autonomous vehicles.
+Added: • We are investing in advanced current sensor IC and sensor-less motor control technologies to target industrial clean energy applications where we believe the trend towards increasing energy efficiency provides an opportunity to apply our rich history of innovation to rapidly accelerate our growth.
+Added: • We are aligning our application domain knowledge, sensor design skills and power management and motor control algorithm expertise to capitalize on the trend towards increasing automation and electronics content inherent in the industrial automation transformation.
We believe our strategy of leveraging our key capabilities to target adjacent growth markets will enable us to achieve higher returns on our research and development investments.
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We strive to improve our profitability by both rapidly introducing new products with value-added features and reducing our manufacturing costs through our fabless, asset-lite manufacturing model.
−Removed: Over the last four years, we have improved our gross margin from the 40% range historically to the 50% range.
+Added: Over the last several years, we have
+Added: improved our gross margin from a 40% range historically to the 56% range.
We expect to continue to improve our product mix by developing new products for growth markets where we believe we can generate higher ASPs and/or higher gross margins.
−Removed: We also intend to further our relationships with key foundry suppliers to apply our product and applications knowledge to develop differentiated and cost-efficient wafer processes and packages.
+Added: We also intend to further our relationships with key foundry suppliers to apply our products and applications knowledge to develop differentiated and cost-efficient wafer processes and packages.
We believe we can reduce our manufacturing costs by leveraging the advanced manufacturing capabilities of our strategic suppliers, implementing more cost-effective packaging technologies and leveraging both internal and external assembly and test capacity to reduce our capital requirements, lower our operating costs, enhance reliability of supply and support our continued growth.
We intend to continue to choose the industry’s leading manufacturing partners to maintain the quality of our products for the automotive market, to ensure continuity of supply and to best protect our intellectual property.
−Removed: Pursue selective acquisitions and other strategic transactions
−Removed: We evaluate and pursue selective acquisitions and transactions to facilitate our entrance into new applications, add to our intellectual property portfolio and design resources, and accelerate our growth.
−Removed: From time to time, we acquire companies, technologies or assets and participate in joint ventures when we believe they will cost effectively and rapidly improve our product development or manufacturing capabilities or complement our existing product offerings.
+Added: Selectively pursue acquisitions and other strategic transactions
+Added: We evaluate and selectively pursue acquisitions and transactions as an integral part of our strategy to supplement organic growth.
+Added: Acquisitions should accelerate our growth in strategic e-Mobility and industrial markets, extend or enhance our existing technology expertise, and leverage our existing sales channels.
Maintain sustainability efforts
−Removed: We intend to continue to innovate with purpose, aiming to address critical global challenges related to energy efficiency, vehicle emissions and clean and renewable energy with our sensing and power management product portfolio.
+Added: We intend to continue to innovate with purpose, aiming to help address critical global challenges related to energy efficiency, vehicle emissions and clean and renewable energy with our sensing and power management product portfolio.
In addition, we strive to operate our business in a socially responsible and environmentally sustainable manner, and with the goals of maintaining a dedication to social responsibility in our supply chain and disclosing the environmental impact of our business operations.
+Added: We identified five goals that help to inform our ESG strategy:
+Added: (1) maximize the positive impact of our products, (2) build a diverse and innovative workforce, (3) minimize our impact on the planet, (4) engage our supply chain to advance sustainability, and (5) cultivate opportunities in local communities.
Company Products and Solutions
−Removed: Our product portfolio includes over 1,000 products across a range of high-performance analog mixed-signal semiconductors and photonic components.
−Removed: Our magnetic sensor IC, power IC and photonics solutions address three main electronic system functions – sense, regulate and drive.
−Removed: We apply our deep technology know-how to deliver:
−Removed: • Sensing of speed, position, current and 3D distance imaging to improve vehicle fuel efficiency and CO2 emissions, enable safer cars through object detection (ADAS “sense”) and collision avoidance (ADAS “act”), and enhance factory automation and green energy systems;
−Removed: • Regulation of systems to improve safety, improve power efficiency and ultimately reduce solution size;
−Removed: • Driving motors through our advanced, proprietary algorithms that provide industry leading reliability and energy efficiency, with minimal audible noise and vibration.
+Added: Our product portfolio includes over 1,000 products across a range of high-performance analog mixed-signal semiconductors.
+Added: We apply our deep technology know-how to deliver magnetic sensing IC and power IC solutions to:
+Added: • Sense speed, position, and current to enable electric powertrains, improve vehicle fuel efficiency and CO2 emissions, enable safer cars through ADAS safety features, and enhance factory automation and clean energy systems;
+Added: • Regulate systems to improve safety and power efficiency and ultimately reduce solution size;
+Added: • Drive motors through our advanced, proprietary algorithms that provide industry leading reliability and energy efficiency, with minimal audible noise and vibration.
Magnetic Sensor ICs
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Our portfolio of magnetic sensor ICs includes the following:
+Added: • Current Sensor ICs :
+Added: Current sensor ICs provide output signals proportional to the overall strength of a magnetic field created by a current carrying conductor.
+Added: We have developed a broad portfolio of current sensors to meet multiple voltage and application needs for our customers.
+Added: Current sensor ICs are used to improve energy efficiency in a broad range of applications, on-board chargers, DC-DC converters, inverters, industrial motors, solar inverters, and EV charging infrastructure.
• Position Sensor ICs :
Position sensor ICs provide an analog or digital voltage output that measures the intensity of a magnetic field, thereby establishing a precise position.
−Removed: In automotive applications, our position sensor ICs are used to improve safety applications such as seatbelt detection, ADAS applications such as advanced power steering and braking systems, ICE powertrain systems such as clutch and fork position in advanced transmissions, and mild HEV powertrain systems such as the shaft position of a starter generator.
+Added: In automotive applications, our position sensor ICs are used to improve safety applications such as ADAS power steering and braking systems, mild HEV powertrain systems such as the shaft position of a starter generator and ICE powertrain systems such as clutch and fork position in advanced transmissions.
+Added: Our TMR Angle Sensor ICs offer high resolution position feedback and the safety diagnostics required for adoption in advanced ADAS motor position applications.
• Speed Sensor ICs:
Speed sensor ICs detect and process the magnetic fields created by a rotating gear tooth or ring magnet with the output being a digital reading proportional to speed.
−Removed: These sensor ICs are used in camshaft/crankshaft and transmission systems and employ proprietary algorithms to reduce CO2 emissions and improve fuel economy of combustion engines.
−Removed: • Current Sensor ICs :
−Removed: Current sensor ICs provide output signals proportional to the overall strength of a magnetic field created by a current carrying conductor.
−Removed: Current sensor ICs are used to improve energy efficiency in a broad range of applications, from xEV powertrain, industrial motors, and solar inverters to refrigerators and air conditioners.
−Removed: Our power IC portfolio is comprised of high-temperature and high-voltage capable motor driver ICs, regulator power management ICs and LED driver ICs, which allow our customers to design safer, smaller and more power-efficient systems.
+Added: These sensor ICs are used in camshaft/
+Added: crankshaft and transmission systems and employ proprietary algorithms for high accuracy, leading to reduced CO2 emissions and improved fuel economy of combustion engines.
+Added: Additionally, xMR wheel speed sensors play an important role to increase the safety of ADAS braking systems.
+Added: Our power IC portfolio is comprised of high-temperature and high-voltage capable motor driver ICs, regulator power management ICs, LED driver ICs and high-voltage IGDs, which allow our customers to design safer, smaller and more power-efficient systems.
We employ embedded algorithms that simplify system-level design, reduce audible noise, and increase start-up reliability in BLDC motors and fans.
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Motor driver ICs contain the power drivers and the sequencing logic to drive the coils of a variety of motors.
−Removed: Our motor driver ICs utilize embedded algorithms to improve energy efficiency and motion control in HEV and EV systems, automotive fans and pumps, data center cooling fans, robotics and home appliances.
+Added: Our motor driver ICs utilize embedded algorithms to improve energy efficiency and motion control in HEV and EV systems, automotive fans and pumps, data center cooling fans, automation and home appliances.
• Regulator and LED Driver ICs :
−Removed: As the industry transitions to more highly integrated products, our portfolio of regulator ICs, and power management ICs (“PMICs”) is used extensively in under-hood automotive ADAS and
−Removed: powertrain systems.
+Added: As the industry transitions to more highly integrated products, our portfolio of regulator ICs, and power management ICs (“PMICs”) is used extensively in under-hood automotive ADAS and powertrain systems.
Our LED driver ICs and modules are used in smart lighting systems to improve system safety, efficiency and size.
−Removed: Photonic and 3D Sensing Components for LiDAR Applications
−Removed: We provide photonic and advanced 3D imaging components for use in eye-safe, medium- and long-range industrial and automotive LiDAR applications.
−Removed: Our photonic components include high-performance avalanche photodiodes and photodiode arrays, ultra-miniature, eye-safe, diode-pumped solid-state (“DPSS”) lasers, and custom ROICs, such as TOF ICs.
−Removed: Our components operate within the near-infrared and short-wavelength infrared wavelength ranges, including the important eye-safe region around 1550 nanometers, which we believe is an initiative gaining momentum across the industry.
−Removed: Our suite of industry leading, eye-safe technologies provides the photonic foundation for long-range automotive scanned LiDAR (object detection up to 200 meters or more) or medium-range FLASH LiDAR systems.
−Removed: • Photodiodes :
−Removed: Our Avalanche Photodiodes (“APDs”) are used in detecting and processing the laser signal in LiDAR applications.
−Removed: Our InGaAs APDs are highly sensitive, enabling images to be obtained at a long distance and wide field of view using an eye-safe laser.
−Removed: • Eye-safe Lasers :
−Removed: Our miniature erbium-glass DPSS lasers allow for eye-safe operation at wavelengths between 1500 and 1600 nm, delivering short, high-energy pulses, with diffraction-limited beam quality and low divergence, allowing for long-distance ranging.
−Removed: Additionally, these lasers are much smaller and more cost efficient than the fiber lasers used in many current LiDAR systems.
−Removed: • Readout Integrated Circuits (ROIC) :
−Removed: Our silicon ROICs include low-noise, high speed analog and digital circuits including proprietary analog-to-digital converters (“ADCs”) and time-to-digital converters (“TDCs”) required for high performance time-of-flight (“TOF”) measurements.
−Removed: We tightly integrate our ROICs with our photodiodes using advanced assembly techniques required to achieve accurate distance measurements in LiDAR systems.
+Added: • Isolated Gate Drivers:
+Added: These devices combine isolated DC-DC and IGDs into a single package.
+Added: They are designed to complement GaN and SiC switches in high-efficiency power conversion systems.
+Added: Our IGDs enable an application that is smaller and more efficient than the competing solutions, helping to shrink PCBs and reduce total system size.
Examples of our IC products and their applications in end markets are set forth in the following table.
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• Regulators and PMICs
−Removed: • Photonics and 3D sensing ICs
−Removed: • Photonics and 3D sensing ICs
−Removed: APPLICATIONS • Engine management and transmission systems • Industry 4.0/Factory automation equipment • Gaming
−Removed: • Electric motor powertrain and charging systems for xEV • Industrial motors • PC printers and peripherals
−Removed: • ADAS, active safety, including steering and braking systems • Smart home/IoT • Personal electronics
−Removed: • Automotive LiDAR • Data center and 5G infrastructure • Energy Star household appliances including white goods
−Removed: • Comfort and convenience including in-cabin motors, HVAC, infotainment, LED lighting • EV charging infrastructure
−Removed: • Passive safety including seatbelt switches, wipers, door/window sensors, seat position, suspension • Personal mobility
−Removed: • Green energy applications
−Removed: • Industrial LiDAR
−Removed: Sustainability Efforts
−Removed: We strive to develop intelligent solutions that move the world toward a safer and more sustainable future.
+Added: • Isolated gate drivers • Isolated gate drivers
+Added: APPLICATIONS • Electric motor powertrain and charging systems for EV • EV charging infrastructure • Smart home/IoT
+Added: • ADAS, active safety, including steering and braking systems • Solar power generation, storage, and distribution • PC printers and peripherals
+Added: • Engine management and transmission systems • Factory automation equipment • Personal electronics
+Added: • Comfort and convenience including in-cabin motors, HVAC, infotainment, LED lighting • Industrial motors • Energy Star household appliances including white goods
+Added: • Passive safety including seatbelt switches, wipers, door/window sensors, seat position, suspension • Data center and 5G infrastructure
+Added: • Personal mobility
+Added: Environmental, Social and Governance Initiatives
+Added: Our commitment to ESG is intrinsic to our core value of “Innovation with Purpose” and is directly aligned to our corporate strategy and growth plans.
+Added: As we expand the reach and influence of our products, we have an important opportunity to make a positive impact on our people, communities, and the planet.
+Added: Our innovators and teams are not only focused on solving customer challenges like reducing emissions, making applications more energy efficient, and harnessing
+Added: renewable energy, but they are also looking inward, imagining ways we can enhance our impact on the communities where we live and work.
+Added: We strive to develop intelligent solutions that help to move the world toward a safer and more sustainable future.
+Added: We are guided by our signature ESG initiative to maximize the positive impact of our products.
We believe our ICs help address global challenges related to CO2 emissions, energy efficiency and clean, renewable energy in a variety of applications, for example:
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Our magnetic speed and position sensor ICs, motor driver ICs, and PMICs are used in advanced, high-efficiency vehicle transmissions.
−Removed: These ICs sense the position of gears and clutches, regulate power to the sensors and control electronics, and drive the actuators needed to operate high-efficiency 8 to 10 speed transmissions.
+Added: These ICs sense the position of gears and clutches, regulate power to the sensors and control electronics, and drive the actuators needed to operate high-efficiency eight to 10-speed transmissions.
• Energy efficiency in hybrid and fully electric vehicles.
−Removed: Our “lossless” magnetic current sensor ICs are used to accurately measure and control electric current flowing in xEV powertrains, improving the energy efficiency of the electric vehicle.
−Removed: In many electric cars, ten to twenty total current sensor ICs are used in vehicle inverter, DC/DC converter, and on-board-charging systems.
−Removed: In addition, our power IC products improve energy efficiency and motion control in mild hybrid cars, where our 100-volt wafer technology is ideal for use when driving 48-volt motors or powering electronics from the internal 48-volt battery.
+Added: Our “lossless” magnetic current sensor ICs are used to accurately measure and control electric current flowing in EV powertrains, improving the energy efficiency of the electric vehicle.
+Added: In many electric cars, 10 to 20 total current sensor ICs are used in vehicle inverter, DC/DC converter, and on-board-charging systems.
+Added: In addition, our power IC products improve energy efficiency and motion control in mild hybrid cars, where our 100V wafer technology is ideal for use when driving 48-volt motors or powering electronics from the internal 48-volt battery.
• Renewable and smart energy applications.
Our magnetic current sensor ICs with embedded high-voltage isolation are used extensively in power conversion and inverter applications in solar and wind energy generation.
−Removed: In addition, our angle sensor ICs and motor driver ICs play a key role in the mechatronic systems used to optimize the alignment
−Removed: between solar panels and the changing position of the sun, for example.
+Added: In addition, our angle sensor ICs and motor driver ICs play a key role in the mechatronic systems used to optimize the alignment between solar panels and the changing position of the sun, for example.
Our products also provide a non-intrusive, reliable, high-precision and low-cost way to measure power in power monitoring applications.
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We expect the transition from 12-volt to 48-volt power architectures in data center and 5G telecom markets will continue to require energy-efficient, high-voltage power and sensor IC solutions to achieve necessary levels of energy efficiency.
−Removed: We are committed to a values-based culture that places high importance on running our business in a sustainable and safe manner.
−Removed: We are a member of the Responsible Business Alliance, dedicated to social responsibility in the supply chain.
−Removed: We also actively manage the carbon footprint of our operations and intend to participate in the CDP (formerly the Carbon Disclosure Project) to disclose our carbon emissions for the relevant questionnaire periods.
+Added: The Company is a member of the Responsible Business Alliance (RBA), the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains.
+Added: The Company’s subcontractors and direct materials suppliers are required to be ISO 14001 and ISO 450001 certified (or comparable) and must complete and sign the Company’s supplier requirements.
+Added: The Company has also established an internal ESG Steering Committee that provides oversight of ESG risks and opportunities, guides the Company through our multi-year emissions reduction plan, and works to ensure suppliers comply with the Company’s commitment to global sustainability.
+Added: As part of the Company’s commitment to reduce the environmental impact of our products throughout the lifecycle, we are investing in innovation as well as measuring and tracking emissions, waste, and water usage across facilities.
+Added: The Company has implemented several energy, water, and waste reduction projects across our facilities and established an environmental policy, climate change policy, and water policy.
+Added: We are also taking steps to actively manage the carbon footprint of our operations (i.e., our Scope 1 and 2 emissions) and have participated in the CDP (formerly the Carbon Disclosure Project) questionnaires on climate change and water security since 2018.
We also strive to adhere to international standards and regulations regarding manufacturing and business procedures and product composition.
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We have a geographically diverse mix of sales.
−Removed: Our distribution relationship with Sanken in Japan fulfills demand for our products from major Japanese tier-one automotive and industrial manufacturers.
Our net sales made to distributors accounted for approximately 39.3%, 36.8% and 37.3% of our net sales in fiscal years 2023, 2022 and 2021, respectively, excluding our distribution relationship with Sanken in Japan, which represented approximately 16.5%, 19.4% and 17.7% of our net sales in fiscal years 2023, 2022 and 2021, respectively.
+Added: Sales to our largest, non-affiliated distributor accounted for 10.8%, 11.0%, and 11.4% of our net sales in fiscal years 2023, 2022 and 2021, respectively.
+Added: As of April 1, 2023, we have transitioned the distribution of our products in Japan from Sanken to third-party distributors and direct to end customers.
Our direct sales force and applications engineers provide our customers with specialized technical support.
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We sold to more than 10,000 end customers, directly and through distributors, during each of fiscal years 2023, 2022 and 2021.
−Removed: Approximately half of our net sales during each of fiscal years 2022, 2021 and 2020, respectively, were derived from sales to our top twenty customers.
+Added: Approximately half of our net sales during each of fiscal years 2023, 2022 and 2021 were derived from sales to our top 20 customers, which includes distributors.
We believe that no end customer, including those served through our distributors, exceeded 10% of our net sales during fiscal years 2023, 2022 and 2021.
Research and Development Strategy
−Removed: We are a technology company and believe that our future success depends on our ability to rapidly develop and introduce differentiated new products in our target markets.
−Removed: As a result, we are committed to investing in our process and product development capabilities and focusing our engineering efforts on designing and introducing new application-specific products, developing new semiconductor process technologies, enhancing design productivity and evaluating new technologies.
+Added: We are a technology company, and we believe our future success depends on our ability to rapidly develop and introduce differentiated new products in our target markets.
+Added: As a result, we are committed to investing in our process and product development capabilities and focusing our engineering efforts on designing and introducing new application-specific products, developing new semiconductor process and packaging technologies, enhancing design productivity and evaluating new technologies.
Our research and development investments are subject to a rigorous ROI review to ensure alignment with our growth and profitability targets.
We believe that by effectively applying these resources, we have developed proprietary innovations and intellectual property that will give us an early lead in our target markets and will enable accelerated growth over time.
−Removed: Over the last ten years, we believe we have been instrumental in achieving fundamental developments that have enabled a number of key technology transitions in the automotive and industrial markets.
−Removed: We believe we are one of very few suppliers in the semiconductor industry to integrate proprietary motor control algorithms into our motion control devices to achieve optimized BLDC motor performance, we remain one of the only suppliers that has developed multiple packaging technologies capable of operating up to 175 degrees Celsius and including passive components that simplify customer
−Removed: module assembly, and we were one of the first in our industry to develop automotive grade xMR technology on silicon wafers, which enabled breakthrough advances in product performance.
−Removed: This advanced technology is a key enabler across all of our strategic focus areas in the automotive and industrial markets as more of the automotive safety market transitions to xMR.
+Added: Over the last 10 years, we believe we have been instrumental in achieving fundamental developments that have enabled a number of key technology transitions in the automotive and industrial markets.
+Added: We believe we are one of very few suppliers in the semiconductor industry to integrate proprietary motor control algorithms into our motion control devices to achieve optimized BLDC motor performance, we remain one of the few suppliers that has developed multiple packaging technologies capable of operating up to 175 degrees Celsius and including passive components and high current conductors required to make high efficiency, high voltage current sensor products, and we were one of the first in our industry to develop automotive grade xMR technology on silicon wafers, which enabled breakthrough advances in product performance.
+Added: This advanced technology is a key enabler across all of our strategic focus areas in the automotive and industrial markets as more of the e-Mobility and clean energy markets transition to xMR.
We augment our internally generated intellectual property through a mix of licensed intellectual property, partnering with industry experts, and through acquisitions.
−Removed: For example, we acquired our photonics portfolio which provides us with advanced laser and photodetector technology.
+Added: For example, we acquired our IGD business through an acquisition in fiscal year 2022.
+Added: This acquisition will expand our serviceable available market in EV and clean energy.
Our global team of highly skilled engineers has extensive semiconductor development experience, including expertise in analog design, test and process technology.
−Removed: As of March 25, 2022, we had approximately 549 employees dedicated to research and development, with centers in the United States, Europe, South America, Japan and India.
+Added: As of March 31, 2023, we had approximately 655 employees dedicated to research and development, with centers in the United States, Europe, South America, and Asia.
Our engineering team has contributed to nearly doubling our intellectual property portfolio over the last three years, further strengthening our position in our target markets.
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Our focus on meeting or exceeding the stringent automotive market safety and reliability requirements is fundamental to our research and development process.
−Removed: We anticipate that we will continue to make research and development investments in order to enhance our leadership position and expand our markets with innovative, high-quality products and services (as exemplified through our acquisition of Voxtel).
−Removed: In addition, our board of directors has a standing R&D Committee, whose purpose is to provide guidance to management on various technological choices and research and development priorities to assist in implementing our strategic direction.
+Added: We anticipate that we will continue to make research and development investments in order to enhance our leadership position and expand our markets with innovative, high-quality products and services (as exemplified through our acquisition of Heyday).
+Added: In addition, our board of directors has a standing R&D and Strategy
+Added: Committee, whose purpose is to provide guidance to management on various technological choices and research and development priorities to assist in implementing our strategic direction.
Process and Packaging Technology
−Removed: Our product and technology development engineers have long-established expertise in designing analog power ICs, magnetic sensor ICs, and photonics components using proprietary semiconductor process technologies and intelligent packaging.
+Added: Our product and technology development engineers have long-established expertise in designing mixed signal power ICs and magnetic sensor ICs using proprietary semiconductor process technologies and intelligent packaging.
We consider these capabilities to be strategically important because they allow us to create complete system products and highly integrated solutions that meet the quality and robustness requirements of our most stringent automotive customers and applications.
These have the benefit of advancing the feature, function and cost of ownership of our devices relative to those of our competitors.
−Removed: For example, we released a unique 100V- and 175-degree Celsius capable BCD wafer technology designed to handle automotive voltage and temperature transients while also integrating high-density logic circuits and EEPROM memory to enable configurable and embedded algorithms, and various Hall-effect and xMR transducer technology on the same silicon wafer.
+Added: For example, we released a unique 100V- and 175-degree Celsius capable BCD wafer technology designed to handle automotive voltage and temperature transients while also integrating high-density logic circuits and electrically erasable programmable read-only memory to enable configurable and embedded algorithms, and various Hall-effect and xMR transducer technology on the same silicon wafer.
These technologies are fundamental to the transition from 12-volt to 48-volt power supply required in the rapidly emerging mild HEV and EV markets, and to the next generation of ADAS systems.
−Removed: We are in the process of applying these capabilities to the industrialization of our ultra-miniature lasers and advanced semiconductor photodiodes.
+Added: We are in the process of applying these capabilities to the industrialization of our IGD portfolio.
In choosing the process technology to be used to manufacture a new product, we seek to optimize the match between the process technology and the desired performance parameters of the product for our customers.
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Integrated Transducers
−Removed: One of our fundamental innovations is the integration of magnetic transducers and CMOS circuitry into one piece of silicon to create a complete, fully integrated system.
+Added: One of our fundamental innovations is the integration of magnetic transducers and complementary metal oxide semiconductor circuitry into one piece of silicon to create a complete, fully integrated system.
Hall-effect elements are implanted in silicon providing robust and low noise solutions that are optimized for stress and temperature effects.
Thin film, high-resolution xMR transducers are deposited directly on top of the CMOS circuitry creating a more reliable solution than multi-chip solutions by reducing interconnects and solution area.
−Removed: To achieve the highest level of Automotive Safety Integrity Level (“ASIL”), we are able to
−Removed: integrate xMR and Hall-effect transducers onto the same silicon to produce heterogeneous solutions capable of performing reliably in the most demanding automotive environments.
+Added: To achieve the highest level of Automotive Safety Integrity Level (“ASIL”), we are able to integrate xMR and Hall-effect transducers onto the same silicon to produce heterogeneous solutions capable of performing reliably in the most demanding automotive environments.
High-Voltage Technology
1 unchanged sentence
For example, our innovative wafer technology enables high-voltage power transistors to be combined with embedded digital logic and precision analog circuits on a monolithic motor control IC.
−Removed: This enables a number of application-specific advancements, including taking the complex algorithm development in motor drives into the IC, vastly reducing our customers’ design complexity and creating the most efficient and quietest solutions in the market.
+Added: This enables a number of application-specific advancements, including taking the complex algorithm development in motor drivers into the IC, vastly reducing our customers’ design complexity and creating the most efficient and quietest solutions in the market.
Similar benefits exist for our sensor products through monolithic integration of transducers with precision analog circuits and intelligent signal processing on a high-voltage IC that can be powered from a 12-volt vehicle battery.
1 unchanged sentence
We continue to combine circuit design and process innovation with novel packaging solutions that improve performance and reliability while reducing solution footprint and our customers’ cost of ownership.
−Removed: Two decades of sensor package innovation have led to the development of a family of integrated systems in a package (“SiP”) for magnetic speed and current sensor ICs as well as power systems.
−Removed: By integrating the magnet and passive components in a single body, we are able to offer inventive magnetic sensors that reduce our customers’ needs to design complex magnetic models and solve electrical interference issues with external printed circuit boards (“PCBs”) or custom lead frames.
−Removed: The current sensors integrate specially designed lead frames to allow a high-precision, factory programmed single package solution that provides a unique low loss and high-voltage isolation product and can sense current for products plugged directly into a household electrical outlet.
−Removed: Years of design and manufacturing refinement have led to the latest generation of power products that integrate passive components and power delivery into small packages to reduce PCB footprint and reduce noise in high-power systems.
+Added: Two decades of sensor package innovation have led to the development of a family of integrated systems in a package for magnetic current, position and speed sensor ICs as well as power systems.
+Added: By integrating a combination of a magnet, magnetic core, passive components, and our silicon integrated circuit in a single body, we are able to offer inventive magnetic sensors that reduce our customers’ needs to design complex magnetic models or complex interface circuits, solve electrical interference issues with external PCBs, and enable smaller and more cost-effective customer systems.
+Added: The current sensors integrate specially designed lead frames to allow a high-precision, factory programmed single package solution that provides a unique high-efficiency and high-voltage isolation product and can sense current for products plugged directly into a household electrical outlet or connected to an 800-volt automotive battery.
+Added: Years of design and manufacturing refinement have led to the latest
+Added: generation of power products that integrate passive components and power delivery into small packages to reduce PCB footprint and reduce noise in high-power systems.
We also believe we are one of only a few companies in our industry that have developed a broad portfolio of packages that are suitable for operation in automotive environments and 175-degree Celsius temperatures.
−Removed: Our ultra-miniature laser modules combine advanced laser diodes and optics in a small form factor that outputs up to 3 millijoules of laser power for flash LiDAR systems.
Intellectual Property
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We either hold or have applied for trademarks in all jurisdictions where we do significant business.
−Removed: The PSL Divestiture
−Removed: Through the end of fisc al year 2020, we held a 100% ownership interest in PSL, a semiconductor wafer fabricator engaged in the manufacturing and testing of foundry wafers.
−Removed: Prior to the divestiture transaction of PSL, PSL accounted for 11.1% of our net sales and supplied 44.2% of our wafer requirements, respectively, in fiscal year 2020.
−Removed: In addition, through end of fiscal year 2020, we acted as a distributor of Sanken products in North America, South America and Europe on a low margin, buy-resale basis pursuant to the Sanken Products Distribution Agreement between AML, our wholly owned subsidiary, and Sanken.
−Removed: Our net sales from the distribution of Sanken products in fiscal year 2020 were $35.4 million .
−Removed: On March 28, 2020, in order to further our strategy for developing a flexible and efficient manufacturing model that minimizes capital requirements, lowers operating costs, enhances reliability of supply and supports our growth going forward:
−Removed: • We divested a majority of our ownership interest in PSL to Sanken in the PSL Divestiture, in connection with which:
−Removed: • Our equity interests in PSL were recapitalized (the “Recapitalization”) in exchange for (i) the contribution by us to PSL of $15.0 million of intercompany debt, representing a portion of the aggregate principal amount of debt owed by PSL to us under certain intercompany loan agreements (the “Existing Allegro Loans”), (ii) the assumption by us of $42.7 million in aggregate principal amount of debt owed by PSL to
−Removed: Sanken under certain intercompany loan and line-of-credit agreements (the “PSL-Sanken Loans”), that was subsequently forgiven in exchange for our transfer to Sanken of 70% of the issued and outstanding equity interests in PSL, and (iii) the termination of the Existing Allegro Loans and the issuance, pursuant to a consolidated and restructured loan agreement (the “Consolidated Loan Agreement”), of a note payable to us in an aggregate principal amount of $51.4 million (representing the aggregate principal amount of debt outstanding under the Existing Allegro Loans prior to their termination);
−Removed: • In exchange for the extinguishment of all outstanding indebtedness owed by u s to Sanken under the PSL-Sanken Loans, we (i) divested 70% of the issued and outstanding equity interests in PSL to Sanken, as a result of which Sanken holds a 70% majority share in PSL and we hold a 30% interest, and (ii) amended and restated the existing limited liability company agreement of PSL to admit Sanken as a member, reflect the Recapitalization and otherwise reflect the rights and obligations of us and Sanken thereunder;
−Removed: • AML entered into an amendment to a wafer foundry agreement, dated as of April 12, 2013, between AML and PSL (as amended, the “Wafer Foundry Agreement”), pursuant to which AML agreed, among other things, to a minimum wafer purchase obligation by us from PSL during the initial three-year term of the Wafer Foundry Agreement;
−Removed: • AML entered into a letter agreement with PSL pursuant to which AML agreed, among other things, to make a one-time price support payment to PSL of approximately $5.9 million in cash or, at AML’s option, as a reduction of PSL’s existing debt obligations under the Consolidated Loan Agreement (such letter agreement, the “Price Support Agreement”);
−Removed: • AML entered into a letter agreement with Sanken providing for, among other things, the termination of AML’s services under the Sanken Products Distribution Agreement (such letter agreement, the “Sanken Products Distribution Termination Letter”);
−Removed: • Sanken and PSL entered into a new distribution agreement providing for, among other things, PSL to serve as a distributor of Sanken products in North America, South America and Europe;
−Removed: • We entered into a transition services agreement with PSL and Sanken pursuant to which we agreed, among other things, to provide certain human resources, legal and distribution support services to PSL during the initial transition period following the consummation of the PSL Divestiture on the terms set forth therein (such agreement, the “TSA”);
−Removed: • We entered into an amended and restated transfer pricing agreement with AML, Sanken and PSL pursuant to which, among other things, we are no longer required to make payments to PSL in respect of transfer pricing adjustments;
−Removed: • We entered into certain other agreements with Sanken and PSL.
−Removed: Acquisition of Voxtel
−Removed: On August 28, 2020, we acquired Voxtel, a privately-held technology company located in Beaverton, Oregon that specializes in components for eye-safe LiDAR used in ADAS, fully autonomous vehicles, and industrial automation.
−Removed: The total purchase price of the acquisition was $26.1 million, excluding certain earn outs that have a potential payout of $15.0 million.
−Removed: As of March 25, 2022, the fair value of these earn-outs was $2.8 million.
−Removed: In addition to the laser technology, Voxtel’s capabilities included its Indium Gallium Arsenide (“InGaAs”) APDs and APD photoreceivers—highly sensitive in the important eye-safe region around 1550 nanometers (“nm”).
−Removed: This technology enables images to be obtained over a wide range of weather conditions and over a long-distance or a wide field of view using a laser that doesn’t pose an ocular hazard.
−Removed: The combination of these highly-sensitive detectors and high-peak-power eye-safe lasers, combined with Voxtel’s custom integrated circuits and electro-optical packaging expertise, allows for cost-effective, compact laser-ranging and 3D-image sensing.
−Removed: As of the acquisition, Voxtel held more than 38 US patents, representing a comprehensive laser detection and ranging (“LADAR”)/LiDAR photonic technology suite.
The semiconductor industry, particularly the market for high-performance analog mixed-signal semiconductors, is highly competitive.
Although no one company competes with us across all of our product lines, we face significant competition within each of our business areas from both domestic and international semiconductor companies.
−Removed: Our primary magnetic sensor and power IC competitors are other semiconductor design and manufacturers, such as Analog Devices, Infineon, Maxim Integrated, Melexis, Monolithic Power Systems, TDK Micronas, and Texas Instruments.
+Added: Our primary magnetic sensor and power IC competitors are other semiconductor design and manufacturers, such as Analog Devices, Infineon, Melexis, Monolithic Power Systems, TDK Micronas, and Texas Instruments.
Our ability to compete successfully against these companies depends on elements both within and outside of our control.
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Our business exhibits some seasonality.
−Removed: Historically, our revenue has generally been higher in the second half of the year than in the first half.
+Added: Historically, our net sales have generally been higher in the second half of the fiscal year than in the first half.
However, various factors, such as market conditions, new product introductions and the supply chain environment, can impact the effects of seasonality on our business.
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As of March 31, 2023, we emplo yed 4,687 full-time employees, including 655 in research and development, 3,578 in manufacturing (the overwhelming majority located at our AMPI Facility in the Philippines), 221 in sales and marketing and 233 in general and administrative.
−Removed: We consider our relationship with our employees to be good.
−Removed: We have never experienced a labor-related work stoppage.
+Added: We consider our relationship with our employees to be good, as we have never experienced a labor-related work stoppage.
None of our employees are either represented by a labor union or subject to a collective bargaining agreement.
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Competitive Pay and Benefits .
−Removed: Allegro’s compensation programs are designed to align the compensation of our employees, who operate in a highly competitive and technologically challenging environment, with Allegro’s business performance and
−Removed: to provide the proper incentives to attract, retain and motivate employees to achieve superior performance.
+Added: Allegro’s compensation programs are designed to align the compensation of our employees, who operate in a highly competitive and technologically challenging environment, with Allegro’s business performance and to provide the proper incentives to attract, retain and motivate employees to achieve superior performance.
The structure of our compensation programs balances incentive earnings for both short-term and long-term performance.
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• We provide employee wages that are competitive and consistent with employees’ positions, skill levels, experience, knowledge and geographic location.
−Removed: • All employees participate in our annual cash bonus program, allowing them to share in the profitability and business performance of Allegro.
−Removed: We also generally provide equity grants and an employee stock purchase plan to salaried employees consistent with geographic compensation practices and subject to regulatory compliance.
+Added: • All non-sales employees participate in one of our annual cash incentive programs, allowing them to share in the profitability and business performance of Allegro.
+Added: We also generally provide equity grants globally and an employee stock purchase plan to salaried employees consistent with geographic compensation practices and subject to regulatory compliance.
+Added: In the U.S., we offer an employee stock purchase plan to our non-executive employees, which allows them to purchase shares of Allegro stock at a discounted price.
These programs each further align our employees’ financial interests with the performance of the business and the interests of our stockholders.
−Removed: • We generally provide annual compensation increases and incentive compensation based on merit.
−Removed: • We purchase compensation data from a compensation and benefits consulting firm to allow us to ensure we provide competitive compensation in each of the geographic locations in which we operate.
−Removed: • We align our executives’ annual and long-term equity compensation with our stockholders’ interests by linking realizable pay with stock performance and operating metrics.
−Removed: • We provide comprehensive benefit options designed to retain our employees and support their families in living healthier and more secure lives.
+Added: • We generally provide annual compensation increases and incentive awards based on business and individual performance.
+Added: • All customer-facing positions participate in our annual sales incentive plan, allowing them to earn additional cash incentives based on the achievement of specific sales metrics.
+Added: • We purchase compensation data from external compensation and benefits consulting firms to allow us to ensure we provide competitive compensation in each of the geographic locations in which we operate.
+Added: • We align our executives’ annual and long-term equity compensation with our stockholders’ interests by linking realizable pay with Allegro’s stock performance and other key business and financial operating metrics.
+Added: • We provide comprehensive benefit options designed to retain our employees and support their families in all areas of health and wellness.
Employee recruitment, retention and development.
Allegro works diligently to attract the best talent from a broad array of sources to meet the current and future demands of our business.
−Removed: We have established relationships with trade schools, world-class universities, professional associations and industry groups to proactively attract talented and capable new hires.
+Added: We have established relationships with world-class colleges and universities, professional associations and industry groups to proactively attract talented and capable new hires.
We also utilize social media, local job fairs and educational organizations to find diverse, motivated and responsible employees.
−Removed: We believe we have made strides to increase diversity in management positions, building internal resources for potential future leadership openings.
−Removed: Allegro has a strong employee value proposition that leverages our technology leadership, collaborative working environment, shared sense of purpose and culture, and desire to do the right thing to attract talent to our company.
+Added: We believe we have made strides to increase diversity in management positions, while building internal resources to support future leadership openings.
+Added: Allegro has a strong employee value proposition that leverages our technology leadership, collaborative working environment, shared sense of purpose and culture, and the desire to do the right thing to attract talent to our Company.
In fiscal 2023, we hired approximately 1,103 new employees.
−Removed: We monitor employee turnover rates, as our success depends upon retaining and investing in our highly trained manufacturing and technical staff.
+Added: We closely monitor employee turnover rates, as our success depends upon retaining and investing in our highly trained manufacturing and technical staff.
Allegro strives to decrease voluntary turnover rates and thereby increase employee tenure by ensuring a combination of competitive compensation, individual developmental opportunities and personal career enrichment and growth.
+Added: We strive to provide an inclusive culture where employees can come to work and achieve their personal best.
+Added: We provide a Flex@Allegro program to allow our employees the opportunity to decide where and how work gets accomplished.
+Added: This flexible work arrangement enables our employees to achieve better work and life balance, and helps us to attract and retain talent.
We believe our retention at the technical, professional and managerial levels is high.
−Removed: In fiscal 2021, amidst global uncertainty and turmoil resulting from the COVID-19 pandemic, we introduced a number of special initiatives to minimize the impact on our employees and to safeguard their health and safety.
−Removed: These initiatives included compensation programs designed to provide a source of income to employees who needed to be absent from work as a result of the pandemic and enhanced “appreciation pay” to recognize the significant contributions of hourly employees who continued to work on-site.
−Removed: Throughout the crisis, we believe our employees took immense pride in the shared purpose of making products that supported the world’s critical supply chains within a wide range of essential businesses and services.
+Added: Diversity, Equity and Inclusion .
+Added: We are committed to cultivating a diverse workforce composed of individuals with different backgrounds, passions, and skillsets, as we work together to innovate with purpose.
+Added: We understand that a holistic commitment to diversity necessitates more than recruiting diverse talent – it requires the cultivation of a workforce that is safe, creative, and collaborative, and where there are equitable opportunities for every employee.
+Added: We established a DEI Council that globally represents our workforce and helps guide our DEI efforts and expand our DEI roadmap.
+Added: We established two new employee resource groups (ERGs), Early Career and Women@Allegro.
+Added: We have organizational metrics to monitor senior leadership, management, hiring and technical hiring by gender globally.
+Added: We measure our population and hiring by race and ethnicity in the U.S.
Information about our Executive Officers.
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Name Age Position with the Company
−Removed: Ravi Vig 61 President and Chief Executive Officer, Director (1)
+Added: Vineet Nargolwala 50 President and Chief Executive Officer, Director
51 Senior Vice President, Chief Financial Officer and Treasurer
49 Senior Vice President, General Counsel and Secretary
−Removed: 46 Senior Vice President of Technology and Products
+Added: 47 Senior Vice President, Chief Technology Officer
41 Senior Vice President of Worldwide Sales
−Removed: 62 Senior Vice President of Operations and Quality
−Removed: Joanne Valente 57 Senior Vice President and Chief Human Resources Officer
−Removed: (1) As previously disclosed, Mr.
−Removed: Vig is retiring from his position as President and Chief Executive Officer, effective on June 13, 2022.
−Removed: Vineet Nargolwala has been appointed to serve as President and Chief Executive Officer of the Company, effective June 13, 2022.
−Removed: Ravi Vig has served as our Chief Executive Officer and as a member of our board of directors since 2016.
−Removed: Vig joined Allegro in 1984 as an Analog Design Engineer and then as a Design Manager.
−Removed: Vig helped to launch the
−Removed: Company’s magnetic sensor IC business.
−Removed: Vig later spearheaded the marketing effort for these innovative products, where he became the Vice President of our Sensors Business Unit.
−Removed: Vig has also served as the Senior Vice President of Business Development, responsible for our sensor and power IC businesses.
−Removed: Prior to being named President and Chief Executive Officer in 2016, Mr.
−Removed: Vig served as our Chief Operating Officer.
−Removed: Vig holds over 50 U.S.
−Removed: patents in the areas of sensors and semiconductors.
−Removed: Vig serves as a Trustee for the Committee for Economic Development, a nonprofit, nonpartisan, business-led public policy organization.
−Removed: Vig received a B.S.
−Removed: in Electrical Engineering from Rutgers University in 1982 and an M.S.
−Removed: in Engineering from Dartmouth College in 1984.
−Removed: Vig received an M.B.A.
−Removed: from Southern New Hampshire University in 1991 and completed the Global Executive Leadership Program at Yale University in 2017.
+Added: Suman Narayan 51 Senior Vice President, Products
+Added: Valente 58 Senior Vice President and Chief Human Resources Officer
+Added: Vineet Nargolwala has served as our President and Chief Executive Officer and as a member of our board of directors since he joined Allegro in June 2022.
+Added: Nargolwala is a technology executive with over 25 years of global executive leadership experience.
+Added: Prior to joining Allegro, Mr.
+Added: Nargolwala previously served as Executive Vice President of Sensing Solutions at Sensata Technologies, a leading industrial technology company that develops sensors and sensor-based solutions for the automotive, heavy vehicle and off-road, industrial, and aerospace industries, from March 2020 to May 2022.
+Added: Nargolwala joined Sensata as Vice President, Sensors Americas in February 2013 and was later promoted to Senior Vice President, Performance Sensing, North America, Japan and Korea in April 2016.
+Added: In February 2019, he was appointed Senior Vice President, General Manager, Global Safety & Mobility, and in September 2019, he was appointed Senior Vice President, Sensing Solutions.
+Added: Prior to Sensata, he was with Honeywell International Inc.
+Added: for over nine years in business strategy and P&L leadership roles of increasing responsibility.
+Added: Prior to Honeywell, Mr.
+Added: Nargolwala was at Nortel Networks in product management and engineering roles.
+Added: Nargolwala holds a Bachelor’s degree in Electrical Engineering from Maharaja Sayajirao University in Baroda, India, a Master’s degree in Electrical Engineering from the University of Texas and a Master of Business Administration from Cornell University.
D’Antilio has served as our Senior Vice President, Chief Financial Officer and Treasurer since he joined Allegro in January 2022.
Prior to joining Allegro, Mr.
−Removed: D’Antilio most recently served as the Chief Financial Officer of a Summit Partners Portfolio Company and helped lead the recent sale and recapitalization of the company.
+Added: D’Antilio served as the Chief Financial Officer of a Summit Partners Portfolio Company and helped lead the sale and recapitalization of the company.
From February 2019 to March 2021, he served as the Chief Financial Officer of IDEX Biometrics, a publicly traded and global fabless semiconductor company, where he played an instrumental role in leading a Nasdaq listing and preparing the company to scale its production.
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Earlier in his career, Mr.
−Removed: D’Antilio was a CPA in public accounting and served as an audit manager at PwC.
+Added: D’Antilio was a CPA in public accounting and served as an audit manager at PricewaterhouseCoopers LLP.
D’Antilio holds a B.S.B.A.
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from Boston University School of Law in 1998.
−Removed: Doogue has served as our Senior Vice President of Technology and Products since 2019.
+Added: Doogue has served as our Senior Vice President, Chief Technology Officer, since being named as the Company’s first Chief Technology Officer in September 2022 .
Doogue joined Allegro in 1998 as a Design Engineer facilitating the development of Allegro’s innovative speed and current sensor ICs.
−Removed: Doogue has also served in various leadership positions at Allegro, including as Design Manager from 2002 to 2006, Director of Strategic Marketing from 2006 to 2011, Business Unit Director of Linear Current Sensors from 2011 to 2016 and as Vice President of Advanced Sensor Technologies from 2016 to 2019.
+Added: Doogue has also served in various
+Added: leadership positions at Allegro, including as Design Manager from 2002 to 2006, Director of Strategic Marketing from 2006 to 2011, Business Unit Director of Linear Current Sensors from 2011 to 2016, Vice President of Advanced Sensor Technologies from 2016 to 2019, and as Senior Vice President of Technology and Products since from 2019 to 2022.
Doogue holds over 75 U.S.
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in Electrical Engineering from the University of Cincinnati in 2004.
−Removed: has served as our Senior Vice President of Operations and Quality since 2017.
−Removed: Teebagy joined Allegro in 2005 and served as a Senior Director of Manufacturing Technology from January 2005 to May 2014.
−Removed: Teebagy also served as a Vice President of Manufacturing Technology from May 2014 to July 2016 and as a Vice President of Operations from July 2016 to June 2017.
−Removed: Prior to joining Allegro, Mr.
−Removed: Teebagy was employed by International Rectifier, a semiconductor manufacturing company (which was later acquired by Infineon Technologies AG), where he served as Vice President of Operations of the company’s headquarters of their Government and Space Division from 2002 to 2005.
−Removed: Teebagy received a B.S.
−Removed: in Industrial Engineering from the University of Massachusetts-Lowell in 1981 and an M.B.A.
−Removed: in Business Administration from Babson College in 1982.
−Removed: Joanne Valente has served as our Senior Vice President and Chief Human Resources Officer (“CHRO”) since May 17, 2022.
+Added: Suman Narayan was appointed Senior Vice President, Products, in September 2022.
+Added: Prior to that, he served as Vice President, Sensor Business Unit, since joining the Company in January of 2021.
+Added: Before joining Allegro, Mr.
+Added: Narayan was Senior Vice President and General Manager, Semiconductor and Embedded Systems, for Cyient, Inc., a global engineering, manufacturing, and digital technology solutions company, from 2016 to 2021.
+Added: Prior to that, he served as Vice President and General Manager, High-Performance Smart Power, for ON Semiconductor Corporation from 2014 to 2016 and held roles of increasing seniority with Texas Instruments Inc.
+Added: from 1995 to 2014.
+Added: Narayan holds an M.B.A., from The University of Texas, an M.S.
+Added: in Electrical Engineering and Biomedical Engineering, from Iowa State University, and a B.S., Electrical, Electronics and Communications Engineering from PSG College of Technology, in Coimbatore, Tamil Nadu, India.
+Added: Valente has served as our Senior Vice President and Chief Human Resources Officer (“CHRO”) since May 2022.
Prior to her promotion, Ms.
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Prior to Allegro, Ms.
−Removed: Valente worked at Analog Devices, serving in a variety of global Human Resources Director roles across Sales, Marketing, Engineering and Talent Acquisition.
+Added: Valente worked at Analog Devices, serving in a variety of global Human Resources Director roles across Sales, Marketing, Engineering and Talent Acquisition from 2007 to 2018.
Additionally, Ms.
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Environmental and Occupational Health and Safety Regulation
+Added: We are committed to protecting the environment and the health and safety of our employees, customers, and communities.
+Added: Our Environmental Health and Safety (EHS) Policy outlines policies and training programs that are designed to promote and protect employee safety.
+Added: Our EHS teams oversee workplace conditions for our employees.
+Added: All Allegro EHS policies and procedures are developed in accordance with applicable laws and regulations.
+Added: Our AMPI Facility is certified to ISO 45001 for environmental management and ISO 45001 for occupational health and safety.
Our operations are subject to various federal, state, local, international and non-U.S.
−Removed: laws and regulations governing pollution and environmental protection, including those relating to the release, storage, use, discharge, handling, generation, transportation, disposal, and labeling of, and human exposure to, hazardous and toxic materials, product composition and the investigation and cleanup of contaminated sites, including sites we currently or formerly owned or operated, due to the release of hazardous materials, regardless of whether we caused such release.
+Added: laws and regulations governing pollution and environmental protection, including those relating to hazardous and toxic materials, product composition and the investigation and cleanup of contaminated sites, including sites we currently or formerly owned or operated, due to the release of hazardous materials, regardless of whether we caused such release.
In addition, we may be strictly liable for joint and several costs associated with investigation and remediation of sites at which we have arranged for the disposal of hazardous wastes if such sites become contaminated, even if we fully comply with applicable environmental laws and regulations.
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For example, the European Union (“EU”) adopted its Restriction of Hazardous Substance Directive (“RoHS”) in 2003 and continues to develop evolving compliance standards, with its most recent restrictions announced as part of RoHS 3, which took effect in July 2019.
−Removed: The EU also adopted the European Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (“REACH”) in 2007, which calls for the progressive substitution of dangerous chemicals in manufacturing.
−Removed: In 2006, China first published its RoHS, the Administrative Measures on the Control of Pollution Cause by Electronic Information Products.
−Removed: This regulation was revised in 2016 when China enacted the Administrative Measures on the Restrictions of the Use of Certain Hazardous Substances in Electrical and Electronic Products Regulations, which expanded the scope of the 2006 RoHS and is designed to restrict additional hazardous substance in certain electrical and electronic products.
+Added: The EU also adopted the European Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals in 2007,
+Added: which calls for the progressive substitution of dangerous chemicals in manufacturing.
+Added: In 2006, China first published its RoHS equivalent, the Administrative Measures on the Control of Pollution Cause by Electronic Information Products.
+Added: This regulation was revised in 2016 when China enacted the Administrative Measures on the Restrictions of the Use of Certain Hazardous Substances in Electrical and Electronic Products Regulations, which expanded the scope of the 2006 requirements and is designed to restrict additional hazardous substance in certain electrical and electronic products.
In addition, any business selling products to consumers in California containing certain listed chemicals or substances is subject to California Proposition 65 (officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986), which requires disclosure of the listed chemical and potential health risks.
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Available Information
−Removed: We file annual, quarterly and current reports and any amendments to those reports, proxy statements and other information with the SEC.
+Added: We file annual, quarterly and current reports and any amendments to those reports, proxy statements and other information with the Securities and Exchange Commission (“SEC”).
Documents we file with the SEC are available free of charge on our website at https://investors.allegromicro.com/financials/sec-filings , as soon as reasonably practicable after such material is filed with the SEC.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.