What changed in this filing

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Item 1. Business

2026-02-06 compared with 2025-02-07 · 97 added, 138 removed, 211 unchanged (53% of the section changed)

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A large percentage of our products are ICs used in AC-DC power supplies, which convert the high-voltage AC from a wall outlet to the low-voltage DC required by most electronic devices.

Power supplies incorporating our products are used with all manner of electronic products including appliances, industrial controls, mobile devices such as smartphones, tablets and notebook computers, electronic utility meters, battery-powered tools, and “home-automation,” or “internet of things” applications such as networked thermostats, power strips and security devices.

Power supplies incorporating our products are used with all manner of electronic products including industrial controls, “smart” utility meters, appliances, air conditioners, battery-powered tools, building-automation, or “internet-of-things” applications such as networked thermostats and security devices, and mobile devices such as smartphones, tablets and notebook computers.

Variations of our power-supply ICs are used for high-voltage power conversion in electric vehicles (“EVs”).

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While the size of our addressable market fluctuates with changes in macroeconomic and industry conditions, the market has generally exhibited a modest growth rate over time as growth in the unit volume of power converters has been offset to a large degree by reductions in the average selling price of components in this market.

Therefore, the growth of our business depends largely on increasing our penetration of the markets that we serve and on further expanding our addressable market.

Therefore, the growth of our business depends largely on increasing our penetration of the markets that we serve, creating value for our customers and on further expanding our addressable market.

Our growth strategy includes the following elements:

● Increase our penetration of the markets we serve.

We currently address AC-DC applications with power outputs up to approximately 500 watts, gate-driver applications ranging from 100 kilowatts up to gigawatts, and motor-drive applications up to approximately one horsepower.

Through our research and development efforts, we seek to introduce more advanced products for these markets offering higher levels of integration and performance compared to earlier products.

We also continue to expand our offerings of technical documentation and design-support tools and services to help customers use our products.

These tools and services include our PI Expert™ design software, our transformer-sample service and our PowerPros ℠ , a live online video support service that enables power-supply designers to talk directly with members of our applications engineering team from anywhere in the world.

● Increase the size of our addressable market.

Prior to 2010 our addressable market consisted of AC-DC applications with up to about 50 watts of output, a served available market (“SAM”) opportunity of approximately $1.5 billion.

Since then, we have expanded our SAM to approximately $4 billion through a variety of means.

These include the introduction of products that enable us to address higher-power AC-DC applications (such as our Hiper™ product families), the introduction of LED-driver products, and our entry into the gate-driver market In 2018 we introduced our BridgeSwitch™ motor-driver ICs for BLDC motors, and in 2024 we introduced BridgeSwitch-2, extending the addressable power range of our motor-driver products up to about one horsepower.

We have recently introduced a range of products targeting the EV market;

we plan to introduce additional products for EVs in the future, and expect automotive applications to become a significant portion of our SAM over time.

Prior to 2010 our addressable market consisted of AC-DC applications with up to about 50 watts of output.

Since then, we have expanded our served available market (“SAM”) to approximately $5 billion through a variety of means.

We have also introduced products targeting the EV market and expect automotive applications to become a significant portion of our SAM over time.

Also contributing to our SAM expansion has been the emergence of new applications within the power ranges that our products can address.

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Our InnoMux™ IC families provide up to three DC outputs, eliminating the need for additional power-management circuitry in certain end products requiring multiple voltages while significantly increasing efficiency.

● Increase our penetration of the markets we serve.

Through our research and development efforts, we seek to introduce more advanced products for these markets offering higher levels of integration and performance compared to earlier products.

We also continue to expand our sales and application-engineering staff and our network of distributors, as well as our offerings of technical documentation and design-support tools and services to help customers use our products.

These tools and services include our PI Expert™ design software, which we offer free of charge, and our transformer-sample service.

In 2022 we launched PowerPros ℠ , a live online video support service that enables power-supply designers to talk directly with members of our applications engineering team 24 hours a day, six days a week, anywhere in the world.

● Leverage the performance benefits of our proprietary gallium-nitride (“GaN”) technology.

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

Our proprietary PowiGaN ™ high-voltage transistor technology, introduced in 2019, increases the value of our ICs by replacing silicon transistors with higher-performance gallium-nitride (“GaN”) switches, and also enables us to address a wider range of applications.

● Leverage the performance benefits of our proprietary GaN technology.

In 2019 we began incorporating our proprietary PowiGaN ™ transistors in some of 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 developed new generations of our GaN technology capable of supporting voltages as high as 1700 volts.

While high-voltage GaN transistors have historically been more costly to produce than comparable silicon transistors, we have achieved cost reductions such that our GaN devices are approaching cost parity with silicon MOSFETs.

We are developing additional products incorporating GaN transistors, which we believe will enable us to address higher-power applications than we address with our current range of products, and further expand our SAM as discussed above.

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Additionally, we are developing GaN technologies capable of supporting higher power output than today’s GaN devices, with an aim of developing products to address power-switching modules in EV drivetrains, which currently incorporate SiC and IGBT modules.

In July 2024 we acquired the assets of Odyssey Semiconductor, a developer of so-called vertical GaN technology, in an effort to accelerate our development of higher-power GaN devices.

In July 2024 we acquired the assets of Odyssey Semiconductor, a developer of vertical GaN technology, in an effort to accelerate our development of higher-power GaN devices.

We believe the development of such technologies will take several years to complete.

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our EcoSmart™ technology drastically reduces the amount of energy consumed by electronic products when they are plugged in but not in use;

our PowiGaN™ gallium-nitride (“GaN”) transistors reduce energy consumption compared to silicon transistors;

our PowiGaN™ transistors reduce energy consumption compared to silicon transistors;

and our BridgeSwitch™ motor-driver ICs provide highly efficient power conversion for BLDC motors in appliances and industrial applications.

renewable energy installations to the power grid), and low-emissions transportation applications such as electric locomotives.

Industry Background

Also, our gate-driver products are critical components in energy-efficient DC motor drives, solar- and wind-power systems, efficient high-voltage DC transmission systems (including transmission of energy from renewable energy installations to the power grid), and low-emissions transportation applications such as electric locomotives.

Background – Our Highly Integrated Approach to High-Voltage Power Conversion

Virtually every electronic device that plugs into a wall socket requires a power supply to convert the high-voltage alternating current provided by electric utilities into the low-voltage direct current required by most electronic devices.

A power supply may be located inside a device, such as a consumer appliance or flat-panel TV, or it may be outside the device as in the case of a mobile-phone charger or an adapter for a cordless phone or cable modem.

Until approximately 1970, AC-DC power supplies were generally in the form of line-frequency, or linear, transformers.

These devices, consisting primarily of copper wire wound around an iron core, tend to be bulky and heavy, and typically waste a substantial amount of electricity.

In the 1970s, the availability of high-voltage discrete semiconductors enabled the development of a new generation of power supplies known as switched-mode power supplies, or switchers.

These switchers generally came to be cost-effective alternatives to linear transformers in applications requiring more than a few watts of power;

in recent years the use of linear transformers has declined even further as a result of energy-efficiency standards and higher raw-material prices.

Switchers are generally smaller, lighter-weight and more energy-efficient than linear transformers.

However, switchers designed with discrete components are highly complex, containing numerous components and requiring a high level of analog design expertise.

Further, the complexity and high component count of discrete switchers make them relatively costly, difficult to manufacture and prone to failures.

Also, some discrete switchers lack protection and energy-efficiency features;

adding these features may further increase the component count, cost and complexity of the power supply.

In high-power systems such as industrial motor drives, electric locomotives and renewable-energy systems, power conversion is typically performed using arrays of high-power silicon transistors known as IGBT modules;

these modules are operated by electronic circuitry known as gate drivers (or IGBT drivers), whose function is to ensure accurate, safe and reliable operation of the IGBT modules.

In the 1970s, the availability of high-voltage discrete semiconductors enabled the development of a new generation of power supplies known as switched-mode power supplies (“SMPS”).

While SMPS are generally smaller, lighter-weight and more energy-efficient than linear transformers, early versions designed with discrete components were highly complex, containing numerous components and requiring a high level of analog design expertise.

these modules are operated by electronic circuitry known as gate drivers, whose function is to ensure accurate, safe and reliable operation of the IGBT modules.

Like discrete power supplies, discrete gate drivers tend to be highly complex, requiring a large number of components and a great deal of design expertise.

Our Highly Integrated Approach

In 1994 we introduced TOPSwitch ™ , the industry’s first cost-effective high-voltage IC for switched-mode AC-DC power supplies.

We have since introduced a range of other product families, expanding the range of power-supply applications we can serve and enhancing our competitiveness in applications we already addressed .

In 2012 we expanded our addressable market to include high-voltage gate drivers, and in 2018 we introduced our BridgeSwitch motor-driver ICs for BLDC motors.

We have further expanded our addressable market with the addition of high-voltage gate drivers and motor-driver ICs for BLDC motors.

Our products drastically reduce the complexity and component count of power converters compared to typical discrete designs by integrating many of the functions otherwise performed by numerous discrete electronic components, and by eliminating (or reducing the size and cost of) additional components through innovative system design.

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● Fewer Components, Reduced Size and Higher Reliability

Our highly integrated ICs and gate drivers enable designs with up to 70% fewer components than comparable discrete designs.

Our highly integrated ICs and gate drivers enable designs with far fewer components than comparable discrete designs.

This reduction in component count enhances reliability and efficiency, reduces size, and results in lower manufacturing costs for our customers.

Power supplies that incorporate our ICs are also lighter and more portable than comparable power supplies built with linear transformers, which are still used in some low-power applications.

● Reduced Time-to-Market, Enhanced Manufacturability

Because our products eliminate much of the complexity associated with the design of power converters, designs can typically be completed in much less time, resulting in more efficient use of our customers’ design resources and shorter time-to-market for new designs.

Because our products eliminate much of the complexity associated with the design of power converters, designs can typically be completed in less time, resulting in more efficient use of customers’ design resources and shorter time-to-market for new designs.

The lower component count and reduced complexity enabled by our products also makes designs more suitable for high-volume manufacturing.

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This technology enables manufacturers to cost-effectively meet the growing demand for energy-efficient products, and to comply with increasingly stringent energy-efficiency requirements.

Our proprietary GaN transistor technology, introduced in 2019, offers substantially higher levels of active-mode efficiency compared to traditional silicon switches, while our BridgeSwitch motor-driver ICs enable efficiency of up to 98.5%, not only minimizing waste but also eliminating the need for heatsinks in many applications, which in turn reduces cost and weight.

Our proprietary GaN transistor technology offers substantially higher levels of active-mode efficiency compared to traditional silicon switches, while our BridgeSwitch ™ motor-driver ICs not only minimize power waste but also eliminate the need for heatsinks in many applications, which in turn reduces cost and weight.

● Wide Power Range and Scalability

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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.

Below is a brief description of our products:

● AC-DC power conversion products

TOPSwitch ™ , our first commercially successful product family, was introduced in 1994.

Since then, we have introduced a wide range of products (such as our TinySwitch ™ , LinkSwitch ™ and Hiper ™ families) to increase the level of integration and improve upon the functionality of the original TOPSwitch ™ , and to broaden the range of power levels we can address.

In 2014 we introduced our InnoSwitch ™ product family, the first power-supply ICs to combine primary, secondary and feedback circuits into a single package.

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 2023 we announced new versions of our InnoSwitch products incorporating GaN transistors with higher voltage ratings of 900 volts and 1250 volts;

earlier GaN products feature transistors rated at 750 volts.

In 2019 we introduced InnoMux ™ ICs, which provide up to three DC outputs, eliminating the need for additional power-management circuitry in certain end products requiring multiple voltages while significantly increasing efficiency.

In 2024 we introduced InnoMux-2 products, featuring GaN transistors rated at 1700 volts.

This portfolio of power-conversion products generally addresses power supplies up to about 500 watts of output.

This market consists of an extremely broad range of applications including consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, 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 EVs.

● 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.

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 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

The BridgeSwitch ™ family of products, introduced in 2018, is a family of motor-driver ICs addressing BLDC motor applications up to approximately 400 watts.

In 2024 we introduced BridgeSwitch ™ -2 ICs, extending the addressable power range to about one horsepower, or 746 watts.

Applications for ICs in the BridgeSwitch ™ families include refrigerator compressors, ceiling fans, air purifiers and circulation pumps, as well as pumps and fans used in appliances such as dishwashers, laundry machines and boilers.

BridgeSwitch ™ products are complemented by our Motor-Xpert ™ software, which provides configuration and diagnostic tools for design engineers.

Energy Efficiency

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In response to concerns about the environmental impact of carbon emissions, policymakers have taken action to promote energy efficiency.

For example, the ENERGY STAR® program and the European Union Code of Conduct encourage manufacturers of electronic devices to comply with voluntary energy-efficiency specifications.

For example, the ENERGY STAR® program and the European Union Code of Conduct

encourage manufacturers of electronic devices to comply with voluntary energy-efficiency specifications.

In 2007 the California Energy Commission (“CEC”) implemented mandatory efficiency standards for external power supplies.

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these federal standards were tightened in 2016.

Similar standards for external power supplies took effect in the European Union in 2010 as part of the EU’s EcoDesign Directive for Energy-Related Products.

Similar standards for external power supplies took effect in the European Union (“EU”) in 2010 as part of the EU’s EcoDesign Directive for Energy-Related Products.

In 2010, the EU EcoDesign Directive implemented standards limiting standby power consumption on a wide range of electronic products.

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

We have sold more than 21 billion ICs featuring EcoSmart technology, resulting in estimated annual savings of about 15 terawatt-hours of standby power worldwide.

We have sold more than 21 billion ICs featuring EcoSmart ™ technology, resulting in estimated savings of hundreds of terawatt-hours (TWh) 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.

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Our InnoMux ™ products, also introduced in 2019, enhance active-mode efficiency in systems with multiple DC outputs by eliminating the losses incurred in separate DC-DC conversion stages.

Below is a brief description of our products:

● AC-DC power conversion products

TOPSwitch, our first commercially successful product family, was introduced in 1994.

Since then, we have introduced a wide range of products (such as our TinySwitch, LinkSwitch and Hiper families) to increase the level of integration and improve upon the functionality of the original TOPSwitch, and to broaden the range of power levels we can address.

In 2014 we introduced our InnoSwitch product family, the first power-supply ICs to combine primary, secondary and feedback circuits into a single package.

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 2023 we announced new versions of our InnoSwitch products incorporating GaN transistors with higher voltage ratings of 900 volts and 1250 volts;

earlier GaN products feature transistors rated at 750 volts.

In 2019 we introduced InnoMux ICs, which provide up to three DC outputs, eliminating the need for additional power-management circuitry in certain end products requiring multiple voltages while significantly increasing efficiency.

In 2024 we introduced InnoMux-2 products, featuring GaN transistors rated at 1700 volts.

This portfolio of power-conversion products generally addresses power supplies up to about 500 watts of output.

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

● 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.

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

The BridgeSwitch family of products, introduced in 2018, is a family of motor-driver ICs addressing BLDC motor applications up to approximately 400 watts.

In 2024 we introduced BridgeSwitch-2 ICs, extending the addressable power range to about one horsepower, or 746 watts.

Applications for ICs in the BridgeSwitch families include refrigerator compressors, ceiling fans, air purifiers and circulation pumps, as well as pumps and fans used in appliances such as dishwashers, laundry machines and boilers.

BridgeSwitch products are complemented by our Motor-Expert software, which provides configuration and diagnostic tools for design engineers.

Other Product Information

TOPSwitch, TinySwitch, LinkSwitch, DPA-Switch, EcoSmart, Hiper, Qspeed, InnoSwitch, BridgeSwitch, SCALE, SCALE-II, SCALE-III, SCALE-iDriver, PeakSwitch, CAPZero, SENZero, ChiPhy, FluxLink, CONCEPT, PI Expert and Motor-Expert are trademarks of Power Integrations, Inc.

TOPSwitch, TinySwitch, LinkSwitch, InnoSwitch, BridgeSwitch, DPA-Switch, LYTSwitch, PeakSwitch, EcoSmart, Hiper, Qspeed, InnoMux, SCALE, SCALE-iDriver, SCALE-iFlex, CAPZero, SENZero, ClampZero, LinkZero, ChiPhy, MineE-CAP, FluxLink, eSIP, eeSIP, eSOP, inSOP, MinSOP, PowerPros, PI Databook, PI Expert and Motor-Xpert are trademarks of Power Integrations, Inc.

End Markets and Applications

Our net revenues consist primarily of sales of the products described above.

When evaluating our net revenues, we categorize our sales into the following four major end-market groupings:

Our net revenue consists primarily of sales of the products described above.

When evaluating our net revenue, we categorize our sales into the following four major end-market groupings:

communications, computer, consumer, and industrial.

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Major and small appliances, air conditioners and other comfort appliances, TVs and set-top boxes, video-game consoles

Industrial controls, LED lighting, utility meters, motor controls, uninterruptible power supplies, battery-powered tools, networked thermostats, power strips and other “smart home” devices, industrial motor drives, renewable energy systems, electric locomotives, electric passenger cars and commercial vehicles, high-voltage DC transmission systems

Industrial motor drives, renewable energy systems, electric locomotives, electric passenger cars and commercial vehicles, high-voltage DC transmission systems, industrial controls, utility meters, motor controls, uninterruptible power supplies, LED lighting, battery-powered tools and lawn equipment, networked thermostats, power strips and other “smart home” devices

Sales, Distribution and Marketing

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We have sales offices in the United States, United Kingdom, Germany, Italy, India, China, Japan, South Korea, the Philippines, Canada, Singapore and Taiwan.

Direct sales to OEMs and merchant power supply manufacturers represented approximately 30%, 31% and 30% of our net product revenues in 2024, 2023 and 2022, respectively, while sales to distributors accounted for the remainder in each of the corresponding years.

Most of our distributors are entitled to return privileges based on revenues and are protected from price reductions affecting their inventories.

Direct sales to OEMs and merchant power supply manufacturers represented approximately 31%, 30% and 31% of our net product revenue in 2025, 2024 and 2023, respectively, while sales to distributors accounted for the remainder in each of the corresponding years.

Most of our distributors are entitled to return privileges based on revenue and are protected from price reductions affecting their inventories.

Our distributors are not subject to minimum purchase requirements, and sales representatives and distributors can discontinue marketing our products at any time.

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Historically, our business has been characterized by short-lead-time orders and quick delivery schedules.

Our top ten customers, including distributors that resell to OEMs and merchant power supply manufacturers, accounted for approximately 79%, 80% and 76% of net revenues in 2024, 2023 and 2022, respectively.

In 2024, two customers, both distributors, each accounted for more than 10% of revenues, in 2023, three customers, all distributors, each accounted for more than 10% of revenues, and in 2022, two customers, both distributors, each accounted for more than 10% of revenues.

Our top ten customers, including distributors that resell to OEMs and merchant power supply manufacturers, accounted for approximately 81%, 79% and 80% of net revenue in 2025, 2024 and 2023, respectively.

In 2025, two customers, both distributors, each accounted for more than 10% of revenue, in 2024, two customers, both distributors, each accounted for more than 10% of revenue, and in 2023, three customers, all distributors, each accounted for more than 10% of revenue .

Research and Development

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We also hold trademarks in the U.S.

and various other geographies including Brazil, China, the European Union, Hong Kong, India, Japan, Korea, Russia, Switzerland, Taiwan, Turkey, and the United Kingdom.

and various other geographies including Bangladesh, Brazil, China, the EU, Hong Kong, India, Japan, Korea, Russia, Switzerland, Taiwan, Turkey, and the United Kingdom.

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

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However, because of our highly sensitive high-voltage process, we must interact closely with our foundries to achieve satisfactory yields.

Our wafer supply agreements with Lapis, Epson and X-FAB expire in April 2028, December 2025 and December 2028, respectively.

Our wafer supply agreements with Lapis, Epson and X-FAB expire in December 2028, December 2035 and December 2028, respectively.

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.

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Our purchases of wafers from X-FAB are denominated in U.S.

Although some aspects of our relationships with Lapis, Epson and X-FAB are contractual, some important aspects of these relationships are not written in binding contracts and depend on the suppliers’ continued cooperation.

We cannot assure that we will continue to work successfully with Lapis, Epson or X-FAB in the future, that they will continue to provide us with sufficient capacity at their foundries to meet our needs, or that any of them will not seek an early termination of their wafer supply agreement with us.

Our operating results could suffer in the event of a supply disruption with one or more of our foundries if we were unable to quickly qualify alternative manufacturing sources for existing or new products or if these sources were unable to produce wafers with acceptable manufacturing yields.

We typically receive shipments from our foundries approximately four to six weeks after placing orders, and lead times for new products can be substantially longer.

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Competing alternatives to our high-voltage ICs for the power-supply market include monolithic and hybrid ICs from companies such as STMicroelectronics, Infineon Technologies and Sanken Electric Company, as well as PWM-controller chips paired with discrete high-voltage silicon or GaN transistors.

Such controller chips are produced by a large number of vendors, including those listed above as well as others including NXP Semiconductors, Diodes Inc., On-Bright Electronics, MediaTek Inc., Renesas Electronics and, in recent years, an increasing number of Chinese suppliers such as Southchip Semiconductor, Chipown Microelectronics and Hangzhou Silan Microelectronics Co.

Such controller chips are produced by a large number of vendors, including those listed above as well as others including NXP Semiconductors, Texas Instruments, Diodes Inc., On-Bright Electronics, MediaTek Inc., Renesas Electronics, and, in recent years, an increasing number of Chinese suppliers such as Southchip Semiconductor, Chipown Microelectronics and Hangzhou Silan Microelectronics Co.

Competing suppliers of high-voltage GaN products include InnoScience, Infineon, Renesas, Texas Instruments, Navitas Semiconductor and others.

Our gate-driver products compete with alternatives from such companies as Infineon, Mitsubishi Electric, Fuji Electric, Semikron and Hangzhou Firstack Technology Co., as well as driver circuits made up of discrete devices.

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Our failure to comply with laws, rules and regulations could subject us to future liabilities.

See also our risk factors under Part I.

Risk Factors in this Annual Report on Form 10-K under “Risks Related to Laws and Regulations.”

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As of December 31, 2025, 6% of our worldwide employees were foreign nationals, defined as individuals requiring employment visas in the countries where they are employed.

Women comprise approximately 24% of our total U.S.

workforce and 34% of our non-technical U.S.

The ethnic makeup of our U.S.

workforce is approximately as follows:

6% Hispanic or Latino;

Innovation is the lifeblood of our company, and we depend on our people to sustain our competitive advantage.

To attract and retain talented employees, we offer competitive compensation with generous comprehensive benefits for employees and dependents (including domestic partners).

We offer health, dental and vision insurance, covering 85% of

the cost of employee health insurance in 2024, flexible spending accounts for healthcare and child-care expenses, matching 401(k) contributions (at a rate of 50% of the employee contribution, up to a maximum of 4% of the employee’s eligible compensation), employee stock plans, paid vacation and family leave, life and disability insurance, flu vaccinations, tuition reimbursement, charitable gift matching, health-and-wellness programs designed to promote physical well-being and other mental health services.

We offer health, dental and vision insurance, covering 85% of the cost of employee health insurance in 2025, flexible spending accounts for healthcare and child-care expenses, matching 401(k) contributions (at a rate of 50% of the employee contribution, up to a maximum of 4% of the employee’s eligible compensation), employee stock plans, paid vacation and family leave, life and disability insurance, flu vaccinations, tuition reimbursement, charitable gift matching, health-and-wellness programs designed to promote physical well-being and other mental health services.

Approximately 96% of eligible U.S.

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It is our policy to ensure equal employment opportunity for all applicants and employees without regard to prohibited considerations of race, color, religion, sex (including pregnancy, gender identity and sexual orientation), national origin, age, disability or genetic information, marital status or any other classification protected by applicable local, state or federal laws.

Our employees are encouraged to engage with company leadership and raise concerns and questions in person, via e-mail (anonymously if desired), or at our quarterly employee communications meeting with the CEO and senior management team.

All employees receive training in the prevention of sexual harassment and abusive conduct in the workplace.

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We also offer catered lunch-time workshops on a range of personal-development topics such as financial planning, nutrition and stress management.

Additional information regarding our commitment to our people can be found on our website at https://www.power.com/company/sustainability-citizenship/.

Investor Information

Additional information regarding our commitment to our people can be found on our website at https://www.power.com/company/careers/people-our-engine-innovation .

Corporate Information

Power Integrations, Inc.

was incorporated in California on March 25, 1988, and reincorporated in Delaware in December 1997.

Our principal executive offices are located at 5245 Hellyer Ave, San Jose, CA 95138.

Our telephone number is (408) 414-9200.

Available Information

We may use our website, www.power.com , press releases, public conference calls, public webcasts, X and LinkedIn as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.

We make available, free of charge, copies of our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act as soon as reasonably practicable after filing this material electronically or otherwise furnishing it to the SEC.

Investors may obtain free electronic copies or request paper copies of these reports via the “For Investors” section of our website, www.power.com .

Investors may obtain free electronic copies or request paper copies of these reports via the “For Investors” section of our website.

Our website address is provided solely for informational purposes.

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The reports we file with the SEC are also available at www.sec.gov .

We will disclose any waiver we grant to an executive officer or director under our Code of Ethics, or certain amendments to the Code of Ethics, on our website https://investors.power.com/governance/.

Our corporate governance guidelines, the charters of our board committees, and our code of business conduct and ethics, including ethics provisions that apply to our principal executive officer, principal financial officer, controller and senior financial officers, are also available via the investor website listed above.

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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.

was incorporated in California on March 25, 1988, and reincorporated in Delaware in December 1997.

Information About Our Executive Officers

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Position With Power Integrations

Balu Balakrishnan

Jennifer Lloyd

President, Chief Executive Officer and Director

Douglas Bailey

Vice President, Marketing

Vice President, Technology

Vice President, Operations

Chief Financial Officer

Senior Vice President, Operations

Vice President, Worldwide Sales

Sandeep Nayyar

Vice President, Finance and Chief Financial Officer

Clifford Walker

Vice President, Corporate Development

Balu Balakrishnan has served as president, chief executive officer and as a director of Power Integrations since January 2002;

he has also served as chairman of the board since May 2023.

He served as president and chief operating officer from April 2001 to January 2002.

From January 2000 to April 2001, he was vice president of engineering and strategic marketing.

From September 1997 to January 2000, he was vice president of engineering and new business development.

From September 1994 to September 1997, Mr.

Balakrishnan served as vice president of engineering and marketing.

Prior to joining Power Integrations in 1989, Mr.

Balakrishnan was employed by National Semiconductor Corporation.

Douglas Bailey has served as our vice president of marketing since November 2004.

From March 2001 to April 2004, he served as vice president of marketing at ChipX, a structured ASIC company.

His earlier experience includes serving as business management and marketing consultant for Sapiential Prime, Inc., director of sales and business unit manager for 8x8, Inc., and serving in application engineering management for IIT, Inc.

and design engineering roles with LSI Logic, Inmos, Ltd.

Radu Barsan has served as our vice president of technology since January 2013, leading our foundry engineering, technology development and quality organizations.

Prior to joining Power Integrations, Dr.

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 company, Cypress Semiconductor, Inc., a semiconductor company and Microelectronica a semiconductor company.

Barsan has 48 years of commercial experience in semiconductor and photonic components development, engineering and operations.

Sunil Gupta has served as our vice president of operations since August 2020.

Jennifer Lloyd, PhD , has served as president, chief executive officer and as a director of Power Integrations since July 2025;

she also previously served as a member of the board of directors from April 2021 through October 2022.

Previously, from 1997 until July 2025, Dr.

Lloyd served in a succession of increasingly senior technical and management roles at Analog Devices, Inc.

(“Analog”), a global semiconductor leader.

Prior roles included corporate vice president leading Analog’s multi-market power business unit, leadership of Analog’s precision franchise and its healthcare and consumer unit.

Lloyd holds doctoral, master’s, and bachelor’s degrees in electrical engineering and computer science from the Massachusetts Institute of Technology.

Nancy Erba has served as chief financial officer since January 2026.

Erba brings more than 25 years of corporate finance experience, most recently as chief financial officer at Infinera Corporation from 2019 through the company’s acquisition in 2025.

From 2016 to 2019 she was chief financial officer at Immersion Corporation.

held a succession of increasingly senior leadership positions at Seagate Technology, including executive leadership roles in finance, business operations and corporate development.

Erba has been a member of the board of directors and chair of the audit committee at PDF Solutions since June 2019.

She holds an MBA from Baylor University and a bachelor’s degree in mathematics from Smith College.

Sunny Gupta has served as our vice president of operations since August 2020.

Prior to joining Power Integrations, Mr.

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earlier roles included business development and technical sales in India and Japan focusing on the Asia-Pacific, Europe and South Africa markets.

Sandeep Nayyar has served as our vice president and chief financial officer since June 2010.

Previously Mr.

Nayyar served as vice president of finance at Applied Biosystems, Inc., a developer and manufacturer of life-sciences products, from 2002 to 2009.

Nayyar was a member of the executive team with world-wide responsibilities for finance.

From 1990 to 2001, Mr.

Nayyar served in a succession of financial roles including vice president of finance at Quantum Corporation, a computer storage company.

Nayyar also worked for five years in the public-accounting field at Ernst

Nayyar is a Certified Public Accountant, Chartered Accountant and has a Bachelor of Commerce from the University of Delhi, India.

Nayyar serves as a director and audit-committee chairman of Penguin Solutions, Inc.

(formerly Smart Global Holdings, Inc.), a manufacturer of specialty memory solutions since his appointment in 2014.

He was the lead independent director from 2021 to 2022.

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

From September 1994 to June 1995, Mr.

Walker served as vice president of Reach Software Corporation, a software company.

From December 1993 to September 1994, Mr.

Walker served as president of Morgan Walker International, a consulting company.

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