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Power Integrations’ 2,200-Volt GaN Breakthrough — Can It Challenge Silicon Carbide?

Power Integrations reported its second-quarter revenue at $119 million, reflecting a 10% sequential increase and a 3% year-over-year rise. This growth was broadly supported across its four end-market categories: industrial, consumer, communications, and computer. Industrial revenue notably grew 16% year to date, driven by applications in home and building automation, power tools, and renewables. Consumer revenue improved seasonally, particularly in air conditioning, partially offsetting softness in major appliances, while communications and computer sectors rebounded from early-year lows. The company’s non-GAAP operating margin expanded substantially, rising over five percentage points to 17.1%, aided by improved product mix favoring higher-margin industrial sales, increased volume, and a favorable impact from currency fluctuations—the yen-dollar exchange rate contributing positively though with some expected volatility throughout the year. Operating expenses were managed efficiently, marginally lower than the previous quarter and below guidance, benefiting from restructuring efforts and spending discipline.