Vishay Intertechnology Inc., which has grown to a $1.7 billion company through acquisition, will continue to pursue that strategy to fill out its product portfolio, said chairman and chief executive Felix Zandman at a recent trade show here.
The company is looking to add to IGBTs, aluminum capacitors, non-linear resistors, and power MOSFETs with high resistance values to its product lineup, he said.
"Our strategy is to be a single manufacturer for OEMs to come to as a complete discrete components manufacturer," he said.
Zandman expects the passive components industry to continue to consolidate, citing Siemens' planned spin-off of its components business, Philips' recent sale of its non-ceramic passives business to Compass Partners, and Motorola's discrete semiconductor business that is said to be up for sale.
While Vishay's sales have climbed by 39.6%, to $762 million in the first six months of 1998 from $546 million in the first six months of 1997, the company continues to cope with price erosion and overcapacity, particularly in its passive-components business, Zandman said.
"Prices have been dropping rapidly," forcing the company to streamline operations and move production to lower-cost, off-shore facilities in China, Taiwan, and the Philippines, he said.
However, Vishay's active-component lines, which it acquired when it bought Temic Telefunken Microelectronic GmbH, are "doing well."
The Malvern, Pa.-based company is also sticking to its distribution strategy of moving more direct customers through the channel, and hopes to increase its percentage of sales through distribution in Europe from 25% to 50%, Zandman said.
Vishay recently expanded its relationship with Marshall Industries by authorizing Marshall to distribute its entire product portfolio-including passive and active components- in North America. Marshall had only carried Vishay's discrete-semiconductor lines.
Marshall will also carry Vishay in Europe through Sonepar Electronique International and in Southeast Asia through Serial System Ltd.