This document provides an overview of Power Integrations, Inc. It discusses the company's position as a leader in energy-efficient power conversion technology, its long-term growth drivers including the transition to integrated circuit-based power supplies and increasing demand for energy efficiency. The company has expanded its addressable market with new higher-power products and an acquisition of a company providing motor control technology. Power Integrations has achieved consistent revenue growth and a strong balance sheet to support further innovation and growth opportunities.

1. Power Integrations, Inc.
Nasdaq: POWI
May 2014

2. © Copyright 2014 Power Integrations 2
Forward-Looking Statements/Non-GAAP Metrics
These slides accompany an oral presentation by Power Integrations, Inc., which
contains forward-looking statements. Each statement relating to events that will or
may occur in the future is a forward-looking statement. The Company’s actual
results may differ materially from those suggested in the presentation. Information
concerning factors that could cause such a difference is contained in the
Company’s most recent reports on Form 10-K and 10-Q.
This presentation may also contain certain non-GAAP financial information.
Reconciliations of non-GAAP financial metrics to GAAP results are available at
the end of this presentation and/or on the investor page of the Power Integrations
website, http://investors.powerint.com (see “Historical Financials” data file).

3. © Copyright 2014 Power Integrations 3
Secular Growth Story in Analog Semis
 Leader in energy-efficient high-voltage power conversion
 Clean-tech enabler: efficient appliances, LED lighting, DC motor
drives, renewable energy, electric transportation
 Expanding market opportunity with higher-power products,
rapid-charging for mobile devices
 Double-digit revenue CAGR since 2001

4. © Copyright 2014 Power Integrations 4
 Ultra-simple power converters
• Fewer components
• Shorter design cycles
• Easier to manufacture
• Higher reliability
 BOM cost similar to discrete
designs
 Highly energy-efficient
Comprehensive Expertise in High-Voltage

5. © Copyright 2014 Power Integrations 5
Highly Integrated Power Converters
Replacing Legacy Technologies
Discrete power supply:
70 components
Equivalent power supply with POWI:
36 components, smaller board
Linear
transformer:
weighs 12 oz.
Adapter with POWI:
weighs 2 oz.

6. © Copyright 2014 Power Integrations 6
0
100
200
300
400
500
600
700
U.S.PatentsGranted
Relentless Innovation
609 U.S. Patents
492 Non-U.S. Patents
at 12/31/2013

7. © Copyright 2014 Power Integrations 7
Vast Addressable Market –
Power Conversion Is Needed Everywhere

8. © Copyright 2014 Power Integrations 8
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability

9. © Copyright 2014 Power Integrations 9
Leading Transition to IC-Based Power Supplies
Linear Transformers
1970 1994
Discretes
1994 Today1970
Integrated
•Fairchild
•Sanken
•ST Micro
•ON Semi
•Infineon POWI
•iWatt/Dialog
•BCD/Diodes
•Active
•Leadtrend
•OnBright
•Fairchild
•Infineon
•ON Semi
•ST Micro
•NXP
PowerSupplyUnitVolume

10. © Copyright 2014 Power Integrations 10
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability
2. Energy-efficient electronics & appliances
• Driven by standards and consumer awareness

11. © Copyright 2014 Power Integrations 11
Recognized Leader in Clean Technology
 Member of clean-tech stock indices
• The Cleantech Index (CTIUS)
• Nasdaq Clean Edge Green Energy (CELS)
• Ardour Global Index (AGIGL)
 Twice named a top 20 sustainable stock
by SustainableBusiness.com
 ENERGY STAR® award recipient
 Star of Energy Efficiency award recipient

12. © Copyright 2014 Power Integrations 12
Energy Specs Continue to Tighten
 U.S. Dept. of Energy tightens federal
standards for external power supplies
 ENERGY STAR® “Most Efficient” label
rewards top performers
 New battery-charger standards in
California in 2013
 European standby power limitation
tightened to 0.5 W in 2013
 Traditional 40 W and 60 W light bulbs
banned in U.S. as of 2014

13. © Copyright 2014 Power Integrations 13
“Zero” Series Zeroes Out Standby Waste
 CAPZero™ eliminates waste
from X-cap bleed resistors
 SENZero™ disconnects sense
resistors in main power supply
 LinkZero™ cuts waste to 0.00 W
in chargers and auxiliary power
supplies

14. © Copyright 2014 Power Integrations 14
Energy Vampire vs. LinkZero™

15. © Copyright 2014 Power Integrations 15
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability
2. Energy-efficient electronics & appliances
• Driven by standards and consumer awareness
3. LED lighting
• Requires low-cost, efficient, reliable power supplies

16. © Copyright 2014 Power Integrations 16
Well-Positioned in LED Lighting
 Traditional bulbs phasing out
 LEDs need efficient, reliable drivers
 Integration brings reliability, efficiency,
size advantage
2007 2008 2009 2010 2011 2012 2013
LED Lighting Revenue
>20% Growth in 2013

17. © Copyright 2014 Power Integrations 17
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• Integration saves labor and materials, improves reliability
2. Energy-efficient electronics & appliances
• Driven by standards and consumer awareness
3. LED lighting
• Requires low-cost, efficient, reliable power supplies
4. Expanding market opportunity
• Rapid charging for mobile-device market
• Higher-power products add ~$1B to addressable market

18. © Copyright 2014 Power Integrations 18
Rapid Charging: Emerging Trend in Mobility
 Larger batteries causing extended downtime for charging
 Qualcomm Quick Charge 2.0 cuts charge time up to 75%
 POWI is lead strategic partner on the charger side
 Higher dollar content than a standard charger
Conventional
Charging
Quick Charge 2.0
Quick Charge 2.0
PMIC
Charger Interface Chip +
Power Conversion Chip

19. © Copyright 2014 Power Integrations 19
Expanding Market with Mid-Power Products
0W 500W5W 50W2W 20W 200W
CAPZero™/SENZero™/Qspeed™
Hiper™ Family
TOPSwitch™
TinySwitch™
LinkSwitch™ / LinkZero™
LinkSwitch-PL/PH / LYTSwitch™
LED Products
LOW-POWER MID-POWER

20. © Copyright 2014 Power Integrations 20
Radically Simplifying Mid-Power Converters
HiperPFS™ and HiperTFS™ replace up to 100 components
HiperTFS + HiperPFS

21. © Copyright 2014 Power Integrations 21
More Silicon Content at Higher Power Levels
EMI Filter PFC Stage Main and Standby Stage
Main &
Standby
Controller
Boost Inductor
PFC
Controller
EMI Filter
Standby
Output
AC
Gate
Drive
SR
Main
Output
TNY
Before: Single IC for standby power supply

22. © Copyright 2014 Power Integrations 22
More Silicon Content at Higher Power Levels
EMI Filter PFC Stage Main and Standby Stage
Main &
Standby
Controller
Boost Inductor
PFC
Controller
EMI Filter
Standby
Output
AC
HiperPFS
HiperTFS
CpZ
Gate
Drive
SnZ
QSpeed
SR
Main
Output
HiperTFS™ main + standbyCapZero™ HiperPFS™ SenZero™ Qspeed™
Now: Up to five components, potential dollar content >5x higher

23. © Copyright 2014 Power Integrations 23
Acquisition Extends Power Range Further
CONCEPT drivers reduce component count, enhance efficiency, reliability
 Acquired CT-Concept in 2012
 IGBT drivers for industrial
motors, renewable energy,
locomotives, DC transmission
 Addressable market ~$500M;
now >10% of POWI revenue
 Broadens POWI opportunity in
clean-power applications

24. © Copyright 2014 Power Integrations 24
Spanning the Clean-Power Ecosystem
Energy
Ecosystem
Energy
Generation
Energy
Transmission
Energy
Consumption
Wind Turbines
Solar Power
HVDC
Transmission
Motor Control
Hybrid Vehicles
Locomotive
Medical
End Markets
Power
Semiconductors
IGBT module: Transistors arranged
in parallel to increase switching
capacity at very high currents and
high voltages
Driver optimizes efficiency,
operating performance and
lifespan of the IGBT module
IGBT
ModuleDriver

25. © Copyright 2014 Power Integrations 25
Higher-Power Products Expand SAM to $2.5B
● Mobile phone chargers
● Cordless phone adapters
● Broadband modems
● VoIP phones
● Wireless routers● Desktop/server standby
● Desktop main
● Notebook adapters
● LCD monitors
● Printers
● White goods
● Air conditioners
● TV standby / TV main
● Small appliances
● Set-top boxes
● DVD players
● Game consoles
● LED general lighting
● LED street lights
● Smart meters
● Industrial control
● UPS
● Industrial motor drives
● Wind/solar inverters
● Electric trains/cars
● DC transmission
Consumer
Comms
Computer
Industrial
Mid-power applications in orange
High-power applications in green

26. © Copyright 2014 Power Integrations 26
Consistent Track Record of Growth
0
50
100
150
200
250
300
350
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenues ($M)

27. © Copyright 2014 Power Integrations 27
Outperforming the Peer Group
-10%
0%
10%
20%
30%
40%
2007 2008 2009 2010 2011 2012 2013 CAGR
Annual Revenue Growth
POWI
Analog Semis (SIA)

28. © Copyright 2014 Power Integrations 28
Well-Diversified Revenue Mix
25%
Consumer
23%
Computer
43%
Comms
2002
2013
21%
Comms
35%
Consumer
34% Industrial
10%
Computer
Higher-margin industrial & consumer markets now >2/3 of revenues;
cellphone chargers down from 40% to ~10%

29. © Copyright 2014 Power Integrations 29
Growing Cash Flow
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013
Cash Flow from Operations ($M)
One-time tax
payment

30. © Copyright 2014 Power Integrations 30
Strong Balance Sheet
 $218M cash and investments
• Used $116M for Concept acquisition
 No debt
 Quarterly dividend increased to
$0.10 in Q1 2014, will rise to $0.12
in Q3 2014
 $260M of repurchases since 2004
• Average price of $23
• Diluted share count down 4% since 2008
0
50
100
150
200
250
Q3'08 Q1'14
Cash and Investments ($M)
10
15
20
25
30
35
Q3'08 Q1'14
Diluted Shares Outstanding (M)
At March 31, 2014

31. Power Integrations, Inc.
Nasdaq: POWI