Vishay Intertechnology Announces Major Restructuring

Vishay Intertechnology, Inc. has announced that it is undertaking restructuring measures to enhance its manufacturing operations and streamline business decision-making as part of its growth strategy, Vishay 3.0.

The restructuring will take place in phases and include the following actions:

– The company will begin streamlining its selling, general, and administrative (SG&A) functions immediately and continue through the fourth quarter of 2025. This will lead to severance payments for approximately 170 employees, representing about 6% of the SG&A workforce.

– Three manufacturing facilities are set to close. A back-end facility in Shanghai, China, within the Diodes segment, is expected to shut down by the end of 2026, with production transfers starting in the fourth quarter of 2025. Additionally, there will be closures of two smaller facilities in the Resistors segment located in Fichtelberg, Germany, and Milwaukee, Wisconsin, also targeted for closure in 2026. The closures will result in a direct labor reduction of approximately 365 employees, or 2% of the total manufacturing labor force.

– There will be various changes to manufacturing operations and production transfers, resulting in severance payments for approximately 260 employees.

The company expects to incur pre-tax cash charges of around $38 to $42 million, primarily connected to severance costs, mainly occurring in the third quarter of 2024. Once fully implemented by the end of 2026, Vishay anticipates achieving annualized cost savings of at least $23 million, with around $12 million expected to come from SG&A expenses. The company foresees immediate annualized cost savings of approximately $9 million and approximately $12 million beginning in the first quarter of 2025.

Joel Smejkal, President and Chief Executive Officer of Vishay, stated, “As we implement Vishay 3.0, we are focused on reshaping the company and gearing up for our next growth phase. We continuously seek opportunities to enhance our decision-making process, prioritize our customers, and improve cost efficiencies. These restructuring actions aim to remove execution barriers and foster a heightened sense of urgency. We are taking our initial steps toward optimizing our global manufacturing footprint by closing smaller single product line facilities and advancing toward multi-product line campus manufacturing structures. Collectively, these measures will support our five-year growth strategy to accelerate revenue growth, expand profitability, and drive higher returns.”

The company’s estimates regarding costs related to its cost reduction initiatives and anticipated annual savings are preliminary and may change as the restructuring progresses.

Vishay manufactures an extensive range of discrete semiconductors and passive electronic components that are essential for innovative designs across various sectors, including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets.

### Forward-Looking Statements

Statements related to the company’s future performance and operations, including costs associated with its cost reduction initiatives and anticipated savings, are considered forward-looking statements. These statements rely on current expectations and are subject to risks, uncertainties, and assumptions that may impact actual results. Factors that could lead to material differences include economic conditions, manufacturing disruptions, changes in customer demand, competition, and regulatory changes. The company does not undertake any obligation to update or revise these forward-looking statements.