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Publisher's Executive Council Interview
December 31, 1969 |Estimated reading time: 6 minutes
This month's Publisher's Executive Council Interview features one of the industry's leading innovators: TT electronics' Steve Wade. SMT Magazine's Publisher's Executive Council consists of 33 electronics industry executives hand-picked by publisher Jim Collins. They share their expertise and insights with our editorial staff and act as a sounding board for new editorial concepts and projects. These individuals also contribute much to the industry in general, working as leaders within their companies.
SMT: To begin, please explain your company's position within the surface mount industry.
Wade: TT electronics has many divisions that remain in the forefront of SMT passives including IRC Advanced Film Div., manufacturer of thin and thick film tantalum nitride on silicon and ceramic; IRC Wirewound and Film Technologies Div., a pioneer in the industry in converting axial-leaded resistors to surface mount devices; BI Technologies Magnetics and Electronic Components Div., producing thick film arrays and surface mountable thin film networks; and Welwyn Components Ltd., manufacturing hybrid modules in a surface mount package. With 60 percent of our components being surface mount, we continue to support the development of new technologies for this industry.
SMT: What is TT electronics' fundamental business strategy?
Wade: Rather than emphasizing commodity products, TT electronics focuses on developing advanced technologies in applications where there is the potential for a value-add in the design and performance of passive components. TT electronics specializes in using our advanced technology as a basis for design solutions and enhanced performance in products such as our current sense resistors. Additionally, several TT electronics companies specialize in precision thin film, high-reliability tantalum nitride and nichrome.
SMT: The company's name was changed recently. What were the primary reasons behind this change, and how do you think the new name will help carry the company forward?
Wade: TT electronics changed its name in a move that better reflects the renewed focus of the combined businesses on advanced electronics and electrical technology. The name change will better reflect our core activities in electronics. The new business structure provides all the business units a common identity to present this combined product offering for their customers. The new corporate identification will have the effect of helping major OEMs reduce their supplier base without compromising vendor selection.
Our product lines represent a comprehensive offering of advanced technology in resistive components, integrated passive devices, signal and power magnetics, trimmers and precision potentiometers, automotive position and temperature sensors, and power electronics assemblies and hybrids with global manufacturing capabilities and an extensive worldwide distribution and sales network. The new TT electronics is well placed to continue its expansion in global markets.
SMT: How has globalization of surface mount markets affected your technology and business decisions?
Wade: Although a lot of assembly is being done in the Far East, TT electronics believes that investing in automation for plants where engineering teams are located makes these facilities more efficient and reduces manufacturing costs. We have established some facilities in Barbados, Mexico and Malaysia for more labor-intensive manufacturing processes in addition to our manufacturing plants in Europe and the United States.
SMT: What is the most critical issue for component suppliers today?
Wade: Managing sales channels and tracking our designs through contract manufacturers (CM) and distributors is critical to our success. Especially following the inventory crisis, it is imperative that component suppliers within the industry adopt better forecast models to better predict the changes associated with the CM surge. Similarly, it is fundamental that suppliers learn to interact with CMs and integrate them into distribution channels.
Designing new products for new applications such as the development of passives capable of meeting the latest high-frequency requirements also remains critical.
SMT: What affect do you think the resistor on metallic substrate technology will have on the surface mount industry?
Wade: This technology enables design engineers to put more power in circuits and enhance the thermal management of circuits. It is better suited to high-temperature/harsh environments and can replace a lot of ceramic substrate technology because of its strength, power capabilities and heat dissipation. IRC's Advanced Film Div. has developed an economical surface mount thick film resistor on aluminum for applications in need of a high thermal transfer, such as automotive, while Welwyn and IRC's Wirewound and Film Technologies Div. have developed a thick film on steel substrate to dissipate more power, making it useful in dynamic braking applications.
SMT: How have your customers' needs/ demands changed over the past five years?
Wade: Customers are looking for smaller, cost-effective and higher power components. This is enhanced by the rise in CM. Customer demands for voltage dividers and current sense devices have changed as a result of the move from analog to digital technology. The increased need for current sense is driven by customers' demands for battery-powered devices and for more rigorous power control in today's high-speed digital circuits. More specifically, as voltages drop and more fuel-gauging is required, the demand for current sense products increases. Passive components tend to follow the developments in semiconductor packaging.
SMT: What role does outsourcing play in the components arena? Do you see that role expanding in the next few years?
Wade: TT electronics has seen a dramatic increase in CM business as OEMs outsource for manufacturing. We have dedicated sales efforts to contract manufacturing to accommodate this tremendous growth. CMs are far more sophisticated now. As a result, IRC has increased application support at CM facilities.
SMT: What has most driven developments in component capabilities? In material characteristics? In devices?
Wade: Customer requirements have driven the move to silicon-based networks, and the need for smaller, faster, more economical components has driven the development of component design. As frequencies increase, TT electronics has responded by developing high-frequency products to meet voltage control demands in higher speed processors and wireless portable devices.
SMT: Does TT electronics participate in industry standards development through consortiums or associations?
Wade: TT electronics participates in CARTS, ECA, EIA and IEEE.
SMT: How would you characterize business today?
Wade: The market is soft, however, it was saturated with a large inventory of components because of the continual changes in the computer and telecommunications markets. Customers' demands for short lead times on some device types still remain constant. Currently, TT electronics is experiencing a flood of new designs for surface mount products and continues to dedicate a significant effort to new product development.
SMT: Where is the surface mount industry headed over the next few years?
Wade: It is likely that we will see a trend toward more passive integration and a continual focus on miniaturization. Integrated components including both active and passive components in one monolithic device also will become more popular. Surface mount components will continue to evolve and there will be a decline in the use of through-hole mounted products.
SMT: What is the central message TT electronics would like to convey to the surface mount industry?
Wade: TT electronics will continue to support customers and assist them in product advancement by integrating advanced technology to meet their specific requirements. We are developing new products to support high-frequency application while continuing to provide advanced component technology for a wide spectrum of applications, and delivering products throughout the world. Because there is technology sharing between business units, TT electronics can support customers globally.