What changed in this filing

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Item 1. Business

2022-02-07 compared with 2021-02-05 · 48 added, 34 removed, 284 unchanged (22% of the section changed)

31 unchanged sentences

For example, applications such as “smart” utility meters, battery-powered lawn equipment and bicycles, and USB power receptacles (often installed alongside traditional AC wall outlets) can incorporate our products.

The increased use of electronic intelligence and connectivity in consumer appliances has also enhanced our SAM.

Finally, we have enhanced our SAM through the development of new technologies that increase the value (and therefore the average selling prices) of our products.

The increased use of connectivity, LED lighting and other power-consuming electronic features in consumer appliances has also enhanced our SAM.

Finally, we have expanded our SAM through the development of new technologies that increase the value (and therefore the average selling prices) of our products.

For example, our InnoSwitch™ ICs integrate circuitry from the secondary, or low-voltage, side of AC-DC power supplies, whereas earlier product families integrated circuitry only on the primary, or high-voltage side.

In 2019 we began incorporating proprietary gallium-nitride (GaN) transistors in some our products, enabling a higher level of energy efficiency than ICs with traditional silicon transistors.

In 2019 we began incorporating proprietary gallium-nitride (GaN) transistors in some our products, enabling a higher level of energy efficiency than ICs with silicon transistors.

Since then, we have introduced a variety of new products utilizing GaN technology and we expect to address a wider range of applications with GaN-based products in the years ahead.

We intend to continue expanding our SAM in the years ahead through all of the means described above.

36 unchanged sentences

Products in our current IC families can address AC-DC power supplies with output power up to approximately 500 watts as well as some high-voltage DC-DC applications;

our high-voltage gate drivers are used in applications with power levels as high as one gigawatt, while our motor-driver ICs address BLDC applications up to 300 watts.

our high-voltage gate drivers are used in applications with power levels as high as one gigawatt, while our motor-driver ICs address BLDC applications up to about 400 watts.

Within each of our product families, designers can scale up or down in power to address a wide range of designs with minimal design effort.

25 unchanged sentences

We believe we offer products that enable manufacturers to meet or exceed these regulations, and all other such regulations of which we are aware.

Our EcoSmart technology, introduced in 1998, dramatically reduces waste in both operating and standby modes;

we estimate that this technology has saved billions of dollars’ worth of standby power worldwide since 1998.

In 2010 we introduced our CapZero and SenZero IC families, which eliminate additional sources of standby waste in some power supplies;

Since 1998, our AC-DC power-conversion ICs have featured our EcoSmart technology which drastically reduces standby power waste.

We have sold more than 18 billion ICs featuring EcoSmart technology, resulting in estimated savings of more than $15 billion worth of standby power worldwide.

In 2010 we expanded our portfolio of energy-saving products with the introduction of our CapZero and SenZero IC families, which eliminate additional sources of standby waste in some power supplies.

We also offer a range of products designed specifically for LED-lighting applications.

Our GaN technology, introduced in 2019, also dramatically improves the active-mode efficiency of power-supplies.

Below is a brief description of our products:

6 unchanged sentences

These ICs employ a proprietary technology known as FluxLink to enable precise control without the need for optical components, which tend to add cost and diminish the reliability of power supplies.

In 2019 we began offering InnoSwitch ICs with more-efficient GaN transistors rather than silicon transistors.

In 2020 we introduced GaN-based MinE-CAP ICs, which enable the use of smaller input capacitors as a way to further reduce the size of a power supply.

Our ClampZero ICs, introduced in 2021 alongside the GaN-based InnoSwitch4-CZ family of ICs, further enhance efficiency by recovering power losses associated with the high switching frequency of GaN transistors.

This portfolio of power-conversion products generally addresses power supplies ranging from less than one watt of output up to approximately 500 watts of output, a market we refer to as the “low-power” market.

This market consists of an extremely broad range of applications including mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, and numerous other consumer and industrial applications, as well as LED lighting.

This market consists of an extremely broad range of applications including mobile-device chargers, consumer appliances, utility meters, LCD

monitors, main and standby power supplies for desktop computers and TVs, and numerous other consumer and industrial applications, as well as LED lighting.

We also now offer automotive-qualified versions of certain products, such as InnoSwitch ICs, for use in electric vehicles.

● High-voltage gate drivers

We offer a range of high-voltage gate-driver products sold primarily under the SCALE and SCALE-2 product-family names.

These products are fully assembled circuit boards incorporating multiple ICs, electrical isolation

components and other circuitry.

These products are fully assembled circuit boards incorporating multiple ICs, electrical isolation components and other circuitry.

We offer both ready-to-operate “plug-and-play” drivers designed specifically for use with particular IGBT modules, as well as “driver cores,” which provide more basic driver functionality that customers can customize to their own specifications after purchase.

In May 2016 we introduced the SCALE-iDriver family of standalone ICs, which enables us to address applications ranging from a few kilowatts up to about 100 kilowatts, whereas previously our sales of high-power products were primarily for applications above 100 kilowatts.

In 2016 we introduced the SCALE-iDriver family of standalone ICs, which enables us to address applications ranging from a few kilowatts up to about 100 kilowatts, whereas previously our sales of high-power products were primarily for applications above 100 kilowatts.

In 2020 we introduced an automotive-qualified version of SCALE-iDriver suitable for use in powertrain and charging applications for electric vehicles.

● Motor-driver products

15 unchanged sentences

Communications

Mobile-phone chargers, adaptors for routers, cordless phones, broadband modems, voice-over-IP phones, other network and telecom gear

Mobile-phone chargers, adapters for routers, cordless phones, broadband modems, voice-over-IP phones, other network and telecom gear

Desktop PCs and monitors, servers, adapters for tablets and notebook computers, other computer peripherals

11 unchanged sentences

Our top ten customers, including distributors that resell to OEMs and merchant power supply manufacturers, accounted for approximately 78%, 62% and 54% of net revenues in 2021, 2020 and 2019, respectively.

In 2020, two distributors accounted for more than 10% of revenues.

In 2019 and 2018, one of these distributors accounted for more than 10% of revenues.

In 2021 and 2020, two customers, both distributors, each accounted for more than 10% of revenues.

In 2019, one of these distributors accounted for more than 10% of revenues.

Research and Development

11 unchanged sentences

We also hold trademarks in the U.S.

and various other geographies including Taiwan, Korea, Hong Kong, China, Europe, Japan, India, and Brazil.

and various other geographies including Taiwan, Korea, Hong Kong, China, United Kingdom, Europe, Japan, India, Brazil and Russia.

We regard as proprietary some equipment, processes, information and knowledge that we have developed and used in the design and manufacture of our products.

3 unchanged sentences

We contract with three foundries for the manufacture of the vast majority of our silicon wafers:

(1) Lapis Semiconductor Co., Ltd., or Lapis, (formerly OKI Electric Industry), (2) Seiko Epson Corporation, or Epson, (3) X-FAB Semiconductor Foundries AG, or X-FAB.

(1) Lapis Semiconductor Co., Ltd., or Lapis, (formerly OKI Electric Industry), (2) Seiko Epson Corporation, or Epson and (3) X-FAB Semiconductor Foundries AG, or X-FAB.

These contractors manufacture wafers using our proprietary high-voltage process technologies at fabrication facilities located in Japan, Germany and the United States.

5 unchanged sentences

We utilize both proprietary and standard IC packages for assembly.

Some of the materials used in our packages and certain aspects of the assembly process are specific to our products.

Some of the materials used in our packages and certain aspects of the assembly process are specific

to our products.

We require our assembly manufacturers to use high-voltage molding compounds which are more difficult to process than industry standard molding compounds.

4 unchanged sentences

Under the terms of the Lapis and Epson agreements, each supplier has agreed to reserve a specified amount of production capacity and to sell wafers to us at fixed prices, which are subject to periodic review jointly by the supplier and us.

In addition, Lapis and

Epson require us to supply them with a rolling six-month forecast on a monthly basis.

In addition, Lapis and Epson require us to supply them with a rolling six-month forecast on a monthly basis.

Our agreements with Lapis and Epson each provide for the purchase of wafers in U.S.

10 unchanged sentences

We try to carry a substantial amount of wafer and finished-goods inventory to help offset these risks and to better serve our markets and meet customer demand.

Competing alternatives to our high-voltage ICs for the power-supply market include monolithic and hybrid ICs from companies such as ON Semiconductor, STMicroelectronics, Infineon, and Sanken Electric Company, as well as PWM-controller chips paired with discrete high-voltage bipolar transistors and MOSFETs;

such controller chips are produced by a large number of vendors, including those listed above as well as such companies as NXP Semiconductors, Diodes Inc., On-Bright Electronics and Dialog Semiconductor.

Self-oscillating switchers, built with discrete components supplied by numerous vendors, are also commonly used.

9 unchanged sentences

This support includes hands-on design assistance as well as a range of design tools and documentation such as software and reference designs.

We also believe that our record of product quality and history of delivering products to our customers on a timely basis serve as additional competitive advantages.

We also believe that our record of

product quality and history of delivering products to our customers on a timely basis serve as additional competitive advantages.

We generally warrant that our products will substantially conform to the published specifications for 12 months from the date of shipment.

3 unchanged sentences

As of December 31, 2021, 5% of our worldwide employees were foreign nationals, defined as individuals requiring employment visas in the countries where they are employed.

Women comprise more than 40% of our U.S.

non-technical workforce.

Women comprise approximately 36% of our U.S.

non-technical workforce and 26% of our U.S.

The ethnic makeup of our U.S.

21 unchanged sentences

These items are also available in print to any stockholder who requests them by calling (408) 414-9200.

We intend to satisfy the disclosure requirements of Form 8-K regarding an amendment to, or a waiver from, a provision of our code of business conduct and ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions by posting such information on our investor website listed above.

We intend to satisfy the disclosure requirements of Form 8-K regarding an amendment to, or a waiver from, a provision of our code of business conduct and ethics that applies

to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions by posting such information on our investor website listed above.

Power Integrations, Inc.

13 unchanged sentences

Vice President, Finance and Chief Financial Officer

Ben Sutherland

Yang Chiah Yee

Vice President, Worldwide Sales

16 unchanged sentences

Barsan served as chairman and CEO at Redfern Integrated Optics, Inc., a supplier of single-frequency narrow linewidth lasers, modules, and subsystems, from 2001 to 2013.

Previously, he served in a succession of engineering-management and technology-development roles at Phaethon Communications, Inc., a photonics technology company, Cirrus Logic, Inc., a high-precision analog and digital signal processing company, Advanced Micro Devices, a semiconductor design company, Cypress Semiconductor, Inc., a semiconductor company and Microelectronica, a semiconductor company.

Previously, he served in a succession of engineering-management and technology-development roles at Phaethon Communications, Inc., a photonics technology company, Cirrus Logic, Inc., a high-precision analog and digital signal processing company, Advanced Micro Devices, a semiconductor company, Cypress Semiconductor, Inc., a semiconductor company and Microelectronica, a semiconductor company.

Barsan has 40 years of commercial experience in semiconductor and photonic components development, engineering and operations.

9 unchanged sentences

Matthews joined Power Integrations in 1992, managing our European application-engineering group and then our European sales organization as managing director of Power Integrations (Europe).

He has led our product-definition team since 2000, serving as director of strategic marketing prior to assuming his current role.

He has led our product-definition team since 2000,

serving as director of strategic marketing prior to assuming his current role.

Prior to joining Power Integrations, Mr.

10 unchanged sentences

in 2021 he was named lead independent director.

Ben Sutherland has served as our vice president, worldwide sales since July 2011.

Sutherland joined our company in May 2000 as a member of our sales organization in Europe.

From May 2000 to July 2011, Mr.

Sutherland served in various sales positions responsible primarily for our international sales, and more recently for domestic sales.

From 1997 to 2000, Mr.

Sutherland served in various product marketing and sales roles at Vishay Intertechnology, Inc., a manufacturer and supplier of discrete semiconductors and passive electronic components.

Yang Chiah Yee has served as our vice president, worldwide sales since June 2021.

From March 2018 to June 2021, Mr.

Yee served as senior vice president of worldwide sales at NeoPhotonics Corporation, a supplier of optoelectronic modules and subsystems for high-speed communication networks, where he was responsible for managing the worldwide sales and customer service organization, meeting with major clients, designing effective sales strategies and negotiating major contracts.

From August 2016 to February 2017 Mr.

Yee served as senior vice president of worldwide sales at IDEX Biometrics ASA, a supplier of fingerprint sensor solutions for payment cards, digital wallets and cyber authentication.

From March 2008 to March 2016, Mr.

Yee served in various senior sales roles at Atmel Corporation, a semiconductor designer and manufacturer of microcontroller and memory chips before its acquisition by Microhip Technology, Inc.

Yee’s earlier experience includes senior sales roles at Xilinx Inc.

and Memec LLC focusing on the Asia-Pacific region.

Yee received a bachelor of engineering degree from Nanyang Technological Institute at the National University of Singapore, and holds a graduate diploma in marketing management from the Singapore Institute of Management.

Clifford Walker has served as our vice president, corporate development since June 1995.

4 unchanged sentences

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