What changed in this filing

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Item 1. Business

2026-02-27 compared with 2025-03-03 · 76 added, 73 removed, 155 unchanged (49% of the section changed)

Monolithic Power Systems, Inc.

(“MPS,” “we,” or “us”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions.

is a fabless global company that provides high-performance, semiconductor-based power electronics solutions.

Incorporated in 1997, our three core strengths include deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging.

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Our mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future.

We believe that we differentiate ourselves by offering solutions that are more highly integrated, smaller in size, more energy-efficient, more accurate with respect to performance specifications and, consequently, more cost-effective than many competing solutions.

We plan to continue to introduce new products within our existing product families, as well as in new innovative product categories.

Our principal executive office is located in Kirkland, Washington.

We believe that we differentiate ourselves by offering solutions that are more highly integrated, smaller in size, more energy-efficient, more accurate and more reliable with respect to performance specifications and, consequently, more cost-effective than many competing solutions.

We plan to continue to introduce new products within our existing product families, as well as new, innovative products that expand our market.

We have over 4,500 employees worldwide, with various locations in Asia, Europe and the U.S.

Industry Overview

Industry and Product Overview

Semiconductors comprise the basic building blocks of electronic systems and equipment.

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Mixed-signal ICs combine digital and analog functions onto a single chip and play an important role in bridging real world applications to digital systems.

We focus on the market for high performance analog and mixed-signal ICs.

High performance products generally are differentiated by functionality and performance factors, which include integration of higher levels of functionality onto a single chip, greater precision, better power efficiency and density, higher speed and lower heat and noise.

We focus on the market for high performance analog and mixed-signal solutions.

High performance products generally are differentiated by functionality and performance factors, which include integration of higher levels of functionality into a single chip or module, greater precision, better power efficiency and density, higher speed, and lower heat and noise.

There are several key factors that distinguish the analog and mixed-signal IC markets from digital IC markets.

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End Markets and Applications

We design and develop our products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets.

Enterprise data was our largest end market in 2024.

The following table is a summary of the various key end market applications for our products, and those markets’ contribution as a percentage of our total revenue:

We design and develop our products for the storage and computing, enterprise data, automotive, communications, consumer, and industrial end markets.

Storage and computing was our largest end market in 2025, closely followed by enterprise data.

The following table is a summary of the various key end market applications for our products, and those markets’ contribution as a percentage of our total revenue for the periods presented:

Percentage of Total Revenue

Enterprise Data

Cloud-based and on-premises CPU server and workstation applications, and server artificial intelligence (“AI”) applications

Storage and Computing

Storage applications, notebooks, and graphics cards

Memory, storage solutions, notebooks, and graphics cards

Enterprise Data

Cloud-based and on-premises CPU servers and workstations, and artificial intelligence (“AI”) systems

Advanced driver assistance systems, infotainment, USB connectors, body electronics, motion control, and lighting systems

Communications

Network infrastructure, satellite communications, optical modules, and other wireless applications

Network infrastructure, satellite communications, optical modules, switches, and other wireless solutions

Home appliances, gaming, smart TVs, lighting, monitors, and stereos

Power sources, industrial meter, security applications, and other industrial equipment

Power sources, industrial meters, security, and other industrial equipment

Product Families

Our proprietary process and packaging technologies enable us to design and deliver smaller, single-chip power management ICs.

These technologies simplify the design process and are applicable across a wide range of analog applications within the storage and computing, enterprise data, automotive, industrial, communications and consumer end markets.

Our key product families include, but not limited to, the Direct Current (“DC”) to DC, Alternating Current (“AC”) to DC, driver metal-oxide-semiconductor field-effect transistor, power management IC, current limit switch and lighting control products.

Our proprietary process and packaging technologies enable us to design and deliver smaller, single-chip power management solutions.

These technologies simplify the design process and are applicable across a wide range of analog applications within the storage and computing, enterprise data, automotive, communications, consumer, and industrial end markets.

Our key product families include, but are not limited to, the Direct Current (“DC”) to DC, Alternating Current (“AC”) to DC, driver metal-oxide-semiconductor field-effect transistor, power management IC, current limit switch and lighting control products.

Our product families are differentiated from those of our competitors with respect to their high degree of integration and strong levels of accuracy, power efficiency, quality and longevity, making them cost-effective and more sustainable relative to many competing solutions.

For example, DC to DC ICs are used to convert and control voltages within a broad range of electronic systems, such as cloud-based and on-premises CPU servers and workstation applications, server AI applications, storage applications, notebooks, infotainment, power sources, home appliances, network infrastructure and satellite communications applications.

For example, DC to DC solutions are used to convert and control voltages within a broad range of electronic systems, such as cloud-based and on-premises CPU servers and workstations, AI systems, memory, storage solutions, notebooks, infotainment, power sources, home appliances, network infrastructure and satellite communications.

We believe our DC to DC products are differentiated in the market, particularly with respect to their high degree of integration, high voltage operation, high load current, high switching speed, small footprint, and high energy efficiency.

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We maintain a staff of applications engineers who work directly with our customers’ engineers in the development of their systems’ electronics containing our products.

Once we secure our product positioning through our technical sales and applications engineers’ efforts, we then sell our products through third-party distributors and value-added resellers.

In addition, we sell directly to certain original equipment manufacturers (“OEMs”), original design manufacturers (“ODMs”) and end customers.

Our third-party distributors are subject to distribution agreements with us, which allow the distributors to sell our products to end customers and other resellers, including OEMs and ODMs.

Our value-added resellers may second source other products and provide other services to customers.

ODMs typically design and manufacture electronic products on behalf of OEMs.

In 2024, our two largest distributors accounted for 31% and 20% of our total revenue.

In 2023, our three largest distributors accounted for 26%, 19% and 10% of our total revenue.

In 2022, our two largest distributors accounted for 24% and 19% of our total revenue.

Once we secure our product positioning through our technical sales and applications engineering efforts, we then sell our products to end customers primarily through third-party distributors and value-added resellers.

Our third-party distributors are subject to distribution agreements with us, which allow the distributors to sell our products to end customers and other resellers.

Our resellers may second source other products and provide other services to customers.

In 2025, three distributors accounted for 26%, 18% and 10% of our total revenue.

In 2024, two distributors accounted for 31% and 20% of our total revenue.

In 2023, three distributors accounted for 26%, 19% and 10% of our total revenue.

No other direct customers accounted for more than 10% of our full-year, total revenue in any of the periods presented.

Our revenue from indirect sales to one customer, which primarily comprised power management solutions for AI applications, was 17% of our total revenue in 2024.

Our revenue from indirect sales to this customer was below 10% in both 2023 and 2022.

Current distribution agreements with several of our major distributors provide that each distributor has the non-exclusive right to sell and shall use its best efforts to promote and develop our products in various markets.

Current distribution agreements with several of our major distributors provide that each of them has the non-exclusive right to sell and shall use its best efforts to promote and develop our products in various markets.

These agreements provide that payment for purchases from us will generally occur within 30 to 90 days from the date of invoice.

In addition, we allow for limited stock rotation in certain agreements.

Because our sales are primarily billed and payable in U.S.

dollars, our sales are generally not subject to fluctuating currency exchange rates.

However, because a majority of our revenue is attributable to sales to customers in Asia, changes in the relative value of the dollar may create pricing pressures for our products.

In 2024, 2023 and 2022, our revenue from sales to customers in Asia was 94%, 87% and 86%, respectively.

Because our worldwide sales are primarily billed and payable in U.S.

dollars, the reporting of our sales is not subject to fluctuating currency exchange rates.

However, because a majority of our revenue is attributable to sales to customers in Asia, increases in the relative value of the dollar may create pricing pressures for our products.

Our revenue from sales to customers in Asia was 92%, 94% and 87% of our total revenue for the years ended December 31, 2025, 2024 and 2023, respectively.

Our sales are made primarily pursuant to standard individual purchase orders.

Our backlog consists of orders that we have received from customers which have not yet shipped.

Because orders in backlog are subject to cancellation or postponement, and backlog at any particular date is not necessarily representative of actual sales for any succeeding period, we believe that our backlog is not necessarily a reliable indicator of future revenue.

Our backlog consists of orders that we have received from customers that have not yet shipped.

Because orders in backlog may be subject to cancellation or postponement, and backlog at any particular date is not necessarily representative of actual sales for any succeeding period, we believe that our backlog may not necessarily be a reliable indicator of future revenue.

Typical supply chain lead times for orders are generally 16 to 26 weeks.

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This subjects us to certain risks, most notably the possibility that sales will not meet our forecast, which could lead to inventories in excess of demand.

If excess inventory exists, it may be necessary for us to sell it at a substantial discount, take a significant write-down or dispose of it altogether, all of which would negatively affect our profit margins.

If excess inventory exists, it may be necessary for us to sell it at a substantial discount, take a significant write-down or dispose of it altogether, any of which would negatively affect our profit margins.

In addition, in response to market conditions, we may slow the rate of manufacturing our products, which could result in insufficient inventory levels and reduced sales if we underestimate the demand for our products.

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Our research and development efforts are generally targeted at three areas:

systems architecture, circuit design and implementation, and process technologies.

systems architecture, circuit design and implementation, and process and packaging technologies.

In the area of systems architecture, we are exploring new ways of solving our customers’ system design challenges and are investing in the development of systems expertise in new markets and applications that align well with our core capabilities.

In the area of circuit design and implementation, our initiatives include expanding our portfolio of products and adding new features to our products.

In the area of process technologies, we are investing in research and development resources to provide leading-edge analog power processes for our next generation of ICs.

In the area of process and packaging technologies, we are investing in research and development resources to provide leading-edge analog power processes for our next generation of ICs, as well as innovative packaging technologies for integrated solutions.

We believe process technologies are key strategic components to our future growth.

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Manufacturing

We utilize a fabless business model, working with third parties to manufacture and assemble our ICs.

We utilize a fabless business model, working with third parties to manufacture, assemble and test our ICs.

This fabless approach allows us to focus our engineering and design resources on our strengths and to reduce our fixed costs and capital expenditures.

In contrast to many fabless semiconductor companies, which utilize standard process technologies and design rules established by their foundry partners, we have developed our own proprietary process and packaging technologies and collaborate with our foundry partners to install our technologies on their equipment in their facilities for use on our behalf.

This close collaboration and control over the manufacturing process has historically resulted in favorable yields and product performance for our ICs.

In contrast to many fabless semiconductor companies, which utilize standard process technologies and design rules established by their foundry partners, we have developed our own proprietary process and packaging technologies and collaborate with our foundry partners to install our technologies on equipment in their facilities for use on our behalf.

This close collaboration and control over the manufacturing process have historically resulted in favorable yields and product performance for our ICs.

We maintain a diversified and adaptable supply chain.

We currently contract with several suppliers to manufacture our wafers in foundries located in China, Taiwan, South Korea and Singapore.

Once our silicon wafers have been produced, they are shipped to the facilities in China, Taiwan, and Singapore that we and our partners utilize for wafer sort, which is a testing process performed to identify non-functioning dies.

Our semiconductor products are then assembled and packaged by independent subcontractors in China, Taiwan and Malaysia.

The assembled ICs are then sent for final testing to the facilities in China, Taiwan and Malaysia that we and our partners utilize prior to shipping to our customers.

Our strategy is to maintain a diversified supply chain.

Once our silicon wafers have been produced, they are shipped to facilities in China, Taiwan, Singapore, Malaysia and South Korea that we and our partners utilize for wafer sort, which is a testing process performed to identify non-functioning dies.

Our semiconductor products are then assembled and packaged by independent subcontractors in China, Taiwan, Malaysia and South Korea.

The assembled ICs are then sent for final testing to facilities in China, Taiwan, Singapore, Malaysia and South Korea that we and our partners utilize prior to shipping to our customers.

The manufacturing facilities we utilize in Asia enable us to benefit from shorter manufacturing cycle times and lower labor and overhead costs.

We have expanded our product testing capabilities in these facilities and are able to take advantage of the rich pool of local engineering talent to expand our manufacturing support and engineering operations.

In addition, diversifying our manufacturing footprint across multiple countries helps mitigate operational risks and enhances our ability to adapt and maintain continuity.

The analog and mixed-signal semiconductor industry is highly competitive, and we expect competitive pressures to continue.

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We expect continued competition from existing competitors as well as competition from new entrants into the semiconductor market.

We believe that we are competitive in the markets in which we sell, because our ICs typically are smaller in size, are highly integrated with lower energy consumption, and achieve higher performance specifications than most of our competitors.

We believe that we are competitive in the markets in which we sell because our ICs and solutions are typically smaller in size, are highly integrated with lower energy consumption, and achieve higher performance specifications than most of our competitors.

However, there is no assurance that our products will continue to compete favorably or that we will be successful in the face of increasing competition from new products introduced by existing competitors or new companies entering our markets.

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While we are subject to industry downturns, we have targeted product and market areas that we believe allow us to operate at above average industry performance levels over the long term.

Historically, our revenue has generally been higher in the second half of the year than in the first half although various factors, such as market conditions and the timing of key product introductions, could impact this trend.

Government Regulations

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worker health and safety;

and other activities affecting the environment, our workforce, and the management of our manufacturing operations.

and other activities affecting the environment, our workforce, and the management of our manufacturing operations and research and development.

We believe that our operations and facilities comply in all material respects with applicable environmental laws and worker health and safety laws.

We and our supply chain, including the end products which contain our products, are also subject to import/export controls, tariffs, and other trade-related regulations and restrictions in the countries in which we, our supply chain or the providers of such end products, have operations or otherwise do business.

Government regulations and import/export controls can be complex and are subject to change in the future, and in some cases unexpectedly, and accordingly, we are unable to assess the possible effect of compliance with future requirements.

Our efforts to comply with these government regulations could have material impacts on our capital expenditures, operating expenses, revenue, resource allocation, operations, competitive position, or financial condition, and the magnitude and duration of such impacts are uncertain and difficult to quantify.

Government regulations and import/export controls can be complex and are subject to change in the future, in some cases unexpectedly, and accordingly, we are unable to assess the possible effect on our business and financial results of compliance with future requirements.

Our efforts to comply with these government regulations could have material impacts on our capital expenditures, operating expenses, revenue, margins, resource allocation, operations, competitive position, or financial condition, and the magnitude and duration of such impacts are uncertain and difficult to quantify.

Refer to “Item 1A.

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We have never experienced an employee-based work stoppage or strike.

We strive to maintain a culture that encourages innovation and create a workplace that values diverse skill sets and experience, a healthy and safe environment, and professional growth opportunities.

We continue to recruit new talent from a diverse candidate pool through various university recruitment programs and employment websites targeting underrepresented groups.

We strive to maintain a culture that encourages innovation and create a workplace that values a broad range of skill sets and experience, a healthy and safe environment, and professional growth opportunities:

We continue to recruit and sponsor talent from a broad candidate pool through various university recruitment programs and partnerships.

We provide unconscious bias training to promote an environment of inclusivity.

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Our total compensation packages are competitive, fair, and structured to encourage employees to invest in our future.

We also sponsor a 401(k) retirement savings plan for our U.S.

employees with matching employer contributions.

We provide employees with access to various learning tools and resources to explore their interests and develop their business skills and knowledge.

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We support the well-being of our employees.

In certain offices, we offer onsite flu shot clinics and other annual health checkups and workshops.

Our largest facilities have amenities including fitness centers, sports courts and private rooms for nursing.

In certain offices, we offer onsite flu and vaccine shot clinics and other annual health checkups and workshops.

Our largest facilities have amenities including fitness centers, sport courts and private rooms for nursing.

We also offer free exercise classes, strength training and yoga in some of our offices.

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Information About Executive Officers

Information regarding our executive officers as of March 3, 2025 is as follows:

Information regarding our executive officers as of February 27, 2026 is as follows:

Michael Hsing

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Bernie Blegen (1)

Executive Vice President and Chief Financial Officer

Executive Vice President, Chief Financial Officer

Executive Vice President, Global Operations

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Executive Vice President, Strategic Corporate Development, General Counsel and Corporate Secretary

Michael Hsing has served as the chairman of our Board of Directors and has served as our President and Chief Executive Officer since founding MPS in August 1997.

Effective immediately following the filing of this Annual Report on Form 10-K, Mr.

Blegen will cease to serve as Executive Vice President and Chief Financial Officer.

Rob Dean, our current Corporate Controller, will commence serving as the Interim Chief Financial Officer at that time.

Michael Hsing founded MPS in 1997 and currently serves as our President, Chief Executive Officer, Chairman of the Board of Directors.

Prior to founding MPS, Mr.

Hsing was a Senior Silicon Technology Developer at several analog IC companies, where he developed and patented key technologies, which set new standards in the Power Electronics industry.

Hsing is an inventor on numerous patents related to the process development of bipolar mixed-signal semiconductor manufacturing.

Hsing holds a B.S.E.E.

from the University of Florida.

Bernie Blegen has served as our Chief Financial Officer since July 2016 and is responsible for finance, accounting, tax, treasury and investor relations.

From August 2011 to June 2016, Mr.

Blegen served as our Corporate Controller.

Prior to joining MPS, Mr.

Hsing took the company through its IPO.

Under his leadership, we are constantly creating cutting-edge products to improve the quality of life with green, easy-to-use systems solutions.

Bernie Blegen currently serves as Executive Vice President and Chief Financial Officer.

He has served as our Chief Financial Officer since July 2016 and is responsible for finance, accounting, tax, treasury and investor relations.

From August 2011 to March 2016, Mr.

Blegen served as our Corporate Controller, and from March 2016 to July 2016, as our interim Chief Financial Officer.

Blegen joined us with more than 25 years of experience in corporate strategy, mergers and acquisitions, tax, finance and accounting in the semiconductor, software and publishing industries.

Prior to joining us, Mr.

Blegen held a number of executive finance and accounting positions for other publicly traded technology companies, including Xilinx, Inc.

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from the University of California, Santa Barbara.

Deming Xiao previously served as our President of Asia Operations since January 2008.

Deming Xiao currently serves as our Executive Vice President of Global Operations.

He served as our President of Asia Operations since January 2008.

Since joining us in May 2001, Mr.

Xiao has held several executive positions, including Foundry Manager and Senior Vice President of Operations.

Before joining MPS, from June 2000 to May 2001, Mr.

Xiao held several executive positions, including Foundry Manager and Senior Vice President of Operations.

Before joining us, from June 2000 to May 2001, Mr.

Xiao was Engineering Account Manager at Chartered Semiconductor Manufacturing, Inc.

Prior to that, Mr.

Xiao spent six years as Manager of Process Integration Engineering at Fairchild Imaging Sensors.

Xiao spent 6 years as Manager of Process Integration Engineering at Fairchild Imaging Sensors.

Xiao holds a B.S.

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from Wayne State University.

Maurice Sciammas previously served as our Senior Vice President of Worldwide Sales and Marketing since 2007.

Sciammas joined MPS in July 1999 and served as Vice President of Products and Vice President of Sales (excluding greater China) until he was appointed to his current position.

Before joining MPS, he was Director of IC Products at Supertex from 1990 to 1999.

Maurice Sciammas currently serves as our Executive Vice President of Worldwide Sales and Marketing.

Sciammas joined us in July 1999 and served as Senior Vice President of Worldwide Sales and Marketing until he was appointed to his current position.

Before joining us, he was Director of IC Products at Supertex from 1990 to 1999.

He has also held positions at Micrel, Inc.

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degree from San Jose State University.

Saria Tseng previously served as our Vice President, General Counsel and Corporate Secretary since 2004 and additionally as our Vice President, Strategic Corporate Development since 2009.

Saria Tseng currently serves as Executive Vice President, Strategic Corporate Development, General Counsel and Corporate Secretary.

She has served as our Vice President, General Counsel and Corporate Secretary since 2004 and additionally as our Vice President, Strategic Corporate Development since 2009.

Tseng joined the Company from MaXXan Systems, Inc., where she was Vice President and General Counsel from 2001 to 2004.

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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.

What changed 10-K

Item 1. Business