Since taking office over five years ago, Marc Biron has seen it all! From the Covid crisis (with effects on the company’s entire supply chain, particularly active in Asia, and the shortage of electronic components), war in Ukraine (where Melexis has a development site), the trade war triggered by Donald Trump, the crisis in the automotive industry (almost 90% of Melexis’ revenue comes from this sector), to the surge in energy prices due to attacks against Iran… This indigestible cocktail eventually weighed down on the continuous growth of a high-tech company employing over 2,000 people, with around 600 in Ypres and Tessenderlo, facing formidable competitors. However, as Marc Biron explains in an interview with “La Libre,” Melexis is not lacking resources or ambition.
One of my friends at the University of Liège, Vincent Hiligsmann, worked at Melexis. After my doctorate, I got in touch with him, and that’s how I joined Melexis (established in 1989). Today, Vincent holds the position of Chief Innovation Officer, and we both sit on the group’s board of directors.
No, not at all. It was Françoise Chombar, who was CEO for nearly 20 years, who made me the offer just before the Christmas holidays in 2020. She explained that she wanted to take a step back and that the Melexis board had thought of me as her successor. I was completely taken aback! It was unexpected. But after some thought, I accepted.
Appointing a Walloon to lead a Flemish technological flagship, especially one listed on the stock exchange and a member of the Bel 20, is unusual. How was this perceived within the company? It was neither a problem nor an advantage. One of Melexis’ great strengths is its emphasis on diversity in its teams. Françoise Chombar, who is now our “chairwoman” (she emphasizes the term a lot), pays great attention to this. Melexis has 53 different nationalities, with over 30% women, which is high for a technology company. There is also great diversity in employee profiles to ensure not only engineers.
“If there were only people like me in the company, we wouldn’t innovate as we do.” This often-joking but serious statement highlights the importance of diverse origins, genders, and profiles at Melexis. This diversity plays a crucial role in fostering innovation and setting Melexis apart from its competitors.
If we consider Melexis’ recent growth, reaching over one billion euros in revenue from 2020 to 2023, there has been a change since 2024, with last year’s revenue dropping by 10% to 839.6 million euros. Is this downturn solely due to the global crisis affecting the automotive sector (where Melexis still generates nearly 90% of its revenue)? We are going through a more challenging period. While we haven’t reduced our workforce, cost reduction is necessary. Globally, the number of cars produced has remained relatively stable, with a peak in 2017-2018 at 94 million cars, then stabilizing around 86-87 million. However, Melexis’ business is strongly tied to the electronic components and sensors in cars. The more electronics a vehicle has, the more Melexis content there is.
Considering the electrification of vehicles, shouldn’t Melexis be benefiting from this trend? If we look at the “powertrain,” which propels the vehicle, there’s not much difference between electric and traditional cars (gasoline or diesel). They both use similar Melexis products. However, electric vehicles are typically built on more modern platforms with increased electronics. We are seeing a shift as major automakers are enhancing non-electric vehicle platforms with more electronics. So, the playing field is becoming more balanced for us.
With the stagnant production of cars globally and the increasing electronic component intensity in all types of vehicles, why has Melexis seen less success in the past two years? Several reasons account for our struggles. Firstly, the automotive and semiconductor industries experienced a “toilet paper effect” during the Covid crisis, where all industry suppliers stocked up from 2022-2023. We benefited initially, but by 2024, this effect wore off, leading to fewer orders. Additionally, the shift in business focus to China, where we face aggressive price competition from new competitors, has intensified the challenge.
What is China’s role in Melexis’ operations? China accounts for 30% of our business, with the rest of Asia (Japan, South Korea, and India) also at 30%. Europe holds 30%, and the USA has 10%. We have observed a decrease in the European share and an increase in the Chinese share. This shift requires us to work on costs to remain competitive and attract new clients in the Chinese market.
In mid-March, you announced the creation of Melexis Integrated System, a fully autonomous foreign-owned company based in Shanghai. Why the change in strategy? The landscape has evolved. Previously, our Chinese clients were European customers like Bosch or Valeo with a presence in China. Now, we have Chinese clients too, intensifying the competition among equipment suppliers. This change drives our focus on costs and innovation. In 2025, Melexis launched nineteen new products in the market, with plans to introduce twenty-two this year to showcase our innovation strength.
Setting up a “China for China” company was an adaptation to the increased autonomy and insight the local team possesses to drive business growth effectively. They understand the market, client needs, competition, and product development requirements, unlocking the potential for business expansion. This shift from a Chinese entity relying on Belgian direction to an autonomous structure better aligns with client demands for locally sourced components and solutions. This strategic move aims to secure a competitive edge in the Chinese market.
Facing Chinese price aggression, innovation is key for Melexis to remain competitive and regain growth momentum. Indeed, we invest 14% of our revenue in R&D, focusing on innovation not only in automotive but also in diversification across sectors such as robotics, digital health, and alternative mobility solutions.
It has been stated multiple times that robots are the vehicles of the future for Melexis. The next five-year plan in China includes robotics as a key technology focus. The demand for robotics in various industries is burgeoning, offering significant opportunities for us to provide value through our technology. We anticipate generating €100 per robot through our innovative solutions, especially in robotic joints where demand is high. Robots are poised to become a substantial business, and Melexis is well-positioned to capitalize on this trend, similar to how we navigated the evolution in automotive electronics previously.
The recent drop in Melexis’ stock price, falling 15% after the 2025 results announcement, raised concerns among investors. Were their worries justified? We anticipated a negative response to our annual results, but our board focuses on long-term strategies, unwavering in our commitment to innovative solutions with a sustainable impact. While the short-term reality is challenging, our conviction in the long-term effectiveness of our current initiatives remains steadfast.
Known for generosity towards its shareholders, Melexis maintained its dividend at 3.70 euros for 2025 despite disappointing results. What’s the reasoning behind this decision? It reflects our confidence in the company’s future trajectory. By staying committed to consistent growth, we aim to send a positive message to the market and shareholders.
From 2021, Melexis’ stock price has halved. How do you explain this decline compared to the work done by Melexis over the past five years? Market fluctuations are part of the game. Analysts previously suggested Melexis’ stock was overvalued at €100, and now, at €55, their opinions differ. However, my focus is on company growth and profitability, not stock prices.
Expecting a return to growth in 2026? We anticipate stabilization in the first half of the year compared to the first half of 2025, with hopes for a recovery in the second part. While specific targets for 2026 are yet to be set.
Is Melexis affected by the Middle East conflict and the significant rise in energy costs? While we are not heavy energy consumers, our suppliers are impacted, indirectly influencing us. Additionally, this situation affects consumer confidence.
Context: Marc Biron, the CEO of Melexis, discusses the challenges and opportunities facing the company in various markets, especially amidst global economic changes and technological shifts. Fact Check: Melexis is a semiconductor company based in Belgium, specializing in innovative technologies for the automotive industry and beyond.
