Power Integrations Inc. Shareholders: Ownership Structure, Brands, and Acquisition History
Last updated: Oct-2026Ownership Structure
Ownership Analysis
Two fund families own 29.4% of Power Integrations. BlackRock holds about 15.6% and the Vanguard units about 13.8%, adding up to 16.4 million shares, and both mainly buy to match market indexes. Insiders hold only about 1.50%, worth close to $46 million at $54.46 a share. We think that mix has a clear result: nobody who owns the company is in a position to direct it, so the board carries the whole burden of oversight. A fund that tracks an index rarely sells because of a bad quarter, so the share price falls further before anyone acts.That makes the recent changes more important. Balu Balakrishnan led the company from 2002 to July 2025, stayed as executive chairman until February 2026 and left the board in June. His remaining 576,256 shares are worth about $31 million, or close to 1.0% of the company. We would not call that a controlling stake, and he never held one. His departure removes the last executive with a direct personal stake of that size.We see two consequences. First, an activist investor would find an easy opening: the stock fell about 35% from $83.41 in June to $54.46, and short interest is about 10.65% by one data provider. Short interest means shares sold by investors betting on a fall, which signals doubt. Second, the 2026 shareholder proposal for an independent chairman shows holders are already asking governance questions, even though the board opposed it.Our judgment is that Power Integrations is a company where governance will be tested before strategy is. Our reasoning is simple: with no large insider, the first sign of trouble becomes a public argument about the board rather than a private talk with an owner. The index funds will not push for change, but Wellington at 6.4% and the other active managers might. We would watch whether new chair Balakrishnan Iyer and Jennifer Lloyd keep cash returns and spending in balance, because holders who bought close to $83 have a loss to recover.
Direct Owners
Institutional Shareholders
Shareholder Analysis
Who decides what Power Integrations does with its cash, and are they spending it wisely? In 2025 the company paid $47.2 million in dividends and $98.1 million for buybacks, a total of $145.3 million. That equals about 4.8% of today's $3.04 billion market value, but it is $33.8 million more than the $111.5 million that operations produced. We note the gap was covered by cash and securities, which stood at $249.5 million at year end.The buyback looks poorly timed. The company bought about 1.5 million shares, an average of roughly $65 each. At $54.46 those shares are worth about $82 million, so by our math the program is down about $16 million. Management has made no repurchases in the first half of 2026, and we think that restraint is sensible.The dividend raises a different question. At $0.215 a quarter, or $0.86 a year, it costs about $48 million. That is 2.1 times the $22.1 million of 2025 net income under standard accounting rules. Against the company's adjusted earnings of $1.25 a share, which exclude items such as stock pay, the payout is 69%. We read the dividend as affordable only on the adjusted figure, and as a promise management would rather not cut.Our conclusion is that the dividend can continue while earnings recover, because cash is $70.6 million plus securities and operating cash flow was $22.0 million in the second quarter of 2026. We would not want buybacks to restart above roughly $55 a share until profit recovers, and we believe holders should press for that. The 2.4% dividend raise suggests management agrees on priorities. Put simply, we rank the dividend ahead of buybacks, because a dividend cut would hurt holders more than a pause in repurchases.
Brands, Subsidiaries & Companies Owned
| Name | Type | Description |
|---|---|---|
| PowiGaN | Brand | Gallium nitride high-voltage switch technology introduced in 2019 whose products grew more than 40% in 2025 |
| InnoSwitch | Brand | Offline power conversion switcher integrated circuits for chargers and appliances |
| HiperPFS | Brand | Power factor correction controller chips for higher-power supplies |
| BridgeSwitch | Brand | Motor driver integrated circuits for appliances and industrial drives |
| SCALE gate drivers | Brand | Isolated gate drivers for high-power modules that came with the Concept purchase |
| CT-Concept Technologie | Division | Swiss gate driver business bought in 2012 for about $115M |
| Vertical GaN team | Division | Engineers and equipment from the Odyssey Semiconductor assets bought in 2024 |
| Qspeed | Division | Silicon diode technology bought in 2011 |
Portfolio Analysis
Industrial and consumer products each bring in about the same sales for Power Integrations. Industrial was 38% of 2025 revenue and consumer 37%, or about $168 million and $164 million of the $443.5 million total. Computer chips brought in 13%, about $58 million, and communications 12%, about $53 million. We see industrial as the stronger engine: the company cited record gate-driver sales, plus metering, power tools and automotive demand.The PowiGaN line is the brand to watch. It uses gallium nitride, a material that wastes less energy than silicon at high voltage, and it was introduced in 2019. The company says PowiGaN sales grew more than 40% in 2025, but it does not report a dollar figure, so we cannot measure its share of revenue. We treat that as a gap in disclosure rather than a weakness, and we would ask management to publish the number so investors can judge the 40% growth against a base.Distribution adds risk. Two distributors each exceeded 10% of revenue, and 98% of sales were to customers outside the United States. That puts a lot of revenue in the hands of a few middlemen and in markets exposed to trade policy. In the second quarter of 2026 the chief executive named renewable energy, grid equipment and artificial intelligence data centers as demand sources, which suggests industrial is widening.Our view is that the mix is better than it was but still slow growing. Revenue rose just 5.8%, from $419.0 million to $443.5 million, and net income fell from $32.2 million to $22.1 million. We expect the brand portfolio to help most if gallium nitride moves into higher-power uses where silicon carbide competes today, and the second quarter's $118.9 million, up 3% from a year earlier, is a modest first sign of that. We also note the first quarter was about $108 million by our calculation, so sales rose roughly 10% from one quarter to the next.
Market Share & Competitors
| Company | Market Share | Revenue | Key Strength |
|---|---|---|---|
| Power Integrations ★ | N/A | $443.5M FY2025 | High-voltage power conversion chips with PowiGaN |
| Texas Instruments | N/A | $17.68B FY2025 | Scale and own 300mm analog factories |
| STMicroelectronics | N/A | $11.80B FY2025 | Broad silicon carbide and GaN power range |
| onsemi | N/A | $6.00B FY2025 | Power and sensing chips for autos and industry |
| Navitas Semiconductor | N/A | $45.9M FY2025 | Pure play GaN and silicon carbide power chips |
Competitive Analysis
Texas Instruments is close to 40 times larger than Power Integrations. Its 2025 revenue was $17.68 billion, against $443.5 million. STMicroelectronics reported $11.80 billion and onsemi $6.00 billion, which is about 27 and 14 times larger. Navitas Semiconductor, the closest pure gallium nitride rival, is the only smaller company, at $45.9 million, roughly a tenth of our subject.Growth tells a different story from size. Power Integrations grew 5.8% in 2025, while STMicroelectronics fell 11.1%, onsemi 15% and Navitas 45%, from $83.3 million to $45.9 million. Texas Instruments rose 13%, from $15.64 billion to $17.68 billion. We conclude the company did better than most peers in a weak year, though Texas Instruments is clearly better.The patent fights in gallium nitride involve others. In our research, Innoscience's disputes are with Infineon and Efficient Power Conversion, not Power Integrations, and we found no case involving this company. We therefore do not model any legal cost or gain, and we would revisit that if a case appears.Margins show the company's edge. Management guided a non-GAAP gross margin of 54% to 55% for the third quarter of 2026, and revenue of $122 million to $130 million, up from $118.9 million in the second quarter. We think that is a healthy figure for a company without its own wafer factories, since it relies on Lapis, Epson and X-FAB.Our position is that Power Integrations can compete by being specialized, not by being big. Its risk is that larger rivals such as Texas Instruments and STMicroelectronics can bundle gallium nitride with other products. We would watch whether growth stays above peers through the second half of 2026. The third-quarter guide implies growth if met, and onsemi said at the end of 2025 that its markets were showing signs of stabilization, so the comparison may tighten.
Acquisitions
| Company Acquired | Deal Value | Year | Description |
|---|---|---|---|
| CT-Concept Technologie AG | $115.0M | 2012 | Swiss maker of gate drivers for high-power insulated gate bipolar transistor modules |
| Odyssey Semiconductor assets | $9.52M | 2024 | Vertical gallium nitride transistor technology and team of engineers |
| Qspeed Semiconductor | $7.0M | 2011 | Silicon diode products and technology |
| Cambridge Semiconductor Limited | undisclosed | 2015 | United Kingdom designer of power conversion integrated circuits |
Acquisitions Analysis
Add up every price Power Integrations has disclosed and the total is $131.5 million. That covers $115.0 million for CT-Concept in 2012, $7.0 million for Qspeed in 2011 and $9.52 million for Odyssey Semiconductor's assets in 2024. Cambridge Semiconductor in 2015 had no disclosed price. By our math the total equals roughly 30% of one year's revenue, spread across 13 years, which is a very light acquisition record for a chip company, and we like it.Concept was the one real bet, at 87% of the disclosed total. It brought Swiss gate drivers, the chips that switch large power modules on and off, and those products now sell under the SCALE name. We think it widened the company from small power supplies into industrial equipment, which fits the industrial segment's 38% share of 2025 revenue.Odyssey is a small purchase with a large ambition. The company allocated $4.93 million of the $9.52 million price to unfinished research, $3.42 million to goodwill and $1.17 million to equipment. In plain terms, 52% of the price paid for ideas not yet in products. It was announced on May 7, 2024 and closed in July, and the goal is vertical gallium nitride at a cost that matches silicon switches.Our conclusion is that management buys technology and teams, not revenue. We approve of the discipline, since the whole Odyssey deal was about 2.1% of 2025 revenue. But we also note that the company holds $249.5 million in cash and securities and has not used it for a large deal in 14 years. We would want proof within two years that Odyssey's technology reached a product. If it has not, we would treat the $9.52 million as a small loss and ask management to say so plainly.
Acquisition Timeline
Merger & Spin-off History
Merger & Spin-off Analysis
We found no merger, spinoff or takeover offer for Power Integrations itself. The record is four small purchases in 13 years: Qspeed in 2011, CT-Concept in 2012, Cambridge Semiconductor in 2015 and Odyssey's assets in 2024. The gaps between them were one year, three years and nine years, which we read as a sign management waits for a specific technology gap before buying.The company has also made no disposals that we could find, so it keeps what it buys. We think that matters because Concept's gate drivers and Odyssey's gallium nitride team remain part of the core product plan, not side businesses to be sold if growth stalls.Takeover arithmetic is worth doing, even without evidence of a bid. At $54.46 and 55.87 million shares the company is worth $3.04 billion. A 30% premium would be about $3.95 billion, which is a manageable sum for a large analog chip maker such as Texas Instruments or STMicroelectronics. The share price has ranged from $30.86 to $91.18 in a year, so a buyer could argue the price is volatile and cheap relative to the June high of $83.41.We caution against reading that as a prediction. Two things make a deal harder: index funds would likely accept a fair premium, but a newly appointed chair and chief executive may want time to show results first. Our view is that the next transaction is more likely to be another small technology purchase, perhaps in gallium nitride, than a sale of the company. Anything beyond that would need a long run of weak results to justify it, and the second-quarter revenue of $118.9 million, up 3%, does not point that way.
Ownership History
Ownership History Analysis
On July 21, 2025, Jennifer Lloyd replaced Balu Balakrishnan as chief executive, ending a leadership run that began in 2002 when he joined the board. That is 23 years, in a company incorporated in California on March 25, 1988 and reincorporated in Delaware in December 1997. We think the handover is the biggest ownership event in its recent history.Lloyd brings 28 years from Analog Devices, a larger chip company, and owned 2,825 shares outright in April 2026, which is tiny. Balakrishnan stayed as executive chairman until February 2026 and held 576,256 shares through a trust. We would say the company is now run by a professional manager with almost no personal stake, which makes pay and performance targets central.Since the handover, results are mixed. Revenue rose 5.8% in 2025 to $443.5 million, but net income fell 31% to $22.1 million, and in 2026 the company announced a 7% staff cut. That is roughly 60 of 877 jobs, at a charge of $3.5 million to $4.0 million, or about $57,000 to $65,000 per job by our math. A cut of that size so soon after a new chief executive arrived tells us she wants a lower cost base before growth returns.The ownership picture has also moved. Index and asset managers now own the large blocks, with BlackRock at about 15.6% and the Vanguard units at 13.8%, while insiders hold only about 1.50%. We read that as a company with no anchor holder, one that depends on the quality of the board.Our conclusion is that the first full year under Lloyd will define whether the 2025 handover was orderly or just quiet. We would judge it by the third-quarter revenue guide of $122 million to $130 million and by how directors handle cash returns.
Ownership Explained
Power Integrations Inc. designs high-voltage chips that control how electricity is converted in chargers, appliances, industrial equipment and data centers. Its headquarters is at 5245 Hellyer Avenue in San Jose, California. The company was incorporated in California on March 25, 1988, reincorporated in Delaware in December 1997, and trades on the Nasdaq Global Select Market as POWI. No person or group controls it. About 55.87 million shares are outstanding, and at $54.46 on October 2, 2026 they were worth about $3.04 billion.The largest holders are asset managers. Based on their June 30, 2026 filings, which large investors must make each quarter, BlackRock held 8,722,053 shares. Two Vanguard units, Portfolio Management with 5,190,284 shares and Capital Management with 2,511,196, together held 7,701,480. Wellington Management held 3,595,855 and State Street 3,194,155. Divided by shares outstanding, those stakes are about 15.6%, 13.8%, 6.4% and 5.7%. Directors and officers together hold about 1.50% according to a data aggregator.Jennifer Lloyd, who spent 28 years at Analog Devices, became president and chief executive on July 21, 2025. Balu Balakrishnan, a director since 2002 and chief executive until July 2025, served as executive chairman until February 2026 and retired from the board at the June 3, 2026 annual meeting. Balakrishnan S. Iyer became chair in February 2026, and the board shrank from nine to seven members. In February 2026 Balakrishnan held 576,256 shares through a trust, about 1.0% of the company, after selling 11,363 shares at $46.82 to pay taxes.At December 31, 2025 the company employed 877 full-time people in 15 countries. Two distributors each accounted for more than 10% of 2025 revenue. Three outside factories, Lapis, Epson and X-FAB, make most of its silicon wafers.In 2025 the company returned $145 million to shareholders, $47.2 million as dividends and $98.1 million to buy back about 1.5 million shares. The quarterly dividend rose 2.4% to $0.215 a share in the first quarter of 2026. No shares were repurchased in the first half of 2026.
A customer buying Power Integrations chips deals with a company that no single investor or parent can direct. Revenue was $443.5 million in 2025, and 98% of it came from customers outside the United States, mostly through distributors. Two distributors each made up more than 10% of sales, so the people who ship its parts to appliance, charger and meter makers matter as much as the end brands. Product roadmaps are set by management, not by a corporate owner with other priorities.Employees work for a company of 877 people that is in the middle of a leadership handover. Jennifer Lloyd took over as chief executive in July 2025, and the long-serving former chief executive, Balu Balakrishnan, left the board in June 2026. The company announced a 7% workforce reduction with a $3.5 million to $4.0 million restructuring charge in the first quarter of 2026, which at 877 people means roughly 60 jobs. The stock also fell from $83.41 in June 2026 to $54.46 in early October.Investors own a stock held mostly by index and professional asset managers, with insiders at about 1.50%. The company pays a quarterly dividend of $0.215, a yield of about 1.6% at the current price. In 2025 its dividends and buybacks together came to $145 million, more than the $111.5 million of cash its operations produced.Because insiders own so little, shareholders rely on the board and a newly appointed chair to supervise management. A shareholder proposal for an independent chairman was on the 2026 ballot, and the board recommended voting against it. For the stock, quarterly results matter more than any owner's strategy, as shown by a share price that has ranged from $30.86 to $91.18 in a year.