MONOLITHIC POWER SYSTEMS, INC. (MPWR)

Monolithic Power Systems, Inc. is a fabless global company, incorporated in 1997, that provides high-performance, semiconductor-based power electronics solutions. It combines deep system-level knowledge, semiconductor design expertise, and proprietary technologies in semiconductor processes, system integration, and packaging. The company focuses on high-performance analog and mixed-signal products, and says its solutions are more highly integrated, smaller, more energy-efficient, more accurate, and more reliable than many competing offerings. It had 4,501 employees at December 31, 2025, in Asia, Europe and the U.S.

Its key product families include DC to DC, AC to DC, driver MOSFET, power management IC, current limit switch, and lighting control products. DC to DC solutions convert and control voltages in systems such as servers, AI systems, memory, storage, notebooks, infotainment, home appliances, and network infrastructure. The products are designed for six end markets: storage and computing, enterprise data, automotive, communications, consumer, and industrial. Storage and computing was the largest end market in 2025, closely followed by enterprise data. Applications range from graphics cards and cloud servers to advanced driver assistance systems, optical modules, satellite communications, smart TVs, industrial meters, and security equipment. Research and development targets systems architecture, circuit design and implementation, and process and packaging technologies. As of December 31, 2025, the company had 2,231 patents and applications issued or pending, of which 654 were issued U.S. patents.

Sales are made mainly through third-party distributors and value-added resellers, supported by a technical sales and applications engineering effort that works directly with customers' engineers. In 2025, three distributors accounted for 26%, 18% and 10% of revenue. Sales to customers in Asia were 92% of revenue in 2025, 94% in 2024 and 87% in 2023. Sales are primarily billed in U.S. dollars and made under standard purchase orders, and supply chain lead times are generally 16 to 26 weeks.

The company uses third parties to manufacture, assemble and test its ICs. Unlike many fabless peers, it develops its own process and packaging technologies and works with foundry partners to install them on equipment in the partners' facilities. Wafers are made by several foundry suppliers in China, Taiwan, South Korea and Singapore. Wafer sort and final testing take place in China, Taiwan, Singapore, Malaysia and South Korea, and independent subcontractors assemble and package the products in China, Taiwan, Malaysia and South Korea. The company names its primary competitors as Analog Devices, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Power Integrations, Renesas Electronics, ROHM Semiconductor, Semtech, STMicroelectronics and Texas Instruments. It operates in the cyclical, highly competitive semiconductor industry and is subject to environmental, worker safety, and import/export regulations.