NASDAQ: ALGM

Secular technology trends, including electrification, automation, AI data center expansion, and increasing energy efficiency, are driving growing demand for precision sensing and power solutions. In automotive markets, these trends are accelerating the adoption of electrified powertrains and safety-critical Advanced Driver Assistance Systems (“ADAS”), such as steering and braking systems. In industrial markets, these trends are driving greater power density, and increasing requirements for automation and thermal efficiency across AI data centers, robotics, and energy infrastructure. We believe these trends favor our differentiated sensing and power technologies and support sustained demand for our solutions.

Our technology leadership is built on decades of innovation across both magnetic sensor and power ICs. We develop highly differentiated solutions by combining proprietary circuit technologies, application-optimized packaging, and deep system-level expertise, supported by unique and proprietary wafer process technologies. Our specialized capabilities include high-temperature operation, high-speed and high-precision signal processing, and compliance with stringent automotive safety and reliability standards. These capabilities are enabled by our 120-volt (“120V”) capable Bipolar-CMOS-DMOS (“BCD”) wafer process technology, which integrates bipolar, complementary metal-oxide semiconductor (“CMOS”), and double-diffused metal-oxide semiconductor (“DMOS”) transistors on a single chip. This BCD wafer technology supports both sensing and power products and scales across multiple end markets.

This common technology foundation has enabled us to apply a consistent design and innovation blueprint across successive generations of products, establishing a strong competitive position in demanding automotive and industrial applications.

Within magnetic sensing, we offer the industry’s broadest portfolio of sensor ICs, spanning Hall-effect, giant magnetoresistive (“GMR”), and tunneling magnetoresistive (“TMR”) sensor technologies (together, “xMR”). We pioneered a systems-level approach that integrates value-added packaging elements, such as current-carrying conductors, magnets, and discrete components, along with precision analog circuits, intelligent digital logic, and calibration to develop specialized sensor ICs. This integration enables market-leading sensor ICs optimized for high-growth applications. We are among a limited number of semiconductor companies offering monolithic and high temperature rated TMR-based solutions, which provide higher sensitivity, low power consumption, and compact form factors. TMR is becoming a foundational element of our innovation strategy. An increasing percentage of new product development is focused on using TMR sensors to improve the performance or efficiency of hybrid electric vehicles (“HEV”s) and battery electric vehicles (“BEV”s) (together, “xEV”s), ADAS systems, and advanced robots.

In power ICs, we offer a comprehensive portfolio of high-performance solutions, including motor drivers, voltage regulators, isolated gate drivers (“IGD”), and power management ICs (“PMIC”s), built on our proprietary BCD process technology. We leverage a systems-level approach that integrates high-voltage power transistors with precision analog circuits, intelligent digital logic and control algorithms, and advanced power packaging, such as integrated capacitors and thermally enhanced leadframes, to develop specialized power solutions. This monolithic integration enables us to deliver market-leading efficiency, superior thermal performance, and high-temperature capability in compact form factors. We are a leader in high-voltage and high-current power ICs that incorporate embedded control algorithms to eliminate customer code development and reduce audible noise. Our power innovation strategy is increasingly

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focused on high-growth applications, where our integrated solutions improve power density and reliability in automotive, energy infrastructure, and industrial robotics.

We maintain our market leadership through deep, long-standing customer relationships, often collaborating early in the design cycle to address demanding performance, quality, and safety requirements. Our customer base includes virtually all major global automotive manufacturers, leading tier-one automotive suppliers, and a growing number of data center, automation, and robotics customers worldwide. We support customers through a global network of design, applications, and customer support centers across North America, South America, Asia, and Europe.

Our fabless, asset-light manufacturing model supports scalability, flexibility, and access to advanced manufacturing technologies to extend our market leadership. We design proprietary wafer technologies and then transfer and industrialize these technologies with external wafer fabrication partners around the globe. We also utilize a robust and scalable combination of internal and external assembly and test capabilities. To enhance regional agility and supply chain resilience, we are expanding regional supply chain capabilities, including localized manufacturing partnerships in multiple geographies, to support local customer demand and enhance overall supply chain resilience. We also maintain manufacturing relationships with Polar Semiconductor, LLC (“Polar”) in North America and various internal and external assembly and test partners across Asia to provide customers with flexibility in supply chain configurations. We believe this manufacturing strategy positions us to support long product life cycles, meet automotive-grade quality requirements, and scale efficiently across both automotive and industrial markets.

Our Market

Within the global semiconductor industry, we focus on the magnetic sensor and power IC markets, serving higher growth applications, primarily in automotive and industrial markets, including advanced industrial markets such as AI data centers, robotics, and energy infrastructure.

Automotive Focus Applications: xEV Powertrain and ADAS

We focus on vehicle electrification and automation, including xEV powertrains and the expanding adoption of ADAS. These trends are driving increased semiconductor content per vehicle and higher demand for both sensing and power solutions. The transition to electrified powertrains and 48V electrical architectures is increasing demand for our sensor and power products built on our proprietary 120V BCD process technology. Our 120V BCD-based solutions consolidate power management and protection, reducing component count and improving overall system reliability.

We are a leading provider of sensing and power solutions for vehicle electrification, building on decades of experience in powertrain efficiency and performance in conventional vehicles. Improving efficiency is critical as original equipment manufacturers (“OEMs”) seek to extend driving range, meet emissions regulations, and address heightened customer focus on environmental impact. As xEVs represent a growing share of global vehicle production, OEMs are redesigning systems to improve energy efficiency, creating opportunities for increased semiconductor content per vehicle. We believe our continued investment in research and development (“R&D”) positions us to drive both content expansion and market share gains in this high-growth focus area.

Our IGD portfolio provides additional content opportunities in xEV powertrains. Our first-to-market Power-Thru gate driver technology integrates an isolated DC-DC converter and an IGD into a single IC, reducing component count and improving efficiency compared to multi-chip solutions. This integration enables smaller printed circuit boards (“PCBs”) and more compact systems, such as on-board chargers and traction motor inverters. We continue to advance this technology to support high-voltage gallium nitride (“GaN”) and silicon carbide (“SiC”) solutions used in xEV power conversion systems.

Industry experts see ADAS adoption continuing to expand across vehicle classes globally, driven by demand for safety and automation features. Our sensor and power ICs are used in steering and braking systems that enable functions such as collision avoidance, lane-keep assist, automatic emergency braking, and self-parking. Even modest levels of automation utilize products across our portfolio, including sensors, PMICs, and motor drivers. We believe that our content per ADAS system will increase as ADAS architectures evolve from electric power steering to steer-by-wire systems and from electro-hydraulic braking to electro-mechanical braking systems. As these ADAS architectures become more sophisticated, more semiconductor content is required per system. While we are positioned for this long-term shift toward higher automation, we are currently capturing significant value in the existing market. Today, our solutions are already widely deployed in Level 1 and 2 ADAS systems across both xEV and internal combustion engine (“ICE”) vehicles, allowing us to participate in ADAS growth without reliance on full vehicle autonomy.

TMR technology, marketed under the XtremeSense™ brand, strengthens our sensor portfolio and is a pillar of our innovation strategy. TMR enables higher sensitivity, lower power consumption, faster response times, and smaller form factors compared to other magnetic technologies. TMR solutions are well-suited to support high-accuracy sensing in electric powertrains and safety-critical steering and braking systems.

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Other Automotive Applications

ICE powertrains are expected to persist for the foreseeable future, either as standalone systems or as part of HEVs. OEMs continue to pursue improved fuel efficiency and reduced vehicle emissions. We remain a proven supplier supporting these objectives through decades of experience in ICE powertrain applications.

Our safety, comfort, and convenience business, commonly referred to as body electronics, continues to evolve alongside vehicle electrification. xEVs incorporate a growing number of motors, pumps, and fans, often in air or liquid cooling systems, thereby increasing our content opportunity per vehicle. We also enable safer and more energy-efficient interior and exterior lighting systems through continued innovation in LED driver products developed in close collaboration with customers.

Industrial Focus Applications: AI Data Center, Automation, and Robotics

The emergence of AI data centers is driving increased demand for our sensor and power ICs in both cooling and power supply applications. Our motor drivers are widely used in data center cooling systems, including fans and pumps, to provide air or liquid cooling of digital processors, power supplies, or network switches. Our fully integrated motor drivers reduce the number of components needed, lower energy consumption, and improve thermal efficiency.

In data center power supplies, our current sensor ICs improve efficiency and power density in power conversion systems, particularly as architectures transition to higher operating voltages such as 48V and 800V. Our galvanically isolated current sensors are well suited for these environments. We believe demand for our Hall-effect and TMR current sensors ICs will increase as data center power density requirements rise.

IGDs are also gaining traction in data center applications. Our compact, single-package gate driver solutions improve power density and efficiency and shrink the overall size of power conversion systems.

This momentum is reflected in our fiscal year 2026 performance, as data center sales represented an increasing percentage of our total revenue. Both motor drivers and current sensors contributed to fiscal year 2026 sales, while IGDs are being sampled and tested by customers for the next generation of data centers.

Factory automation and robotics represent additional high-growth opportunities driven by demand for precise motion control and energy-efficient systems. Robotics applications, including warehouse, industrial, collaborative, and humanoid robots, require high-accuracy, reliability, and safety specifications that align closely with our automotive ADAS heritage. We believe we are well positioned to leverage synergies across our sensor and power portfolios, including motor drivers as well as current, position, and angle sensors, to expand our presence in these emerging markets. Industrial customers value our rigorous quality standards and devices designed to perform reliably over long product lifecycles.

Other Industrial Markets

The other industrial markets comprise energy infrastructure, personal mobility, power tools, heavy transport equipment, medical, and consumer applications.

Energy infrastructure growth is being driven by the increased electrification of a variety of products and processes, government regulations to reduce emissions, and the rising power demands of AI data centers. Applications, including solar inverters, xEV charging infrastructure, and grid infrastructure seek the same efficiency and power density as xEVs. We enable more efficient use of grid-delivered power by supporting higher-voltage, higher-efficiency power architectures that reduce losses between the grid connection and the point of load. By deploying XtremeSense™ TMR current sensors and integrated power ICs, we enable smarter, more efficient power conversion and fault detection. These ICs are essential for managing the extreme load fluctuations and bidirectional energy flows inherent in the “Age of Electricity.” Our technology allows grid infrastructure to support significantly higher power densities while reducing energy waste.

Personal mobility applications, including two-wheelers, are experiencing electrification trends similar to larger automobiles and require compact, high-performance solutions with long product lifecycles. Our automotive-grade quality standards provide industrial customers with robust, high-performance solutions that have earned trust across markets.

Consumer applications include smart home products, gaming equipment, power tools, and personal medical devices. Our low-power XtremeSense™ TMR and Hall-effect sensors, along with efficient motor drivers, enable more energy-efficient consumer products with extended battery life.

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Market Opportunity and Served Available Market (“SAM”)

Within our target markets, our growth opportunity extends beyond unit deployment and is increasingly driven by structural market shifts and long-term megatrends that expand semiconductor content per system. These trends include electrification, automation, AI data centers, and robotics, each of which is driving higher system power, greater architectural complexity, and increased requirements for sensing, control, and power management. As these markets evolve, growth is increasingly defined by rising content per system rather than unit volumes alone, expanding our SAM even in periods of moderated end-market growth.

Across these target automotive and industrial markets, our sensor and power ICs are frequently deployed together to deliver complete solutions for precision motion control and efficient power management. These integrated solutions enable smaller, more efficient electric motors, improved power density, enhanced safety, and reduced total system cost, while supporting increasing semiconductor content per system in our target applications.

We are a market share leader in magnetic sensor ICs and believe there is an opportunity to grow this foundational business by aligning our portfolio with the highest growth applications within magnetic sensing. The transition to xEVs, ADAS, AI data centers, and robotics is driving demand for precise, high-bandwidth current and position sensing to enable efficient power conversion and motor control, as well as compliance with increasingly stringent performance and safety requirements. Our XtremeSense™ TMR technology underpins differentiated products, including industry-leading 10 MHz current sensors designed to support fast-switching GaN and SiC power devices. As system architectures evolve, specifically through the transition to electro-mechanical braking in vehicles and the build-out of high-power AI data centers, the sensing intensity per system is increasing in both volume and value, resulting in content gains. Adoption of TMR and inductive angular position sensors is also increasing to enable precise motion control in ADAS and robotics systems.

We are also expanding our power IC portfolio to increase content in automotive and industrial applications where electrification and energy efficiency are driving design changes. xEVs require a growing number of motors to support pumps, fans, and safety-critical systems. Next-generation vehicle architectures, such as electro-mechanical braking and steer-by-wire, meaningfully increase power IC semiconductor content per system. In parallel, AI data centers continue to evolve toward higher rack power, increased airflow requirements, and advanced liquid cooling solutions. These shifts increase demand for efficient motor drivers and power solutions while enabling content growth that scales faster than end-market unit volumes.

We also see an opportunity to expand our presence in IGDs as power conversion architectures evolve across xEVs, AI data centers, and energy infrastructure. The accelerating adoption of SiC and GaN power devices reflects customer demand for higher efficiency, smaller system size, and improved thermal performance. Our IGDs are designed to enable efficient, reliable operation of these next-generation power systems, supporting higher power throughput and contributing to meaningful increases in semiconductor content per system.

The same content expansion dynamics are emerging across industrial automation and robotics. As robots become more capable and are deployed at greater scale, systems will increasingly require multiple motors, precise position sensing, and advanced power management within each joint and subsystem. These increasing per system requirements create opportunities for multiple Allegro devices within a single robotic platform and represent an additional long-term expansion of our SAM.

Company Strategy

Our strategy is built on delivering high-performance, differentiated IC solutions that solve our customers’ most complex challenges. By innovating with purpose, we extend our leadership in high-growth target markets. We are committed to expanding our global footprint to remain a premier provider of semiconductor power and sensing solutions, driving the next generation of motion control and energy-efficient systems across the automotive and industrial landscape.

Invest in R&D that is market-aligned and focused on targeted portfolio expansion

We believe continued investment in R&D across product design, automotive-grade wafer technology, and advanced IC packaging is critical to maintaining our competitive position. Structural technology shifts in automotive and industrial markets, including xEV, ADAS, AI data centers, and robotics, are driving demand for higher intelligence, greater energy efficiency, and more complex system architectures that align closely with our core competencies. Our deep understanding of customer end systems has enabled us to expand our sensor IC and power portfolios to address these evolving requirements. By aligning our R&D investments with high-growth technology trends and subjecting programs to disciplined return on investment (“ROI”) evaluation, we believe we can support sustained growth while maintaining attractive financial performance. A smaller portion of R&D investment is allocated to an in-house incubator with a higher risk-reward profile that explores new technologies with the potential to contribute significantly to Allegro’s long-term revenue.

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Build on our automotive heritage to align our product development with the most rigorous applications and reliability expectations

We are a leading supplier of magnetic sensor and power ICs to the automotive market due to our deliberate focus on designing products to meet stringent automotive operating voltages, temperature ranges, and safety and reliability standards across the full product lifecycle, from design through manufacturing. By developing products from the outset to operate reliably in high-temperature and high-voltage environments, we have established a strong technical reputation with automotive OEMs and tier-one suppliers.

We believe our approach of using automotive standards as the baseline for product development positions us well as customers seek trusted suppliers to support increasingly complex and safety-critical systems, particularly in rapidly growing areas such as xEV powertrains and ADAS. These applications require higher performance, greater reliability, and longer product lifecycles, creating meaningful investment requirements for new competitors.

We leverage this automotive-grade expertise to address growing demand from industrial customers for rugged, high-reliability solutions in applications such as AI data centers, factory automation, and robotics. In our experience, products that meet or exceed stringent safety and reliability requirements tend to command higher average selling prices (“ASPs”) and exhibit slower ASP erosion over time compared to typical industry products.

Invest to lead in chosen markets and apply our intellectual property (“IP”) and technology to pursue adjacent growth markets

We intend to continue investing in technology development and our IP portfolio to maintain leadership in magnetic sensor ICs and expand our competitive position in power ICs across our target markets. We seek to maximize the return on these investments by leveraging proven technologies and existing R&D, sales, and support infrastructure to address adjacent, high-growth market opportunities with strong technical and customer overlap.

We apply our patented sensor and power-related IP to support increasing electronics content in automotive applications driven by the adoption of electrified powertrains and advanced safety systems. We are also investing in advanced current sensing, IGD, and sensorless motor control technologies to address AI data center applications, where rising power density and efficiency requirements align closely with our core capabilities. In addition, we are aligning our application domain expertise, smart sensor design, and power management and motor control algorithms to support the growing demand for electronics in industrial automation and robotics.

We believe this strategy of extending core technologies into adjacent markets enables us to expand our SAM while achieving higher returns on our R&D investments.

Sales operations and customer relationships

We sell our products globally through a combination of a direct sales force, distributors, and independent sales representatives. Our global sales infrastructure is designed to support customers through key account managers and regional technical and support centers located near customer operations. These centers enable us to work closely with customers as an extension of their design teams, providing early insight into system requirements and accelerating product adoption and ramp-up in customer designs.

We intend to continue to strengthen relationships with existing customers while enabling our channel partners to play a greater role in demand generation, customer support, and fulfillment for smaller, broad-based industrial customers. We believe expanding the role of our channel will allow us to further penetrate industrial markets and scale our business efficiently.

Our approach to the Chinese market emphasizes localized engineering engagement to drive innovation, regional supply chain capabilities, and close co-development with domestic OEMs, enabling deep customer partnerships and design wins based on our differentiated technology.

During fiscal year 2026, we reorganized our internal sales force to align by end market rather than geography. We believe this will further support sales growth across automotive and industrial markets.

Improve our gross margins through product innovation and cost optimization

We seek to improve profitability by introducing differentiated products with value-added features while reducing manufacturing costs through our fabless, asset-light operating model. We expect to continue enhancing our product mix by developing new products for growth markets where we believe we can generate higher ASPs and/or gross margins.

We also intend to deepen relationships with key foundry and manufacturing partners to apply our products and applications expertise in developing differentiated, cost-efficient wafer processes and packaging technologies. By leveraging the advanced manufacturing capabilities of our strategic suppliers, adopting more cost-effective packaging solutions, and optimizing the mix of internal and external assembly and test capacity, we believe we can reduce manufacturing costs, limit capital requirements, enhance supply reliability, and support continued growth.

We intend to continue selecting leading manufacturing partners to maintain product quality, ensure continuity of supply, and protect our IP.

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Selectively pursue acquisitions and other strategic transactions

We evaluate and selectively pursue acquisitions and transactions as an integral part of our strategy to supplement organic growth. We focus on acquisitions that we believe will accelerate our growth in strategic focus areas, complement our expertise and customer base, and be accretive to our target financial models. Historical examples include our acquisitions of Crocus Technology International Corp. and Heyday Integrated Circuits.

Maintain sustainability efforts

We will continue to innovate with purpose, aiming to help address critical global challenges related to energy efficiency and vehicle emissions, as well as clean and renewable energy with our sensing and power management product portfolio. In addition, we strive to operate our business in a socially responsible and environmentally sustainable manner, with the goals of reducing costs, maintaining a dedication to social responsibility in our supply chain, and disclosing the environmental impact of our business operations.

Company Products and Solutions

Our product portfolio includes over 1,500 products across a range of high-performance analog mixed-signal semiconductors. We apply our deep technology know-how to deliver magnetic sensing IC and power IC solutions to:

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Sense speed, position, angle and current to enable critical safety features in ADAS and optimize power density and efficiency in xEVs to extend driving range. Beyond the automotive market, our technologies enhance the performance and energy efficiency of AI data centers, factory automation, robotics, and energy infrastructure;

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Regulate complex vehicle systems and manage high-voltage power through integrated PMICs and IGDs to enhance functional safety and power efficiency. Our solutions are engineered to significantly increase power density, thereby reducing overall system footprint, minimizing the use of raw materials, and lowering total system cost for our customers; and

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Drive high-performance motors using our advanced motor drivers, powered by proprietary algorithms that deliver industry-leading reliability and energy efficiency. These solutions provide the precision control required for smooth operation with minimal audible noise and vibration, essential for both in-cabin motors for premium xEVs and the high-speed accuracy required of robotics.

Magnetic Sensor ICs

We offer what we believe to be the industry’s leading portfolio of magnetic sensor ICs. Our solutions are based on our monolithic Hall-effect, GMR and TMR technologies, which allow customers to develop contactless sensor solutions that reduce mechanical wear and provide greater measurement accuracy and system control. Our portfolio of magnetic sensor ICs includes the following:

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Current Sensor ICs: Current sensor ICs measure current by detecting the magnetic field generated by a current carrying conductor. We offer a broad portfolio of current sensors designed to support a wide range of voltages and applications, enabling customers to monitor and protect electronic systems while improving energy efficiency. These products are used across automotive and industrial markets, including on-board chargers, DC-DC converters, inverters, industrial motors, solar inverters, robotics, AI data center power supplies and xEV charging infrastructure. Our XtremeSense™ TMR based current sensors deliver industry leading bandwidth, enabling high-performance SiC- and GaN-based power conversion in high voltage systems such as AI data centers and energy infrastructure.

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Position Sensor ICs: Position sensor ICs provide high-precision analog or digital outputs to measure magnetic field intensity, establishing the exact position or angle required for complex motion control. These solutions are fundamental to the functional safety of ADAS power steering and braking systems, as well as the high-speed synchronization of xEV traction motors. By leveraging our proprietary XtremeSense™ TMR technology, we provide industry-leading resolution and advanced safety diagnostics essential for mission-critical motor position sensing in autonomous and electrified platforms. While these high-performance sensors continue to optimize the efficiency of advanced transmission and powertrain systems in traditional ICE vehicles to meet global emissions standards, our innovation is increasingly focused on the next generation of safe and sustainable mobility.

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Speed Sensor ICs: Our high-precision speed sensor ICs and advanced high-performance xMR solutions provide critical digital data on rotation and direction for the next generation of safe, electrified, and automated mobility. These sensors can be essential for the functional safety of ADAS braking systems and the precise motion control required in industrial robotics. While our proprietary algorithms continue to support traditional powertrain optimization to meet global emissions standards, our portfolio is increasingly centered on enabling the autonomous and electrified future.

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Power ICs

Our power IC portfolio includes high-temperature and high-voltage capable motor driver ICs, DC-DC voltage regulators, safety PMICs, LED driver ICs, and high-voltage IGDs. These power ICs allow our customers to design safer, smaller, and more power-efficient systems. We employ embedded algorithms that reduce the need for external software development, reduce audible noise, and increase start-up reliability in BLDC motors and fans. Our portfolio of power ICs includes the following:

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Motor Driver ICs: Motor driver ICs contain the power drivers and the sequencing logic to drive the coils of a variety of motors. Our motor driver ICs utilize embedded algorithms to improve energy efficiency and motion control in various automotive motors, pumps, and fans. Our ICs also spin AI data center cooling fans and pumps, as well as motors for robotics, factory automation, medical devices, and home appliances.

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Regulators, Safety PMICs and LED Driver ICs: Our portfolio of regulator ICs and PMICs is used extensively for DC-DC power conversion in advanced ADAS and powertrain systems. Our LED driver ICs and modules are used in smart automotive lighting systems to improve efficiency and reduce solution size.

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IGDs: These devices typically combine an isolated DC-DC power supply and high-voltage gate drivers into a single package. They are designed to drive GaN and SiC switches in high-efficiency power conversion systems. Our IGDs enable applications that are smaller and more efficient than competing solutions, helping to shrink PCBs and reduce total system size and raw materials used in AI data centers, xEV powertrains, and energy infrastructure.

Examples of our IC products and their applications in end markets are set forth in the following table.

Automotive Market IC Solutions

Industrial and Other Market IC Solutions

PRODUCTS

▪ Current sensors

▪ Current sensors

▪ Position sensors

▪ Position sensors

▪ Speed sensors

▪ Speed sensors

▪ Motor drivers

▪ Motor drivers

▪ LED drivers

▪ LED drivers

▪ Regulators and PMICs

▪ Regulators and PMICs

▪ IGDs

▪ IGDs

APPLICATIONS

▪ Electric motor powertrain and on-board charging systems for xEV

▪ Data center power delivery and cooling systems

▪ Smart home/internet of things

▪ ADAS, active safety, including steering and braking systems

▪ Robotics, factory automation and Industrial motors

▪ Gaming devices

▪ Engine management and transmission systems

▪ xEV charging infrastructure, solar power generation, and battery storage

▪ Power tools

▪ Comfort and convenience including in-cabin motors, HVAC, and LED lighting

▪ Personal mobility

▪ Household appliances, including white goods

▪ Body electronics, including wipers, door/window sensors, seat position and suspension

▪ Consumer-grade medical devices

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Sustainability Initiatives

Our commitment to “Innovation with Purpose” is a core value that includes operating responsibly and sustainably. Our engineers are developing innovative solutions that address critical customer needs, such as improving efficiency in automotive and industrial systems and supporting the transition to more sustainable energy solutions. We believe that integrating ESG considerations into our business strategy is essential for long-term value creation and meeting the evolving expectations of our stakeholders, including our customers. We recognize that the regulatory landscape surrounding environmental and social issues is dynamic, and our approach may evolve over time as regulations and stakeholder expectations change.

Our ESG strategy is advanced through our five signature initiatives focused on our products, environmental impacts, supply chain, communities, and workforce. At the core of these initiatives is maximizing the positive impact of our products. We believe our ICs help address global challenges related to carbon dioxide (“CO2”) emissions, energy efficiency, and renewable energy across a variety of applications. For example, our products:

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Improve energy efficiency in HEVs and BEVs;

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Reduce vehicle emissions and improve fuel economy for ICE vehicles;

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Bolster energy efficiency in next generation data center infrastructure; and

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Enable energy management that is instrumental in renewable and smart energy applications.

In response to customer demand and as part of the Company’s aim to reduce costs and the environmental impact of our products throughout their lifecycle, we are investing in innovation while measuring and tracking emissions, waste, and water usage across our facilities. The Company has implemented several energy, water, and waste reduction projects at our sites. We also strive to adhere to international standards and regulations regarding manufacturing processes, business procedures, and product composition. Our Scope 1 and Scope 2 emissions, energy use, waste data, water consumption, and other key ESG metrics are publicly disclosed in our annual ESG Report and Carbon Disclosure Project questionnaires on climate change and water security and are available at www.allegromicro.com. Please note that the content on our website and in our ESG Report is not part of, nor incorporated by reference, into this Annual Report.

The Company is a member of the Responsible Business Alliance (“RBA”), the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains. The Company’s subcontractors and direct materials suppliers must complete and sign the Company’s Supplier Code of Conduct, which addresses labor and human rights, worker health and safety, and environmental standards in alignment with the RBA. In the Company’s Supplier Code of Conduct, subcontractors and direct materials suppliers attest to holding ISO 14001 and ISO 45001 (or comparable) certifications or having a plan to become certified.

To support our commitment to ESG, we have established a cross-functional team led by our legal department to manage our ESG program (the “ESG Steering Committee”). Our ESG Steering Committee consists of key team members from various departments throughout the Company who are responsible for providing oversight of ESG risks and opportunities, guiding the Company through our multi-year ESG goal setting and roadmap implementation, and promoting supplier compliance with our global sustainability efforts. In addition, our ESG team updates senior management and the Nominating and Governance Committee of our Board of Directors (the “Board”) on a quarterly basis regarding ESG target setting, progress, risks, opportunities, regulatory preparedness, and other key focus areas. An ESG update is also provided annually to our full Board.

Sales, Marketing and Customer Support

We sell our products worldwide through multiple sales channels, including through our direct sales force, distributors and independent sales representatives, who resell our products to numerous end customers. We have a geographically diverse mix of sales. Our net sales made to distributors were approximately 55.0%, 50.7% and 52.9% of our net sales in fiscal years 2026, 2025 and 2024, respectively. Sales to our largest, non-affiliated distributor accounted for 9.4%, 9.3%, and 10.2% of our net sales in fiscal years 2026, 2025 and 2024, respectively.

Our direct sales force and field applications engineers provide our customers with specialized technical support. We believe that maintaining a close relationship with our customers and serving their specific technical needs improves their level of satisfaction and enables us to predict and influence their future product needs. We provide ongoing technical training to our distributor and sales representatives to keep them informed of our existing and new products.

We maintain an internal marketing organization that is responsible for increasing our brand awareness, promoting our products to prospective and existing customers, and driving demand for our products in the market. Our marketing organization’s responsibilities include the creative management of our website, market research and analytics, and 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 and conferences.

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Manufacturing and Raw Materials

Our fabless manufacturing strategy consists of a combined internal and external sourcing model. We operate as a fabless company for semiconductor wafer fabrications, relying entirely on third-party foundry partners. For our back-end manufacturing, we use a combination of internal and external resources. Our facility in the Philippines (“AMPI”) serves as our primary internal assembly and testing site. We supplement AMPI’s capacity with a network of external subcontractors located throughout the world. Additionally, we are expanding our regional manufacturing footprint by qualifying additional wafer foundries and outsourced semiconductor assembly and test (“OSAT”) partners in Asia, which enhances supply chain resilience and supports continuity of service to our regional customers.

Our manufacturing processes use raw materials, including silicon wafers, laminate substrates, lead frames, gold and copper wires, rare earth materials, including samarium used in our magnetic sensors, and molding compounds. We seek to obtain these materials from our suppliers in a timely manner to align our production with customer demand. We work closely with our key third-party suppliers, providing rolling forecasts to help ensure an adequate supply of materials and wafer capacity. However, these suppliers may extend lead times, limit supplies, or increase prices due to factors beyond our or their control, including geopolitical and international trade restrictions. Our reliance on this hybrid manufacturing model and our supply chain involves a number of risks, which are described in more detail under “