[Executive Interview] Acquisition of C&K Switches completes product line, Littelfuse is optimistic about the future of the Chinese market
Electronic Innovation Network
Author: Zhang Guobin
Littelfuse is the world's No. 1 circuit protection brand with nearly a century of history. Littelfuse provides the most diverse and broadest circuit protection product portfolio. Littelfuse products are present in almost all of our surrounding electrical products. On April 8, 2022, Littelfuse announced that it would acquire a leading designer and manufacturer of high-performance electromechanical switches and interconnect solutions founded in 1928 for US$540 million. C&K Switches. After the acquisition, what new layout will Littelfuse have? Electronic Innovation Network and other media interviewed Cha Yong, Vice President of Sales of Littelfuse China Electronics Department, to learn about Littelfuse's future layout after the acquisition.
Cha Yong said that Littelfuse and C&KSwitches have similar market layouts in the industrial, communications and automotive fields. Their businesses are highly complementary and will provide more comprehensive solutions after the acquisition. “This is a 1+1>2 acquisition. Littelfuse’s acquisition C&K is firstly interested in C&K’s technical strength, and secondly, it is aware of the changes in customer demands brought about by changes in market orientation,” Cha Yong emphasized.
"The acquisition is also conducive to Littelfuse's layout in some emerging fields." Cha Yong pointed out, "There are also some fields that we are very optimistic about, such as new energy, energy storage and HVAC. These markets were more popular in Europe and the United States earlier, and now they are more popular in the domestic market. "
He specifically pointed out that China's electric vehicles now account for more than 60% of global electric production, but there are actually many new challenges in the current electric vehicle field. For example, in the past, car fuses were all low-voltage types, but now with the popularity of electric vehicles in 800V high-voltage applications, high-voltage fuses need to be popularized. "We are working with the AEC organization to formulate an international standard for high-voltage insurance for commercial use of electric vehicles. This standard is expected to be released in the middle of next year." He revealed.
Cha Yong said that Littelfuse currently has 8 factories in mainland China, located in Wuxi, Suzhou, Kunshan, Shanghai, Dongguan, Guizhou, Zhongshan and other places. Many of Littelfuse's R&D and production are in China, and it continues to increase its R&D investment in China, because Littelfuse We are optimistic about the future of the Chinese market. "We attach great importance to the Chinese market. As can be seen from our investment in China, some local companies are also catching up in the field of fuses. I think normal competition will help the growth of the industry. We welcome competition because Only competition can drive the improvement of the entire industry!" he said.
Regarding the current downturn in the semiconductor industry, he said that although the downward trend will continue, Littelfuse believes that it will soon reach an inflection point. The entire market is currently declining, especially the consumer market. It is expected that consumer products will continue to decline in the first quarter of next year. Fortunately, Littelfuse has a comprehensive layout. The high prosperity in the renewable energy, energy storage electric vehicle industries and industrial automation fields will make up for the downturn in the consumer market, and overall performance will show a growth trend.
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