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FAE
I too used to have serious concerns about Maxim as a supplier. Of course, ...
davejor
Like the products, worst supply chain in history. I will never specify Maxim ...
Maxim tips ICs as it unveils the 'new Maxim'
Mark Lapedus
9/30/2010 2:08 PM EDT
SUNNYVALE, Calif. – During an event here this week, analog chip maker Maxim Integrated Products Inc. unveiled what it called ''the new Maxim’’ or ''Maxim 2.0.''
Actually, ''Maxim 2.0,’’ the company’s business strategy, was set in motion back in 2000 and expanded in 2007. As part of the evolving and ongoing plan, the analog chip maker has remade the company-and shaken up the corporate culture.
It has expanded its product focus, reduced chip and process development times, embraced foundries and is on an acquisition spree. At the event this week, in which the company had a breathtaking 24 separate presentations over a four-and-a-half hour span, Sunnyvale-based Maxim not only discussed its strategy, but it also tipped a number of new products.
The company is quietly devising a range of devices, including a new battery management device for electric cars, a Class D audio amplifier, a MEMs oscillator and a power line communications device.
Tunc Doluca , president and chief executive of Maxim, said the company follows what it calls a ''balanced business model,’’ in which the chip maker continues to expand beyond its industrial analog roots and invests in new, high-growth markets.
Maxim-which has bought six companies in the last three years-continues to look for acquisitions that are ''adjacent’’ or fit within the company’s product strategy, Doluca said during an interview after the presentations.
On the business front, he remains upbeat despite signs of a slowdown in the IC market. The company is seeing ''some weakness’’ in the PC and LCD segments, but the rest of company’s markets ''look robust,’’ he told EE Times.
But it has been a roller coaster ride for Maxim and its analog rivals. 2009 was a down year for the steady analog market. But then, in early 2010 or so, the analog crowd, including Maxim, saw a surge in demand and experienced shortages and long lead times.
Now, there are signs of an IC lull. ''We believe we are past the fifth inning of a preannouncement window with a few more candidates lowering their guidance into the end of September,’’ said Vernon Essi, an analyst with Needham & Co. LLC, in a recent report. ''Specifically, we believe Maxim, Intersil and O2Micro are likely candidates to preannounce given their high concentration of revenue exposure to computing and consumer.’’
Analog is ''holding steady’’ despite the lull, said Susie Inouye, an analyst at Databeans Inc., but “obviously, the third quarter is softer.’’ The IC market is projected to grow 24 percent in 2010, she said. Of that, the analog market is expected to grow 30 percent this year, she added.
Another challenge for Maxim and others is how vendors will react to Texas Instrument Inc., which recently open the world’s first 300-mm analog fab. ''TI is bringing on lots of 300-mm and other capacity, driving low cost advantages to hit the likes of National, Maxim, ADI, Intersil, and to a lesser extent, Linear,’’ said Craig Berger, an analyst with FBR.
Actually, ''Maxim 2.0,’’ the company’s business strategy, was set in motion back in 2000 and expanded in 2007. As part of the evolving and ongoing plan, the analog chip maker has remade the company-and shaken up the corporate culture.
It has expanded its product focus, reduced chip and process development times, embraced foundries and is on an acquisition spree. At the event this week, in which the company had a breathtaking 24 separate presentations over a four-and-a-half hour span, Sunnyvale-based Maxim not only discussed its strategy, but it also tipped a number of new products.
The company is quietly devising a range of devices, including a new battery management device for electric cars, a Class D audio amplifier, a MEMs oscillator and a power line communications device.
Tunc Doluca , president and chief executive of Maxim, said the company follows what it calls a ''balanced business model,’’ in which the chip maker continues to expand beyond its industrial analog roots and invests in new, high-growth markets.
Maxim-which has bought six companies in the last three years-continues to look for acquisitions that are ''adjacent’’ or fit within the company’s product strategy, Doluca said during an interview after the presentations.
On the business front, he remains upbeat despite signs of a slowdown in the IC market. The company is seeing ''some weakness’’ in the PC and LCD segments, but the rest of company’s markets ''look robust,’’ he told EE Times.
But it has been a roller coaster ride for Maxim and its analog rivals. 2009 was a down year for the steady analog market. But then, in early 2010 or so, the analog crowd, including Maxim, saw a surge in demand and experienced shortages and long lead times.
Now, there are signs of an IC lull. ''We believe we are past the fifth inning of a preannouncement window with a few more candidates lowering their guidance into the end of September,’’ said Vernon Essi, an analyst with Needham & Co. LLC, in a recent report. ''Specifically, we believe Maxim, Intersil and O2Micro are likely candidates to preannounce given their high concentration of revenue exposure to computing and consumer.’’
Analog is ''holding steady’’ despite the lull, said Susie Inouye, an analyst at Databeans Inc., but “obviously, the third quarter is softer.’’ The IC market is projected to grow 24 percent in 2010, she said. Of that, the analog market is expected to grow 30 percent this year, she added.
Another challenge for Maxim and others is how vendors will react to Texas Instrument Inc., which recently open the world’s first 300-mm analog fab. ''TI is bringing on lots of 300-mm and other capacity, driving low cost advantages to hit the likes of National, Maxim, ADI, Intersil, and to a lesser extent, Linear,’’ said Craig Berger, an analyst with FBR.
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kdboyce
10/1/2010 1:18 AM EDT
Semiconductor companies have to "re-invent" themselves from time to time if for no other reason than shifts in markets and competition.
The "versions 2.0 and 3.0" that currently exist in some companies can substantially have the desired effect, but usually by sacrificing something else the company may be well known for.
Changing how the company is perceived by its existing customers while making any changes in direction is very challenging and often adversely affects overall current business more than, and faster than, intended.
The trick in all these re-inventions is to do them slow enough so as to not destroy or damage your existing business while you transition into the desired new business model...hopefully bringing many of your existing customers along with you. Yet, you need to do them fast enough so that your shareholders and employees see the business opportunities and plans unfolding as intended, and expanding the growth of the company.
If there was a guaranteed success formula for doing this, every CEO would be doing it routinely.
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elctrnx_lyf
10/1/2010 2:42 PM EDT
This is one of the few big news articles I've seen at eetimes. Thanks to Lapedus for putting up the complete stuff. Maxim is definitely reinventing itself to expand their products portfolio in a wide range with the recent acquisitions.
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Mark Wehrmeister
10/1/2010 3:01 PM EDT
It's nice to see Maxim reinventing themselves for the future. They have been one of my favorite semiconductor companies since they make products that interface with the real world. The world is analog, not digital, and without Maxim's contribution in this space, many of the products we all use everyday would not have been possible.
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goafrit
10/1/2010 4:27 PM EDT
The competition will not disappear by making press statements. It only motivates the other part. Let me innovate. That is what matters. Innovation needs to be in their DNA to succeed.
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Warren
10/1/2010 4:53 PM EDT
...and your thoughts on Maxim's DNA and/or innovative abilities (as compared to the other part)?
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goafrit
10/5/2010 6:55 PM EDT
I think the firm does not come out clear as being a leader. Their products are not that superior. Compared to TI, I think they have a long way to go. I always think it is second-tier, maybe, it is me. This firm needs scale to even lead in the metering sub-sector.
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mark.lapedus
10/1/2010 7:19 PM EDT
Maxim thinks smart meters will be a big deal. Anybody agree or disagree?
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sranje
10/2/2010 11:20 PM EDT
Mark, I believe that Maxim is correct -- smart meters will be a "big deal" (in a very competitive global market). They are an important ingredient of Maxim’s major expansion into smart power grid applications.
The smart power grid strategy includes: (1) powerline communications (PLC), (2) power-grid monitoring/protection, and (3) smart metering.
The smart power grid targets an infrastructure market rather than an end-equipment segment alone. This provides a larger, global scale market opportunity for a range of products fitting into a range of application solutions. As a result, Maxim intends to achieve a high degree of leverage for its analog/mixed-signal and microcontroller products.
Advanced metering infrastructure (AMI) brings energy consumers into the smart grid and provides a critical interface between utilities and end consumers; automatic meter reading (AMR) capability provides a range of benefits to both utilities and consumers. Maxim's SoC metering solutions enable designers to integrate high-level functions such as power analysis, advanced reporting, and tamper detection. These ICs are supported with a broad range of the company's products including voltage references, timekeeping devices, and RF devices
For example, for the wireless smart meter application Maxim offers a 900MHz transmitter family of products operating in the ISM band over one mile range. This range could be further extended using the company's silicon bipolar power amplifier. Maxim offers an electricity-metering AFE (analog front-end) device integrating the company's DSP MAXQ core and an 8-channel A/D converter. The company has recently introduced two more products featuring dual-core, 32-bit DSPs.
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rommel.ratilla
10/2/2010 5:29 AM EDT
agree,,,,,,,,,,,
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Gavin K Ho
10/2/2010 1:59 PM EDT
Could Maxim be the first to make some very interesting MEMS oscillators?
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sranje
10/2/2010 9:07 PM EDT
An excellent article - a "New Maxim" has indeed emerged.
For more detailed discussion please also see:
http://www.petrovgroup.com/pdfs/June%2011%20-%20Maxim%20makes%20complete%20U-turn%20-DT.pdf
http://www.petrovgroup.com/pdfs/Maxim%20Power%20ICs%20Cover.pdf
http://www.petrovgroup.com/pdfs/Abstract-Maxim%20Power%20IC%20Strategy2.pdf
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SusieInouye
10/4/2010 12:31 PM EDT
Market share figures are for general purpose analog.
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numberone2
10/6/2010 5:12 PM EDT
Unless there is a discussion about how they are revamping their supply chain, it sounds like the new Maxim is undertaking business as usual by announcing terrific sounding parts that will not be available to anyone outside of their 30 largest customers. As it is, me and most of the people I know will not even consider Maxim, and nothing in this article compels me to rethink that.
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jessebot
10/7/2010 3:24 AM EDT
To numberone2: AMEN. I have been burned by maxim several times for availability, to the point of bringing my business to a screeching halt. I bought likely counterfeit/rejected parts from China (30% failure rate) because I was desperate for a solution to MAXIM's PERSISTENT SUPPLY PROBLEM. I will *NEVER* use maxim *EVER AGAIN*. The offending, still 18-week leadtime parts have been designed out. GOODBYE MAXIM and good riddance.
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Dan360
10/7/2010 9:09 AM EDT
Maxim has an excellent engineering team and a variety of interesting niche products. However I also have been burned badly by Maxim's supply chain. I will consider Maxim products only as a second source. "Maxim 2.0" provides no insight that they are addressing the supply chain problem or even care. The only time I really see an Maxim rep is during a recession, and yes they showed up in May of 2009.
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davejor
10/28/2010 9:13 AM EDT
Like the products, worst supply chain in history. I will never specify Maxim products nor allow any product containing Maxim products in any of our production or designs. Maxim has badly burned many companies beyond belief. I was looking for some sign of change, but the comments on fab reducing costs and nothing about improving supply chain gave me no confidence. It's clear they are doing great as a business, so there's no need really become a "new" Maxim.
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FAE
11/11/2010 6:27 PM EST
I too used to have serious concerns about Maxim as a supplier. Of course, essentially any supplier will have their battles with occasional lead-time challenges. Over the last three years, designing (and supplying) through Maxim has been nothing but positive. Maxim was recently recognized by NEDA as "Manufacturer of the Year". http://pr.woodstockwire.com/?p=1580
No supplier is ever perfect but I feel that Maxim is unique as they clearly recognized their historic supply chain "challenges" and put their best efforts and intentions into improving the customer experience.
From my seat, they care and are on the right path. Congratulations Maxim.
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