We design, develop and market analog and mixed-signal integrated circuits (ICs)
and other electronic components and circuitry used in high-voltage power conversion.
Our products are used in power converters that convert electricity from a high-voltage
source (typically 48 volts or higher) to the type of power required for a specified
downstream use. In most cases, this conversion entails, among other functions,
converting alternating current (AC) to direct current (DC) or vice versa, reducing
or increasing the voltage, and regulating the output voltage and/or current
according to the customer’s specifications.
A large percentage of our products are ICs used in AC-DC power supplies, which
convert the high-voltage AC from a wall outlet to the low-voltage DC required
by most electronic devices. Power supplies incorporating our products are used
with all manner of electronic products including mobile phones, computing and
networking equipment, appliances, electronic utility meters, power tools, industrial
controls, and lighting applications that utilize light-emitting diodes (LEDs),
and “smart-home,” or “internet of things” applications
such as networked thermostats, power strips and other building-automation and
security devices.
We also offer high-voltage gate drivers - either standalone ICs or circuit
boards containing ICs, electrical isolation components and other circuitry -
used to operate high-voltage switches such as insulated-gate bipolar transistors
(IGBTs). These combinations of switches and drivers are used for power conversion
in high-power applications (i.e., power levels ranging from a few kilowatts
up to one gigawatt) such as industrial motors, solar- and wind-power systems,
electric vehicles and high-voltage
DC transmission systems.
Our products bring a number of important benefits to the power-conversion market
compared with less advanced alternatives, including reduced component count
and design complexity, smaller size, higher reliability and reduced time-to-market.
Our products also improve the energy efficiency of power converters, helping
our customers meet the increasingly stringent efficiency standards that have
been adopted around the world for many electronic products, and improving the
efficacy of renewable-energy systems, electric vehicles and other high-power
applications.
While the size of our addressable market fluctuates with changes in macroeconomic
and industry conditions, the market has generally exhibited a modest growth
rate over time as growth in the unit volume of power converters has been offset
to a large degree by reductions in the average selling price of components in
this market. Therefore, the growth of our business depends largely on increasing
our penetration of the markets, that we serve and on further expanding our addressable
market. Our growth strategy includes the following elements:
Increase our penetration of the markets we serve. We currently address AC-DC
power-supply applications with power outputs up to approximately 500 watts,
and gate-driver applications of ten kilowatts and higher. Through our R&D
efforts, we seek to introduce more advanced products for this market that offer
higher levels of integration and performance compared to earlier products. We
also continue to expand our sales and application-engineering staff and our
network of distributors, as well as our offerings of technical documentation
and design-support tools and services to help customers use our products. These
tools and services include our PI Expert™ design software, which we offer
free of charge, and our transformer-sample service.
Our market-penetration strategy also includes capitalizing on the importance
of energy efficiency in the power conversion market. For example, our EcoSmart™
technology drastically reduces the amount of energy consumed by electronic products
when they are not in use, helping our customers comply with regulations that
seek to curb this so-called “standby” energy consumption. Also,
our gate-driver products are critical components in energy-efficient DC motor
drives, high-voltage DC transmission systems, renewable-energy installations
and electric transportation applications.
Increase the size of our addressable market. Prior to 2010 our addressable market
consisted of AC-DC applications with up to about 50 watts of output, a served
available market (“SAM”) opportunity of approximately $1.5 billion.
Since that time we have expanded our SAM to approximately $3 billion through
a variety of means. These include the introduction of products that enable us
to address higher-power AC-DC applications (such as our Hiper™ product
families, which address applications up to about 500 watts) and our entry into
the gate-driver markets through the acquisition of CT-Concept Technologie AG
in 2012. In 2016 we introduced the SCALE-iDriverTM family of gate-driver ICs,
which enables us to address applications between approximately 10 kilowatts
and 100 kilowatts, whereas previously our gate-driver products were primarily
for applications above 100 kilowatts.
Also contributing to our SAM expansion has been the emergence of new applications
within the power ranges that our products can address. For example, applications
such as LED lighting, “smart” utility meters, battery-powered lawn
equipment and bicycles, and USB power ports (installed alongside traditional
AC wall outlets) can incorporate our products; the increased use of electronic
intelligence and controls in consumer appliances has also enhanced our SAM.
Finally, we have enhanced our SAM by increasing the level of integration of
our products, which in turn increases their value. For example, our InnoSwitch™
ICs integrate circuitry from the secondary, or low-voltage, side of AC-DC power
supplies, whereas earlier product families integrated circuitry only on the
primary, or high-voltage side.
We intend to continue expanding our SAM in the years ahead through all of the
means described above.
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