Knowles Corporation (Knowles) operates as a manufacturer of specialty electronic components.
The company designs parts that perform unique, critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, the company enables businesses to succeed in the most demanding applications across medtech, defense, and industrial markets. The company’s high-performance capacitors, radio frequency (RF) and microwave filters, advanced medtech micr...
Knowles Corporation (Knowles) operates as a manufacturer of specialty electronic components.
The company designs parts that perform unique, critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, the company enables businesses to succeed in the most demanding applications across medtech, defense, and industrial markets. The company’s high-performance capacitors, radio frequency (RF) and microwave filters, advanced medtech microphones, balanced armature speakers, and miniaturization products enable and enhance the performance of technologies with the power to change, improve, and save lives.
The company focuses on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enables the company to deliver innovative solutions across multiple applications.
Strategy
The company focuses on delivering high value, differentiated solutions to a diverse set of end markets.
In the company’s Precision Devices (PD) segment, its high-performance capacitors and RF filtering solutions enable some of the most demanding applications in the defense, medtech, and electrification markets. The company’s capacitor portfolio includes products with highly specialized requirements, including high voltage, high temperature, and high reliability. The company also delivers RF filtering solutions across a broad range of applications and frequencies primarily serving the defense market. The company continues to focus on sales growth and improved margins by expanding its presence in profitable markets through organic initiatives and acquisitions.
In the company’s Medtech & Specialty Audio (MSA) segment, its primary focus is to deliver high reliability and industry leading balanced armature speakers and microphones to leading hearing health manufacturers and premium audio markets. The company works collaboratively with customers to ensure that its solutions meet their size, broad frequency response, and low power or custom acoustic module requirements. The company’s expertise in the traditional hearing aid market enables it to capitalize on emerging markets like Over the Counter (OTC) hearing aids. The company continues to focus on sales growth and improved margins by leveraging its core strengths in manufacturing and research and development.
Business Segments
The company operates in two segments, Precision Devices (PD) and MedTech & Specialty Audio (MSA).
PD
This segment specializes in the design and delivery of high-performance capacitor products and RF solutions primarily serving the defense, medtech, electrification, and industrial markets. PD has sales, support, and engineering facilities in North America, Europe, and Asia, as well as manufacturing facilities in North America and Asia.
MSA
This segment designs and manufactures balanced armature speakers and microphones used in applications that serve the hearing health and premium audio markets. MSA has sales, support, and engineering facilities in North America, Europe, and Asia, as well as manufacturing facilities in Asia.
The company sells its products directly to original equipment manufacturers (OEMs), their contract manufacturers and suppliers, and through sales representatives and distributors worldwide.
Dispositions
On December 27, 2024, the company completed the sale of the Consumer MEMS Microphones (CMM) segment to Syntiant Corp.
Market Trends
In its PD segment, the company sells high reliability, high voltage and high temperature ceramic, film, mica and electrolytic capacitors, and RF filters across diverse end markets.
In the company’s MSA segment, sales within the hearing aid market are largely driven by aging demographics, healthcare spending, increasing affluence in emerging markets, and government subsidies. The company’s microphones and balanced armature speakers are also utilized to produce high-definition audio for higher performance True Wireless Stereo (TWS).
Geographic Trends
The company strives to maintain its manufacturing facilities in close proximity to its direct customers. In PD, the company operates facilities in North America and facility in Asia for the manufacturing of products that support its global customers, as well as their suppliers and contract manufacturers. In MSA, the company operates facilities in Asia to serve the leading hearing health manufacturers largely based in Europe, China, and North America. Although end-user demand for hearing aids is global and marketing activities occur globally, the majority of the company’s manufacturing is located in the Philippines and Malaysia.
Competition
Key competitors of the company’s PD segment include Kyocera AVX, Yageo Corporation's Kemet products, Vishay Intertechnology, and a broad range of specialty companies and brands. The company’s MSA segment's primary competitor is Sonion.
Customers, Sales, and Distribution
The company serves customers in the medtech, defense, electrification, and industrial markets. The company’s customers include some of the largest OEMs and operators in these markets. In addition, many of the company’s OEM customers outsource to contract manufacturers.
The company manufactures and develops its products, as well as maintain sales and technical customer support offices in North America, Europe, and Asia. The company supplements its direct sales force with external sales representatives and distributors. The company’s global distribution center is located in Penang, Malaysia. The company’s worldwide sales force provides geographically specific support to its customers and specialized selling of product lines to various customer bases.
Research and Development
The company’s research and development expenses for the year ended December 31, 2024, were $39.5 million.
Intellectual Property and Intangible Assets
The company’s U.S. patents expire in calendar years 2025 through 2044. The company has maintained the U.S. federal trademark registrations for KNOWLES and Knowles logo designs, along with various other trademarks. The company has also filed or obtained foreign registration for these marks in other countries or jurisdictions where it conducts, or anticipates conducting, international business.
Seasonality
The company’s MSA segment tends to have stronger revenues in the fourth quarter of each fiscal year (year ended December 2024).
History
Knowles Corporation was founded in 1946. The company was incorporated in Delaware in 2013.