How has the blueprint of Cirrus Logic changed in the 25 years since you joined?
When I joined Cirrus Logic in 1999, the company was still finding its footing, pursuing various markets and technologies. Initially, Cirrus focused on building components for personal computers, acquiring technologies to expand its portfolio, including a startup called Crystal Semiconductor, known for its analog and mixed signal technology. This specialization became a significant part of Cirrus Logic's identity, shaping our approach and culture over the years.
Over time, our focus shifted to low-power signal processing and data conversion for battery-powered consumer electronics. We anticipated the rise of mobile and consumer products requiring efficient audio processing, which became central to our growth. Celebrating our 40th birthday this year, Cirrus Logic has evolved into a leading player in high-performance audio and signal processing, diversifying into haptics, sensing, camera, battery, and power technologies to maintain our growth and relevance.
Could you give us a practical example of how you have worked with a more consumer-facing partner to bring their product to market?
We aim to partner with the leaders in each market we choose to address. In consumer markets, being a predictable and innovative partner is crucial and we have demonstrated for nearly 20 years now we are among the best suppliers in this regard. As cellular phones evolved to be entertainment devices more than basic devices that can do calls and emails, the top brands in the world turned to Cirrus to provide cutting edge audio and voice technology to elevate user experiences and extend battery life. Given the long development cycles for new semiconductors and ultimately seeing these chips in the hands of a consumer, we partner with like-minded customers to drive innovation. We have partnered with the world’s leading flagship smartphone manufacturer to do just this over many product generations, including developing high-fidelity headphone and speaker amplifiers in parallel with ultra-low-power audio and voice data converters and signal processing engines that enabled first of its kind adaptive, active noise cancellation.
Could you explain Cirrus Logic's growing footprint in the PC and automotive markets?
A significant portion of our business comes from smartphones, where we have established a strong position in audio, and more recently haptics, cameras and power. However, we see opportunities beyond smartphones, especially in response to the growing demand by leading laptop manufacturers for better audio and voice experiences in remote work tools like Zoom, Teams and WebEx. Many users were dissatisfied with the audio quality and battery life of their machines with extended use of these tools during the pandemic, presenting a clear opportunity for us. We have collaborated closely with Microsoft and Intel to develop reference designs that help customers bring products to market faster. These designs initially focused on improving audio performance while lowering power consumption, and the results are compelling. We have extended this reference design collaboration to now include high-efficiency power conversion IC’s as we see more AI-enabled laptop platforms coming to market that require more processing power, placing additional strain on battery life.
In the automotive space, we have a long history of providing high-performance mixed-signal solutions. Our audio and precision clocking technologies are already present in many leading car brands. As cars evolve, especially with technological advancements, there is a natural opportunity for us to re-engage and enhance performance and user experience leveraging the breadth of our audio and high-performance mixed-signal technology portfolio. We see many disruptions in the electronics architecture of cars on the horizon and are exploring other emerging spaces, focusing on improving consumer experiences while contributing to a more sustainable future.
Despite a record financial year, what keeps you up at night in the context of Cirrus Logic?
Several factors keep me up at night. One is our mission to build on our core audio business by expanding into more mixed signal and analog technologies, especially in markets beyond smartphones. Developing new businesses in new markets requires time, patience, compelling and/or disruptive solutions, and strong customer relationships. Ensuring we have the right teams and the persistence to see these initiatives through is critical.
Another significant concern has been the global supply chain challenges over the past few years. The semiconductor industry has faced unprecedented supply chain constraints, exacerbated by geopolitical and trade-related issues. Ensuring our supply chain is resilient and diversified is crucial, as is maintaining strong relationships with our foundry partners. This has been one of the hardest challenges we've faced, but it's essential for our long-term success and ability to ensure customers can rely on Cirrus for both innovative products and a highly effective supply chain they can trust to deliver.
As a fabless company, how do you balance geopolitical risks with maximizing technological advancements for a global market?
Balancing geopolitical risks while advancing technology is indeed tricky. Our focus remains on innovation in chip design and partnering closely with key supply chain partners. As mentioned, geographic diversity and optionality in our supply chain is an important strategic initiative for Cirrus, and that is only amplified by the challenges the industry faced over the prior few years. As a fabless company, we don't directly benefit from initiatives like the CHIPS Act, as that is targeted at US domestic manufacturing, which presents challenges when competing with companies receiving such funding. However, we hope to see long-term opportunities in these investments, potentially offering us more supply chain options and resilience.
We're committed to maintaining a diverse and resilient supply chain while pushing the boundaries of signal processing technology. It’s a delicate balance, but our strategy is clear: innovate and ensure supply chain stability to stay competitive in a global market.
What does the next chapter hold for Cirrus Logic, particularly with your new technologies like custom boosted amplifiers and 22 nanometer smart codecs entering the market?
The next chapter for Cirrus Logic involves significant advancements in our technology portfolio with an aim to expand our opportunities and grow new businesses. We are ramping mass production on a 22-nanometer technology node, a significant step for our high-performance analog and mixed-signal capabilities. While this might seem modest compared to digital processors, it is a critical development for us, balancing performance, power efficiency, and chip size.
We are also investing in technologies beyond audio, such as haptics, cameras, battery and power management. These innovations are applicable to markets we currently serve, including laptops and smartphones. Our goal is to leverage our IP portfolio and silicon technologies to expand into new markets, driving growth beyond smartphones. Although we're not ready to announce specific new products, the future looks promising with our continued focus on enhancing consumer experiences through advanced technology.
