{"url_path":"/sec/algm/10-k/2026/item-2","section_key":"item-2","section_title":"Item 2 Properties.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-21","source_url":"https://www.sec.gov/Archives/edgar/data/866291/0001193125-26-233537-index.html","accession_number":"0001193125-26-233537","cik":"0000866291","ticker":"ALGM","issuer_name":"ALLEGRO MICROSYSTEMS, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/866291/0001193125-26-233537-index.html","primary_entity_key":"0000866291","primary_entity_name":"ALLEGRO MICROSYSTEMS, INC."},"word_count":496,"has_tables":true,"body_markdown":"Item 2. Properties.\n\nManufacturing, Operations and Facilities\n\nOur corporate headquarters is located in Manchester, New Hampshire, and we have a global footprint with 27 locations across four continents. As of the end of fiscal year 2026, our operations are primarily conducted at the locations shown below. Our AMPI subsidiary in Manila, Philippines operates as our primary internal assembly and testing facility.\n\nFacility\n\n \n\nFacility Function\n\n \n\nFacility Size\n\n \n\nStatus\n\nManila, Philippines\n\n \n\nManufacturing - Assembly, Test, Finish\n\n \n\nApproximately 440,000 square feet\n\n \n\n Owned\n\nMuntinlupa City, Philippines\n\n \n\nResearch and Development, Administrative\n\n \n\nApproximately 40,000 square feet\n\n \n\n Leased (Five-year lease expires in 2028)\n\nManchester, New Hampshire\n\n \n\nCorporate Headquarters, Research and Development, Administrative\n\n \n\nApproximately 125,000 square feet\n\n \n\n Owned\n\nWe also lease design and applications support centers in the Americas, Asia and Europe. Our decision to open and maintain additional design centers is based on several factors, including the ability to employ talented engineers at efficient costs and to better serve our local customer base.\n\nOur manufacturing strategy consists of a combined internal and external sourcing strategy. This approach enhances security of supply by providing capacity throughout the manufacturing process and has enabled us to reduce capital requirements and reduce fixed costs, access additional capacity during periods of high demand and establish wafer process technology collaborations.\n\nWe have a fabless business model that provides us with enhanced security of supply and manufacturing flexibility. Our primary fab partners currently include UMC, PSL, Tower and TSMC. We have master service agreements with all primary foundry partners, and we have also engaged in long-term supply agreements with some of our foundry partners.\n\nAMPI is our primary internal assembly and testing facility for our sensor and power products, with packaging capabilities and quality standards that meet stringent automotive safety and reliability specification requirements. We also supplement AMPI’s assembly capabilities with subcontractors throughout Asia, and approximately 51%, 45% and 47% of our assembly was outsourced in fiscal years 2026, 2025 and 2024, respectively. We continue to make progress expanding our regional manufacturing capabilities in Asia. During fiscal year 2026, we began shipping to regional customers from additional OSAT partners in Asia.\n\nWhile our principal test operations are performed at AMPI, additional test capabilities are available at our Manchester, New Hampshire facility, and a small portion of testing is outsourced, including the addition of OSAT partners in Asia as part of our regional manufacturing strategy.\n\nWe are committed to manufacturing products of the highest quality and performance. We strive to have a “zero-defect” quality culture focused on meeting or exceeding demanding high-temperature automotive quality standards. We strive to comply with industry standards such as IATF 16949:2016 (the automotive sector-specific quality management system standard) and ISO 14001 (a voluntary standard for environmental management published by the International Standards Organization), and we also strive to comply with ISO 26262 ASIL product development standards, RoHS and similar environmental product requirements. Leading global automotive, industrial, and consumer manufacturers regularly audit our facilities for compliance with these standards, as well as with their own customer-specific standards."}