Consolidation can be a challenge for both power supply makers and its customers. TDK has tackled this with an Advanced Technology centre to evaluate the different power technologies that emerge and how they could be used
“We opened the Advanced Technology Centre in Bristol and for us the advantage of opening that was we were approached by component manufacturers to look at their devices, from large global companies to small startups and we look at them on an equal basis,” he said.
“Most of the smaller guys tend to get acquired if they have a good product and so the supply chain is less of a worry. The remainder have to become experts in profitable niches as it’s hard to compete with those guys in commodity power. The smaller companies become localised producing semi-bespoke products to key customers.
So is TDK a buyer or a target? “At the moment we are status quo, a global manufacturer with R&D in all the key locations,” said Southam. “But TDK is good at changing their business model over the years and will always make acquisitions when it makes sense.”