Allegro MicroSystems, Inc. (Allegro) operates as a global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (ICs) and application-specific power ICs, enabling the most important emerging technologies in the automotive and industrial markets.
With the broadest portfolio of magnetic sensor IC solutions available, underpinned by the company’s strong position in the automotive market, the company is the leading magnetic sensor supplier worldwide based on market sh...
Allegro MicroSystems, Inc. (Allegro) operates as a global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (ICs) and application-specific power ICs, enabling the most important emerging technologies in the automotive and industrial markets.
With the broadest portfolio of magnetic sensor IC solutions available, underpinned by the company’s strong position in the automotive market, the company is the leading magnetic sensor supplier worldwide based on market share. Its products are foundational to automotive and industrial electronic systems. The company's sensor ICs enable its customers to precisely measure motion, speed, position, and current, while its power ICs include high-temperature and high-voltage capable motor drivers, power management ICs, light-emitting diode (LED) driver ICs, and isolated gate drivers. The company’s technology expertise, combined with its deep applications knowledge and strong customer relationships, enable the company to develop solutions that provide more value to customers than typical ICs. Compared to a typical IC, its solutions are more integrated, intelligent and sophisticated for complex applications and easier for customers to use.
The company’s longstanding history of innovation in the semiconductor industry is built on its market leading magnetic sensor IC technology. The company’s ‘first of its kind’ approach took the complexity of magnetic systems design and embedded it within its solutions, dramatically simplifying customers’ design efforts while increasing system reliability. This is a pattern the company has repeated over consecutive generations of products, enabling it to establish a strong presence in the most rigorous and demanding automotive markets. The company's portfolio now includes more than 1,500 products, and the company ships approximately 1.5 billion units annually to more than 10,000 customers worldwide. By developing sophisticated, analog mixed-signal IC solutions that incorporate the company’s patented intellectual property and robust proprietary process technologies with its unique packaging know-how, the company is well-positioned to compete across all of its target markets and leverage its existing strengths in order to expand into new markets. The company’s established position as an incumbent supplier for the automotive market and its long product life cycles attest to the strength of this competitive advantage.
The company's value proposition is based on providing complete IC solutions for motion control and energy-efficient systems. This includes sensing angular or linear position, driving an electric motor or actuator, and regulating the power applied to sensing and driving circuits so they operate safely and efficiently. These capabilities are based on fundamental technical advances the company has made in the field of Hall-effect and magnetoresistive (xMR) sensors and Bipolar-CMOS-DMOS (BCD) power ICs. The company continues to be instrumental in developing magnetic transducers and power devices on silicon, application-optimized packaging, high-temperature operation, and high-speed precision signal paths for signal processing, safety, and reliability, all on 100-volt (100V) capable BCD wafer technology. The company also offers tunneling magnetoresistance (TMR) sensor solutions that provide the highest magnetic sensitivity, lowest power consumption, and the smallest size compared to other magnetic technologies. In Hybrid Electric Vehicles (HEV) and Electric Vehicles (EV) with ADAS, these innovations translate to increased driving range for EVs, smaller and more reliable power conversion systems, and improved safety and efficiency of on-board chargers, DC-DC converters, and battery management systems, as well as safer and more reliable steering and braking systems. The company's ICs can be found in seat and battery cooling applications in addition to motors, fans, and pumps in conventional and electric vehicles. In the industrial market, these technologies enable energy efficiency and improved performance in clean energy, server and data center, robotics, and automation applications. These innovations improve reliability to avoid factory downtime, accurately measure current to support increased energy efficiency or improved motor control and reduce the solution footprint to lower total system cost.
The company has maintained its sensor IC leadership and built its power IC business through successfully developing deep customer relationships over time. It commonly collaborates with customers early and over a multi-year period to design products capable of meeting demanding performance and quality requirements. Through this customer collaboration in product design, the company has unique insight into market trends and customer requirements for new, improved and innovative products.
The company's customer list includes virtually all of the world’s top automotive companies by market share and a large number of leading industrial companies. It is a preferred vendor to tier-one suppliers in the automotive industry that supply parts or systems directly to original equipment manufacturers (OEMs). The company is also a preferred partner or vendor to many global OEMs. Its products can be found in vehicles built by nearly every automotive OEM worldwide and in many common industrial systems. The company supports customers through design, application, and customer support centers located in North America, South America, Asia, and Europe. Its local teams in these centers work closely with customers on their unique design requirements, often acting as an extension of a customer’s development team.
The company's strategy to extend its market leadership in high-growth markets, increase its IC design footprint and capacity, and accelerate growth through enhanced sales operations relies on a fabless and asset-lite manufacturing model. It uses external wafer manufacturing consisting of both standard and proprietary processes, along with internal and external assembly and test capabilities to provide both flexibility and scale. Through its subcontractor manufacturers, the company is able to employ its proprietary wafer fabrication processes while leveraging its subcontractors’ manufacturing technologies and high-volume capacity. The company’s use of both internal and external assembly, as well as test capabilities, is designed to balance the protection of its proprietary technology and processes while achieving automotive quality manufacturing at scale.
Market
Within the global semiconductor industry, the company focuses on the magnetic sensor and power management IC markets.
E-Mobility
The company defines e-Mobility as the electrification of vehicles, HEVs and EVs powertrain, and the increasing adoption of advanced safety-related driver assistance systems, known as ADAS. Recently, the company is seeing increasing demand for its power products based on the company’s 100V process technology as a result of the transition to 48V electrical architectures in electric and hybrid electric vehicles.
The company is a leading provider of sensing and power solutions for vehicle electrification, building on its decades of experience in conventional powertrain efficiency and performance leadership in technologies that reduce emissions. The ability to improve efficiency is critical as OEMs strive to comply with emissions regulations and heightened customer awareness of the environmental impact of high emissions and the desire for extended driving range per charge.
As HEVs and EVs become a meaningful share of the automotive market, OEMs face challenges and opportunities to change system architectures to reduce complexities while achieving optimal energy efficiency and vehicle range. This presents several new opportunities for semiconductors, and the company expects its content per vehicle will continue to increase, driven by research and development innovation to serve this high-growth market.
As an expert in delivering ICs supporting efficient power conversion in HEVs and EVs, the company is uniquely positioned to support increased electrification, providing the critical automotive-grade components required to enable energy-efficient vehicles. This allows the company to take advantage of the significant semiconductor content increases expected to result from the HEV and EV migration and strong growth of electrified powertrains over the coming years.
TMR technology bolsters the company's current sensor and position sensor product portfolio and solidifies its leading magnetic sensing market position. TMR technology enables the highest magnetic sensitivity, lowest power consumption, and the smallest size compared to other magnetic technologies. The company’s TMR products, which it markets under the name XtremeSense, are an ideal fit for the electric powertrain, steering and braking systems in vehicles, which require higher accuracy, greater bandwidth and lower power consumption.
The company's high voltage power portfolio provides the company with additional content opportunities in both HEV and EV powertrains, high-efficiency data center power supplies, clean energy power conversion systems, and in motors throughout highly automated factories. This first-to-market technology, which integrates an isolated DC-DC converter and isolated gate drivers (IGD), is more efficient than competitive solutions that require two chips. This not only allows customers to reduce the size of their printed circuit boards (PCBs), but also enables the entire system, such as an on-board charger system, to shrink. The company continues to innovate this technology, which will enable gallium nitride (GaN) and silicon carbide (SiC) solutions for electric vehicle powertrains and high-efficiency industrial applications.
The company's devices play a key role in ADAS applications, reacting to system inputs to enable collision avoidance, lane keep assist, automatic emergency braking, and self-park features through automatic steering and braking. A steering system equipped with even a modest degree of automation utilizes products across the company's entire portfolio, including sensors, power management ICs, and motor driver ICs, which is indicative of the size of the company’s potential market opportunity as ADAS applications become increasingly more sophisticated.
Adoption of ADAS technologies continues to grow, and the company's solutions do not require waiting for widespread adoption of fully autonomous vehicles. The company already ships a significant volume of devices every year that enable ADAS capabilities in both EV and internal combustion engine (ICE) powertrains. Vehicles equipped with Level 1 ADAS feature sets (i.e., the capability to take control of one functionality) already use the Allegro devices. For years, the company has been at the forefront of enhancing safety features in ADAS applications, particularly steering and braking systems, through continuous innovation and close collaboration with automakers. Its proven record of supplying devices for safety applications and experience with supporting ADAS features in high-end vehicles, combined with the growing adoption of ADAS from luxury vehicles to mainstream and economy vehicles, positions the company to capitalize on this rapidly expanding market opportunity.
Traditional Automotive Applications
ICE will continue to exist in some form for the foreseeable future, either in pure ICE vehicles or HEVs. OEMs continue to improve their fuel efficiency and look to the company to help create the most efficient ICE powertrains possible. The company has decades of experience as a proven supplier in ICE powertrains to support fuel efficiency.
The company’s safety, comfort and convenience business, commonly referred to as body electronics, will continue to evolve with vehicle electrification, which leads to more content opportunities. Systems that historically relied on engine temperature or mechanical energy are now electrifying, and new system technologies are being rolled out. New systems increase the number of fans, pumps and motors in vehicles, thereby increasing the company’s content opportunity. The company also enables safer and more energy efficient lighting and infotainment systems as it develops more advanced products and innovate with its customers.
Clean Energy and Cloud Computing
The company's automotive-first philosophy resonates with its industrial customers, who appreciate its rigorous quality standards, devices designed to withstand extreme environments, and its long product lifecycle of 10 years or more. These customers are in the company's target markets of clean energy and cloud computing, defined as renewable energy generation, storage, and distribution, EV charging infrastructure, plus data center cooling systems and power supplies.
The company offers one of the largest portfolios of current sensors on the market, including those with integrated components, requiring less board space. Its lossless current sensor ICs are used to improve efficiency in power conversion systems and power supplies. As the industry transitions to 48V power architectures in the data center market, the company's sensors and power ICs are being adopted to further improve energy efficiency enabled by this wafer process technology. In addition, the company expects its GaN and SiC-based IGD technology to have a strong presence in these power conversion systems, utilizing a single, small-footprint package to significantly reduce system complexity while increasing efficiency.
The company's motor drivers continue to be used in data center cooling applications, mainly for thermal efficiency, as these products reduce complexity and design time while also reducing the energy consumption required to cool servers. With the advent of generative artificial intelligence, the company anticipates continued growth for its motor drivers in systems for air and liquid cooling of server components.
Automation
With the growing adoption of factory automation, there is increasing demand for precise motion control and energy-efficient technologies, presenting additional meaningful growth opportunities for the company. Robotics is an area of high market growth through increased adoption of warehouse robots, assembly robots, collaborative robots, cleaning robots, and humanoid robots. Customers already leverage the company's technology leadership in solutions optimized for high-accuracy, high-voltage, and high-reliability conditions, allowing the company to expand its presence in these markets. Many of these applications require the same safety and accuracy specifications that the company has designed into its automotive-first devices. In particular, the company has the potential to leverage synergies between its power and sensor solutions, including motor drivers, voltage regulators, and current, position and speed sensors, in under-penetrated opportunities within industrial automation.
Broad Industrial
The Broad Industrial market includes the company's personal mobility, or two-wheeler market, and a broad variety of other use cases from heavy equipment to telecom connectivity. The company’s two-wheeler business is seeing similar electrification trends as larger vehicles. The company's solutions are proven in electrified powertrains and in the small form factors needed for these applications. These markets are looking for many of the same device specifications that the company's automotive customers use, from high voltage and high temperature performance, long life cycles, small form factors, integration, and unique packaging. The company's automotive quality standards result in solutions that provide robust, high performance over long lifecycles, garnering trust from its industrial customers.
Consumer Markets
The consumer markets include smart home applications, gaming, personal medical devices and consumer electronics. The company’s devices enable its customers in these markets to manufacture more robust and more energy-efficient products with extended battery life.
Market Opportunity
Within the company’s target markets, a key element of its growth strategy is to increase the company’s revenue through portfolio and customer expansion. The company is a market share leader in the magnetic sensor IC market. Recently the company introduced new position sensor ICs and quickly ramped up revenue in motion control applications, particularly in the ADAS market. These position sensors, especially angle sensors, are also used in robotic motion control systems, extending the synergy to industrial applications. The company’s industry’s highest bandwidth current sensors are a core component in many automotive and industrial applications alike for current monitoring and efficient power conversion.
The company is also leveraging its power IC products to increase its total content within automotive and industrial applications. Designing power products specifically for ADAS and data center is part of the company’s strategy to focus on megatrends of electrification, safety, and energy efficiency. There is more opportunity for the company to expand its offerings, as electrified vehicles will require more motors to run pumps and fans and as data center architecture continues to evolve to incorporate more fans, higher power fans, and advanced liquid cooling solutions.
The company’s latest opportunity to expand its market presence is with both its IGDs and the company’s XtremeSense TMR technology. IGD solutions have applications in power conversion in EVs, such as on-board chargers and traction inverters, as well as in clean energy systems. The company’s XtremeSense TMR products have applications beyond its traditional markets, for example in continuous glucose monitoring within the personal medical market.
Served Available Market (SAM)
Another focus of the company's growth strategy is to significantly expand it served available market by using its established position in high-value automotive and industrial applications to increase its content per system.
Part of the company's served available market expansion is through acquisitions that open new sockets and new applications to it.
With the growth of semiconductor content opportunities related to EV and ADAS penetration already accelerating, the company has seen significant increases in its electronic system content per vehicle. For example:
The company's opportunity for vehicles adopting ADAS features is expected to grow as the adoption moves from high-end vehicles to mid- and lower-range vehicles. An additional benefit from ADAS is the increase in content opportunity per system as new architectures are adopted.
According to the company's internal estimates and third-party sources. The content opportunity in EV and plug-in EV is 2.5 times the content in a typical ICE vehicle.
There is a similar dynamic in the industrial market, where clean energy and automation are two mega trends requiring more semiconductor content as they gain mainstream adoption. The company's current sensors, motor drivers, position sensors, and IGDs’ performance and reliability make them uniquely capable of delivering on customer expectations for both energy efficiency and motion control.
The robotics market is rapidly transforming and presents a new potential growth opportunity for both the company's sensor and power ICs. Joints in robotic arms could include several of the company's leading products, most commonly motor drivers to actuate the joint, and sensors for position feedback and optimized motor control. As more advanced robots are adopted at scale, the served available market (SAM) expansion opportunity for the company could be significant.
Strategy
The company's strategy is to provide differentiated IC solutions for its customers, innovate with purpose to build on its leadership in key markets, and expand its presence to become the global leader in semiconductor power and sensing solutions for motion control and energy-efficient systems in automotive and industrial applications.
The key elements of the company's strategy are to invest in research and development that is market-aligned and focused on targeted portfolio expansion; emphasize its automotive 'first' philosophy to align its product development with the most rigorous applications and safety standards; invest to lead in chosen markets and apply its intellectual property and technology to pursue adjacent growth markets; expand its sales channels and enhance its sales operations and customer relationships; improve its gross margins through product innovation; selectively pursue acquisitions and other strategic transactions; and maintain sustainability efforts.
Products and Solutions
The company’s product portfolio includes over 1,500 products across a range of high-performance analog mixed-signal semiconductors.
The company applies its deep technology know-how to deliver magnetic sensing IC and power IC solutions to:
Sense speed, position, and current to enable electric powertrains, improve ICE vehicle fuel efficiency and meet customer demands for lower CO2 emissions, enable safer cars through ADAS safety features, and enhance factory automation and clean energy systems;
Regulate systems to improve safety and power efficiency and ultimately reduce solution size; and
Drive motors through its advanced, proprietary algorithms that provide industry-leading reliability and energy efficiency, with minimal audible noise and vibration.
Magnetic Sensor ICs
The company offers the industry’s leading portfolio of integrated magnetic sensor ICs. The company’s solutions are based on its monolithic Hall-effect, GMR and TMR technologies that allow customers to develop contactless sensor solutions that reduce mechanical wear and provide greater measurement accuracy and system control. The company’s portfolio of magnetic sensor ICs includes the following:
Current Sensor ICs: Current sensor ICs provide output signals proportional to the overall strength of a magnetic field created by a current carrying conductor. The company has developed a broad portfolio of current sensors to meet multiple voltage, and application needs for its customers. Current sensor ICs are used to improve energy efficiency in a broad range of applications, including on-board chargers, DC-DC converters, inverters, industrial motors, solar inverters, robotics, data center power supplies and EV charging infrastructure.
Position Sensor ICs: Position sensor ICs provide an analog or digital voltage output that measures the intensity of a magnetic field, thereby establishing a precise position. In automotive applications, the company’s position sensor ICs are used to improve safety applications, such as ADAS power steering and braking systems, certain EV powertrain systems such as the shaft position of a traction motor and ICE powertrain systems, such as clutch and pedal position in advanced transmissions. The company’s TMR angle sensor ICs offer high resolution position feedback, and the safety diagnostics required for adoption in advanced ADAS motor position applications.
Speed Sensor ICs: Speed sensor ICs detect and process the magnetic fields created by a rotating gear tooth or ring magnet with the output being a digital reading proportional to speed and direction. These sensor ICs are used in camshaft/crankshaft and transmission systems and employ proprietary algorithms for high accuracy, leading to reduced CO2 emissions and improved fuel economy of combustion engines. Additionally, xMR wheel speed sensors play an important role in increasing the safety of ADAS braking systems.
Power ICs
The company's power IC portfolio includes high-temperature and high-voltage capable motor driver ICs, DC-DC voltage regulators, safety power management ICs, LED driver ICs, and high-voltage IGDs. These power ICs allow the company's customers to design safer, smaller, and more power-efficient systems. The company employs embedded algorithms that simplify system-level design, reduce audible noise, and increase start-up reliability in brushless DC (BLDC) motors and fans. The company's portfolio of power ICs includes the following:
Motor Driver ICs: Motor driver ICs contain the power drivers and the sequencing logic to drive the coils of a variety of motors. The company's motor driver ICs utilize embedded algorithms to improve energy efficiency and motion control in HEV and EV systems, automotive fans and pumps, data center cooling fans, robotics, automation, and home appliances.
Regulators, Power Management ICs, and LED Driver ICs: As the industry transitions to more highly integrated products, the company's portfolio of regulator ICs and power management ICs (PMICs) is used extensively in advanced ADAS and powertrain systems. The company's LED driver ICs and modules are used in smart lighting systems to improve system safety, efficiency, and size.
Isolated Gate Drivers: These devices combine isolated DC-DC and IGDs into a single package. They are designed to complement GaN and SiC switches in high-efficiency power conversion systems. The company's IGDs enable applications that are smaller and more efficient than competing solutions, helping to shrink PCBs and reduce total system size in clean energy, data centers, and electrified powertrains.
Sales, Marketing and Customer Support
The company sells its products worldwide through multiple sales channels, including its direct sales force and distributors and independent sales representatives, who resell its products to numerous end customers. The company has a geographically diverse mix of sales. Its net sales made to distributors were approximately 50.7% of its net sales in fiscal year 2025.
The company's direct sales force and applications engineers provide its customers with specialized technical support. The company provides ongoing technical training to its distributors and sales representatives to keep them informed of its existing and new products.
The company maintains an internal marketing organization that is responsible for increasing its brand awareness and promoting its products to prospective customers. This includes the creative management of its website, market research and analytics, and the development of demand generation strategies and materials, such as product announcements, press releases, brochures, training, and videos as well as securing thought leadership through published technical and trend articles and advertisements, and active engagement in key industry events.
Customers
The company sells its products to major global OEMs and their key suppliers, primarily in the automotive and industrial markets. It sold to more than 10,000 end customers, directly and through distributors, during fiscal year 2025. Approximately half of its net sales during fiscal year 2025 were derived from sales to its top 20 customers, which include distributors.
Competition
The company’s primary magnetic sensor and power IC competitors are other semiconductor designers and manufacturers, such as Analog Devices, Infineon, Melexis, Monolithic Power Systems, TDK Micronas, and Texas Instruments.
Seasonality
The company's business exhibits some seasonality. Historically, the company's net sales have generally been higher in the second half of the fiscal year (year ended March 28 12025) than in the first half.
Intellectual Property
As of March 28, 2025, the company owned 1,942 active patents, including 966 U.S. patents (with expiration dates between 2025 and 2043), with an additional 487 pending patent applications, including 252 U.S. patent applications.
Th company markets its products worldwide under the ‘Allegro’ name.
Environmental and Occupational Health and Safety Regulation
The company’s AMPI Facility is certified to ISO 14001 for environmental management systems and ISO 45001 for occupational health and safety management systems.
The company faces increasing complexity in its product design and procurement operations due to the evolving nature of environmental laws, regulations directives, and standards, as well as specific customer requirements. These laws, regulations, directives, and standards have an impact on the material composition of the company's products entering specific markets. For example, the European Union (EU) adopted its Restriction of Hazardous Substance Directive (RoHS) legislation, EU Directive 2002/95/EC (RoHS) and 2011/65/EU (RoHS II), amended by 2015/863/EU which took effect in July 2019. The EU also adopted the European Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) in 2007, which calls for the progressive substitution of dangerous chemicals in manufacturing.
Suppliers
The company relies on a limited number of third-party wafer fabrication facilities for the fabrication of semiconductor wafers used in the manufacture of its IC products, primarily United Microelectronics Corporation (‘UMC’), Polar Semiconductor, LLC (‘PSL’), Tower Semiconductor Ltd. (‘Tower’) and Taiwan Semiconductor Manufacturing Company (‘TSMC’). The company purchases a number of key materials and components used in the manufacture of its products from single or limited sources. The company depends on these foundries and other sources to meet its production needs.
History
Allegro MicroSystems, Inc. was founded in 1990. The company was incorporated in 2013.
