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www.us-
tech.com IDT and ZMDI: CTO Sailesh Chittipeddi By Sailesh Chittipeddi, Vice President of Global Operations and CTO, IDT
pany ZMDI. Sailesh Chittipeddi, IDT’s vice president of global opera- tions and chief technology officer, shares his thoughts on the acquisi- tion and outlines the company’s strategy for the future. Q: IDT recently acquired ZMDI. What was the reason behind the move and how will it impact the com- pany? Sailesh Chittipeddi: “As IDT con-
I
tinues to grow, we have constantly been engaged in the process of evalu- ating products and technologies that are synergistic with our organic growth drivers. ZMDI fills the bill with its signal conditioning and digi-
ntegrated Device Technology (IDT) recently acquired Ger- many-based semiconductor com-
tal power products, and brings us ad- ditional growth in the automotive sector for our company’s existing markets. We see tremendous oppor- tunity for our products through ZM- DI’s automotive channels. This is an area where it would have taken us over five years to grow the business organically. Furthermore, their digi- tal power portfolio augments our own and provides an additional accretive growth vector in our communications and high-performance computing markets. As a result, we see a lot of potential for product and technology leverage because of the acquisition. We also expect that it will be accre- tive in short-order and meet our fi- nancial expectations in about a year.”
Q: ZMDI was a fabless company, as is IDT. Does being fabless position the company differently and how does it benefit the customer? S.C.: “It provides us with a much more variable cost structure than companies which have their own fab- rication facilities, and it fits our mod- el of generating an excess of 25 per- cent FCF (free cash flow). From a customer perspective it allows us to leverage our partners superior wafer fabrication and assembly facilities, where they have the ability to deploy capital over a much larger base of customers than we could ourselves, and combine that with test facilities in Penang and Dresden. Our au- tomotive center, which will be based in Dresden, will allow us to focus our resources on quality and reliability and use ZMDI’s position with its customers as well.” Q: With a history in power, in- terconnect and timing products, will the portfolio change now that you offer sensing solutions? S.C.: “We see this as complementary and not substitutionary. Our cus- tomers will see the leverage our com- plementary skills bring to the mar- ketplace, and we will be able to pro- vide solutions for them that each company on its own would have tak- en a long time to develop. As an ex- ample, sensing and timing comple- ment each other well, as do sensing and wireless power products. There is much more that we are working to leverage, but you will see IDT bring new products to the market over the next five years that none of our com- petitors can match.” Q: What does IDT offer in the auto- motive vertical, and why is it of ben- efit to your customers? S.C.: “IDT has already provided mod- est system level solutions to its cus- tomers — for example, the computing solution we provide a variety of end users in the DIMM market as well as the hardware and tools to help debug the various cases encountered in end-memory-based applications. Similarly, ZMDI has provided
not only the hardware, but also the algorithms for calibration with its signal conditioning devices. As we in- tegrate the two companies we will leverage firmware development re- sources across both to provide solu- tions for our automotive customers’ needs. In addition, we are also using our partnerships in MEMS as well as
in the optical films areas and com- bining their expertise with package and module development. Q: The demands of a sophisticated consumer base offer challenges to companies like yours. Given the ex- pectation that the rapid race to mar- ket will not slow down, what are the changes that need to happen in IC design development and test to meet these demands?
“At its core, IDT has been serving the needs of an
extremely challenging customer base in areas such as memory interface, precision timing for networks, and high-volume
demands of the mobile customer segment. The addition of ZMDI augments an already strong
customer base, with a higher level of emphasis on quality and reliability...”
S.C.: “At its core, IDT has been serv- ing the needs of an extremely chal- lenging customer base in areas such as memory interface, precision tim- ing for networks, and high-volume demands of the mobile customer seg- ment. The addition of ZMDI aug- ments an already strong customer base, with a higher level of emphasis on quality and reliability. Several of our customers expect automotive-lev- el quality for their current products. From a design and test perspective, our core IDT designs will have to be characterized over a wider range of temperatures. Also, larger and more memory-intensive designs are re- quiring more design-for-testability and BIST. On the design front, we continue to focus on quality and bringing together the best and brightest from both IDT and ZMDI to improve our efforts overall. In addi- tion, our SI/PI efforts in the packag- ing and module design areas will pro- vide us with capabilities that, up to this point, were difficult for ZMDI to support going it alone. We also con- tinue to stay at the leading-edge of statistical analysis for quality, yield and reliability improvements to give
our customers a leg up. Contact: IDT, 6024 Silver Creek
Valley Road, San Jose, CA 95138 % 800-223-1366 or 408-284-8200 Web:
www.idt.com r
See at EDS, Suite B40
May, 2016
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