Tell us about the origins of TE Circuit Protection.
In the early-1980s, Raychem Corporation's Circuit Protection division introduced the first commercial offering of a polymeric positive temperature coefficient (PPTC) device, the original PolySwitch product. An early application for the PPTC device was to help protect Kodak batteries. By the mid-80s, the company expanded its deep materials science expertise to develop a line of telecom devices that helped improve safety and reliability for AT&T network and customer-premise equipment.
Raychem next became part of Tyco Electronics and, in 2011, Tyco Electronics was rebranded as TE Connectivity. This name was chosen to better reflect the products and solutions we bring to our customers. TE Connectivity connects and protects the flow of power and data inside millions of products that consumers and industries use every day. All around the globe; from smart phones to satellites, automobiles to airplanes, dishwashers to data centres, we're in it.
Today we continue to collaborate with leading electronics OEMs to develop solutions for emerging technologies and work closely with regulatory agencies to help develop the standards that help improve safety in electronic equipment. Coming full circle, we have seen the emergence of international standards that mandate resettable circuit protection, specifying PPTC technology as an appropriate solution.
Where does TE Circuit Protection fit into the TE Connectivity structure?
TE Circuit Protection is a business unit within TE Connectivity, which is a US$14.3Billion global provider of engineered electronic components for thousands of consumer and industrial products.
TE Circuit Protection has a dedicated website at http://www.circuitprotection.com/ where our customers can find online tools and information about our products and the markets we serve.
How closely does TE Circuit Protection work with other companies in the TE Connectivity business?
Circuit protection solutions are naturally synergistic with other TE business units. TE Circuit Protection provides overcurrent and overtemperature solutions in applications where our sister businesses focus, including consumer devices, automotive and industrial products. Our continued commitment to invest in R&D means that we are continually looking at new products that can integrate our core circuit protection technology with other engineered products from TE.
What are the main applications for TE Circuit Protection products?
TE Circuit Protection devices are found in countless products that we use every day, from our smart phones and vehicles to our televisions and air conditioning units. To date, billions of TE Circuit Protection devices have been integrated into electronic products in the automotive, multimedia, telecom, portable device, appliance and lighting markets - helping protect them from damage caused by overheating, overvoltage and overcurrent faults.
We continue to develop products that address new and emerging trends. For example, our MHP (metal hybrid PPTC) device can be used to help protect lithium-ion battery applications such as electric vehicles (EVs). We also provide protection devices used in solar and wind power applications, LED lighting, ultra-slim mobile devices and other new technologies.
Are there any key geographical markets for the company's products? Are they marketed and sold worldwide?
We ship products to approximately 1000 customers around the world, with nearly 85% of our business located in Asia.
Does TE Circuit Protection sell direct to customers or is there a mix of direct and the distribution channel? Do you work with local or global distributors?
Over the years we have established very close relationships with key OEMs in the markets that we serve. We partner with our customers on new product designs to help them solve tough circuit protection challenges, while enabling them to become standards-compliant by helping them improve the reliability of their products.
We also have very good relationships with distribution partners across the globe. Without the support of our channel partners, we would not be able to provide the high level of service to our customer base that we currently offer.
Where does the company undertake its research and development? How many people work in R&D for the company?
We maintain R&D facilities in the U.S., Europe and Asia. We expect China to continue as a high-growth market for our products. Our commitment to the region is evidenced by the fact that, of our 2,100 TE Circuit Protection employees, nearly 1,600 are located in China.
Another one of the world's most dynamic markets is India, where the shift from software development to electronics manufacturing is being driven by strong regional incentives. We have recently opened application engineering and sales support offices in Bangalore to help us partner with our customers in this region.
These initiatives reflect our business strategy of keeping development engineering close to where our customers are designing. The combination of global infrastructure and local support - be it in product development, applications engineering, technical support or manufacturing - allows us to help our customers design their next generation of products, reduce their time to market, and lower their production costs.
Where are TE Circuit Protection's main manufacturing facilities? Do they specialise in different products and technologies?
We have manufacturing plants in Menlo Park, CA; Tsukuba, Japan; and Kunshan, China.
With our localised understanding of these regions, we understand the manufacturing challenges which are unique to each region. For example, Japan has strict consumer requirements that end-products made in Japan must be composed of components also made in Japan. Also, we have learned that after the earthquake in Japan and flooding in Thailand, OEMs prefer that their suppliers have a diversified manufacturing capability. In the long term, we expect that manufacturers will emphasise the need for multiple sources of components to be better prepared to survive these natural disasters.
This time last year the company launched its reflowable thermal protection device, the first of its kind. What has been the market response to the product?
We introduced the Reflowable Thermal Protection (RTP) device in November 2011. This technology represents an exciting new technology platform and not simply a drop-in replacement product. Since its introduction, the RTP device has been well received and continues to grow in popularity as people learn about this new technology. We have seen revenues increase as our customers come to understand its unique benefits over existing solutions, such as typical thermal fuses. As of this writing, we have secured over 4 million units of designs in just the last 30 days.
The RTP device is an SMD device which can be reflowed at high temperatures. Current customers are mainly automotive manufacturers, where power component failure is a common problem. However, as market awareness grows, we expect the RTP device will be used in many types of applications, including telecom, industrial and lighting products.
What is the background to the Circuit Protection University? What are its aims?
Circuit Protection University (CPU) was developed by our experienced technical staff to help colleagues, customers and distributors understand the fundamentals of circuit protection and apply these concepts to everyday challenges. The virtual training programme utilises examples and analogies to explain how overcurrent and overvoltage protection devices help prevent injury, protect electrical equipment from damage, and help maintain uninterrupted device performance. From electrical basics to detailed descriptions of circuit protection strategies, CPU provides a suite of practical, self-paced tutorials, videos and links to other useful information.
How was the market for TE Circuit Protection products in 2011? How do you see business in 2012?
In 2011, two major challenges impacted the electronics industry. The disasters in Japan resulted in supply shortages in an industry that had already been reducing channel inventories. There were also downward revisions in GDP and uncertainty in future market demand resulting from sovereign debt concerns and China slowing its growth to combat inflation.
Looking forward to 2012, we see that the increasing amount of electronics in automobiles is creating the need for new kinds of circuit protection solutions. LED lighting is another important growth sector, where robust circuit protection is required to optimise system performance and lifecycle. The proliferation of smart mobile appliances with increased power densities, faster processors, and extended battery life is another megatrend that presents many opportunities for circuit protection device manufacturers. Extremely slim sizes, increased sensitivity, and faster connector speeds will make protection solutions even more challenging, but offer exciting new opportunities in 2012.