How has Plasma-Therm evolved to meet the changing demands of today and tomorrow in a rapidly changing environment?
The semiconductor industry is indeed a rapidly changing environment. For the past 15 years, our strategy has been straightforward. We have concentrated on our customers and our team, believing that if we do right by them, the other stakeholders will be naturally taken care of. This approach has been instrumental in our growth through acquisitions and improved customer service.
At the highest level, we are in the business of enabling technologies that enhance the human experience. We build the technologies that allow our customers to produce devices such as glucose monitors, augmented reality systems, self-driving vehicles, and space communication tools. These are recent examples of the impact our equipment has. Over the past 50 to 100 years, we have seen a significant progression from basic transportation to advanced computing technologies. Our role is behind the scenes, making many of these advancements possible. We help bring these technologies to life, contributing to the rapid technological growth we witness today.
Could you discuss your acquisition strategy, particularly the recent acquisition of SRL in thin film equipment?
The semiconductor industry can be divided into two segments: 300 millimeter silicon and emerging markets. Our focus is on the emerging markets, including silicon carbide power devices essential for electric vehicles, photonics for augmented and virtual reality, and sensors necessary for autonomous driving. These emerging markets are where we see significant growth and opportunity.
Meeting the growing demand, especially in the U.S., is challenging but also a good problem to have. The pandemic has driven increased demand for semiconductor devices, and this demand continues to grow. By focusing on new and developing areas, we've been able to sustain double-digit CAGR growth for the last 15 years.
What are the key differentiators between the European market and the U.S. market, particularly following your recent acquisition of TFE in Italy?
The semiconductor industry began outsourcing to low-cost countries primarily for silicon manufacturing a couple of decades ago. However, the U.S. and Europe have remained active in the emerging markets sector. European companies like Bosch, ST, and NHP, and U.S. companies involved in GPUs and wireless applications, have always been active in these emerging areas.
The larger organizations in memory or logic sectors outsourced significantly but are now realizing the need to bring operations back to secure the supply chain. This shift is essential for a diversified and resilient semiconductor industry. Both the U.S. and Europe are now focusing on localizing their supply chains to ensure long-term viability.
With the rapid changes expected in the next 5 to 10 years, how do you see these changes impacting Plasma-Therm and your offerings?
Looking ahead, semiconductors will become even more integral to our daily lives. We see a future where devices powered by semiconductor technology will be ubiquitous, from wearable tech to smart home systems. Our focus on sensors and photonic technologies will drive this growth, ensuring we remain at the forefront of innovation and significantly impact how people experience their lives.
How has the CHIPS Act impacted your strategy for attracting talent, especially given the industry's talent shortage?
The CHIPS Act has certainly raised awareness about the semiconductor industry, making it more attractive to potential employees. Fortunately, in Florida, we have access to a talent pool from four major universities with strong material science and engineering programs. This local resource has mitigated the talent shortage prevalent in other parts of the U.S., ensuring a steady stream of qualified candidates.
Globally, the semiconductor industry is becoming more attractive as onshoring efforts increase. We are collaborating with local educational institutions like St. Petersburg College to develop talent and promote STEM education. By fostering these partnerships, we aim to raise awareness about the semiconductor field and attract more individuals to pursue careers in this vital industry.
How important is a secure supply chain in your competitive landscape, and how do you ensure it?
A secure supply chain is critical. Even a small component delay can cause significant downstream impacts, potentially costing millions. Therefore, maintaining strong relationships with suppliers and ensuring an integrated supply chain is vital. Our focus on local sourcing within the U.S. and Europe adds a layer of security. This strategic approach minimizes risks associated with international supply chains and ensures that we can meet our customers' needs without significant delays. This reliability gives us a competitive edge, as our customers can trust in our ability to deliver on time.
What can you share about Plasma-Therm's future, particularly regarding your inorganic strategy and upcoming milestones?
In the next 12 to 18 months, we will be launching several new products, expanding our technology portfolio significantly. This growth will enable us to better meet the increasing demands of the industry. Our strategy focuses on responding to this growth by working closely with our suppliers and customers.
We are well-positioned to double the company's size every few years, thanks to the robust demand and our proactive approach. Our plans involve continuous innovation and expansion, ensuring we remain a leader in the semiconductor industry and continue to drive technological advancements.
