Product: Power Integrations

Cutting Edge Companies: Power Integrations

Published, Summer 2004

This column highlights companies in the business of providing solutions to social and environmental challenges. Featured companies are typically held in the SmallCap Innovations portfolios offered to Walden’s clients.

The mascot of Power Integrations is an "energy vampire slayer," fitting for a company with a Web site "Green Room" that promises: "We’re spending all our energy to save yours." The energy vampires that Power Integrations targets are "energy-sucking devices"ľ older, inefficient power supplies. According to the company, more than $4 billion of electricity is estimated to be wasted each year on household power products believed to be turned "off." Power Integrations reports that standby power waste used to support instant-on in TVs, DVDs, and other household power consuming equipment represents the total amount of power generated by 26 average size power plants.

Power Integrations makes semiconductors for integrated circuits that convert AC power to DC power. The company’s products enable original equipment manufacturers to make smaller and cheaper power supplies for portable devices such as cell phones, personal digital assistants (PDAs), digital cameras, portable computers, and other electronic devices. The integrated circuits conserve energy by reducing energy leakage that occurs in larger power supply adapters. Conventional power supplies, which continue to drain power even when the devices they are supplying are turned off or are fully charged, waste nearly 10 percent of the electricity purchased by consumers. According to Power Integrations, its products eliminate 90 percent of this energy waste.

In July 2001, President Bush issued an executive order stating that federal agencies must purchase products with standby energy consumption of 1 watt or less, and the European Union has issued even stricter standby power requirements. Power Integrations products allow equipment manufacturers to meet both of these requirements as well as other energy efficiency regulations.

—Ken Scott

The information provided in the above article is for historical purposes only. Such information may no longer be current and therefore should not be relied upon.

The information contained herein has been prepared from sources and data we believe to be reliable, but we make no guarantee as to its adequacy, accuracy or completeness. We cannot and do not guarantee the suitability or profitability of any particular investment. No information herein is intended as an offer or solicitation of an offer to sell or buy, or as a sponsorship of any company, security, or fund. Opinions expressed herein are subject to change without notice.