The Next Wave of E-Mobility: Why Vishay's D2TO35H Resistor Could Drive a New Era of Growth

The race to electrify transportation and industrial systems is no longer hypothetical—it’s a full-blown revolution. And at the heart of this transformation lies a seemingly humble component: the resistor. On May 14, 2025, Vishay Intertechnology (NYSE: VSH) unveiled its D2TO35H resistor, a high-reliability power component engineered to tackle the punishing demands of electric vehicles (EVs), factory automation, and defense systems. This tiny device could prove to be a monumental catalyst for Vishay’s growth—and a critical buy signal for investors.

The Case for High-Performance Power Components

The EV boom isn’t just about batteries and semiconductors. It’s about every link in the energy chain, including resistors that absorb voltage spikes, dissipate heat, and ensure system reliability under extreme conditions. The D2TO35H, with its 30% higher energy absorption capacity (15 J/0.1s) and 35 W power dissipation, is designed to meet these demands head-on. Its AEC-Q200 certification—a gold standard for automotive-grade components—ensures it can withstand the vibrations, temperature swings, and electrical stress of modern vehicles.

But this isn’t just a product for cars. Industrial machinery, from robotic arms to 48-volt factory systems, relies on components that can handle surges without failing. The D2TO35H’s non-inductive design and +175°C operating temperature make it ideal for environments where downtime is costly. Even military applications, which demand rugged, fail-safe electronics, are now within reach.

Vishay's valuation has lagged behind peers despite its innovation pipeline. Could this resistor be the catalyst?

Why This Resistor Matters to Vishay’s Bottom Line

Vishay’s dominance in passive components—resistors, capacitors, inductors—is built on its ability to anticipate and shape industry needs. The D2TO35H isn’t just a product; it’s a strategic move to lock in long-term contracts with automakers, industrial conglomerates, and defense contractors. Consider the specs:
- 30% higher energy absorption: Reduces system complexity, lowering costs for manufacturers.
- TO-263 packaging: Enables compact designs, a critical advantage in space-constrained EVs and drones.
- 30-week lead times: Shorter than competitors, giving Vishay’s clients supply chain predictability—a rarity in today’s market.

These features position the D2TO35H as a must-have component, not a luxury. Automakers like Tesla (TSLA) or General Motors (GM) can’t afford to skimp on reliability when recalls or downtime cost millions. For Vishay, this translates to margin expansion as high-margin products like the D2TO35H displace lower-margin legacy components.

The Bigger Picture: Secular Trends in Vishay’s Favor

The EV market is projected to grow at a 22% CAGR through 2030, with automakers ramping up 48-volt mild-hybrid systems even as fully electric vehicles scale. Meanwhile, industrial automation spending is rising, driven by robotics and smart factories. Both sectors require components that can handle higher voltages and energy densities—exactly what the D2TO35H delivers.

Don’t overlook the supply chain angle. Vishay’s vertically integrated manufacturing, from raw materials to final assembly, insulates it from shortages that plague rivals. This stability is a competitive moat in an era of geopolitical tensions and semiconductor shortages.

A Compelling Investment Thesis

Vishay’s stock trades at just 12.5x forward earnings, a discount to peers like TDK (TDK) at 18x and Murata Manufacturing (6981.T) at 16x. Yet its R&D pipeline—bolstered by innovations like the D2TO35H—suggests it’s undervalued relative to its growth potential.

The D2TO35H’s immediate availability and 10-week lead times signal strong demand anticipation, likely driving revenue acceleration in Q3 2025. Analysts project Vishay’s industrial segment could grow by 15% this year, with automotive bookings up 20%.

Act Before the Market Catches On

The D2TO35H isn’t just a resistor; it’s a harbinger of Vishay’s future. With EV adoption surging, industrial automation maturing, and defense budgets rising, this product—and its successors—could redefine passive components as growth drivers, not commodities.

For investors, the calculus is clear: Vishay is undervalued, underappreciated, and on the cusp of a secular tailwind. The time to act is now—before the market realizes just how critical this tiny resistor is to the future of electrification.

Invest wisely, but invest soon.