Enhancing Your Performance with High Grade System Level Optimized Solutions for a Wide Range of Applications: Integrated Device Technology

"Headquartered in San Jose, California, Integrated Device Technology received the Electroniques magazine Electrons d’Or Award for the year 2016 for the space-grade chip it developed with BAE systems.”

Finding an alternative with the available resources & the most cost-effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired ones is termed as optimization. Optimization techniques or solutions enable companies to obtain peak performance and deliver maximum profitability to large and complex process plants. Whether it is optimizing the use of energy, utilities, or off-sites, or the process itself, optimal operating parameters deliver targeted operational results within various constraints.

Integrated Device Technology, Inc. (IDT) combines analog and digital technology to develop system-level innovations or solutions that optimize customers’ applications and enrich the end-user experience. IDT was one of the original Silicon Valley companies. It was founded in 1980, and over the years, evolved and grew along with the technology landscape. A little over three years ago, it went through a strategic redirection. In the 2012 to 2013 time frame, the company divested a number of businesses with low strategic value so it could focus on three primary markets: computing and communications, consumer, and, more recently, automotive and industrial.

IDT’s market-leading products in radio frequency (RF), timing, wireless power transfer, serial switching, interfaces and sensing solutions are among the company’s broad array of complete mixed-signal solutions for its market segments. IDT has design, manufacturing, sales facilities and distribution partners throughout the world. IDT’s stock is traded on the NASDAQ Global Select Stock Market® under the symbol “IDTI.”

An overview of the company’s position in the current market scenario

Technology industry as the company believes is a tale of two cities – presently the traditional equipment markets such as PCs, Smart phones, and enterprise computing are seeing slower growth whereas cloud data centres, Smart Power management, and automotive markets have a very strong, steep growing curve. This understanding has enabled the company to focus significant R&D investment and product portfolio in these growth markets. In addition, the tech industry is undergoing consolidation. While IDT thinks this is a positive trend overall, it feels that the focus on consolidation and cost synergies has, in some cases, been at the cost of innovative and creative new products, hence IDT has positioned itself to deliver new leadership products that enable it to maintain both  growth and profitability.

It is in a position of strength and the credit belongs to the ongoing innovation from its team and their success in diversifying the product portfolio. Despite the lack of growth in the market, IDT has grown in the last two years at just under 20% per year, and its fiscal fourth quarter marked the company’s 10th consecutive quarter of year-over-year revenue growth. That growth is being completely fueled by new innovative products that sell into diverse market segments. IDT is outrunning a softer global demand environment.

Accelerated growth in a short span

IDT’s smart move to acquire the German company ZMDI last December has made all the difference. Three years ago, the growth of the company was attributed to only one of its segment—communications. Two years ago, growth was coming from communications and data centres; one year ago, communications, data centres and consumer business driven by wireless power were the contributing factors and this year, it has all those plus automotive because of its new found acquaintance with ZMDI. IDT expects to introduce more compelling new products in FY17 than it has in its recent history.

A wide range of products

IDT’s market-leading products in RF, wireless power, and sensing solutions are among its broad array of complete mixed-signal solutions for the target segment. Its products are used for development in areas such as 4G infrastructure, cloud data centres and to tackle problems encountered in power management for computing and mobile devices. Its product categories include:

Clock ICs and Timing solution- IDT is the world’s leading provider of silicon timing devices (clock ICs) and offers the industry’s broadest product portfolio of clock timing solutions for networking and communications, consumer, and computing applications. Factory-programmable options and clock solution customization capabilities address unique customer requirements, while the lowest jitter and lowest power features set IDT apart from the competition.

Interface and connectivity- IDT is the industry leader in serial switching devices optimized for the most demanding applications. IDT is the only “one stop” source with PCIe solutions for Switches, Bridges, Signal Integrity, Flash Controllers, and Timing.

Memory and logic- It is the industry leader in memory interface devices, offering JEDEC-compliant Registered Clock Driver (RCD), Data Buffer (DB) to meet the tight timing budget requirement of dual in-line memory modules (DIMM) and memory interface applications. IDT is also the industry’s leading supplier of FIFOs and multi-port memories with the most comprehensive and highest-performance products available.

Power management- IDT is a leader in wireless power transmitter and receiver solutions for battery charging applications. IDT’s wireless power portfolio includes the industry’s first true single-chip Qi certified wireless transmitter IC, and the industry’s first dual-mode (WPC and PMA compliant) wireless power receiver IC.

RF products– The company offers high-performance and full-featured radio frequency (RF) products that deliver exceptional performance in compact packages. The portfolio includes RF mixers, RF amplifiers, variable gain amplifiers (VGA), digital step attenuators (DSA), demodulators, broad band modulators, RF switches, and wideband voltage variable attenuators.

Sensor products- It designs sensor ICs and sensor signal conditioner ICs used to build sensor modules and sensor interfaces for a wide range of applications, including automotive, industrial, consumer and medical. IDT’s portfolio of sensor signal conditioner ICs, optical sensor ICs, and battery sensor ICs are supported by advanced software and expert technical support staff with extensive sensor system design experience.

The company’s December acquisition of ZMDI has a significant impact on its product range, which now includes established and growing automotive and sensor business. In addition, the acquisition provided great cross-selling opportunity for existing IDT products into the automotive segment.

“IDT as a global organization is committed to continuous improvement through site operations and product development.”

Areas of application

IDT’s products find application in numerous industries:

Automotive- wherein IDT’s products can help reduce power consumption by enabling energy-saving innovations. The company addresses automotive applications with its smart sensors and industry-leading timing portfolio. Its applications include Electric Power Steering, Emission Control, Variable Valve Timing, Fluid Level Measurement, Heating Ventilation and Air Conditioning.

High-performance Computing– IDT offers ultra efficient DDR3 and DDR4 LRDIMM memory interface solutions, Serial RapidIO®, PCI Express® switches and bridges, signal integrity products, world-class timing, and high efficiency power management solutions for high-performance computing and cloud-based enterprise server applications.

Industrial & Embedded- addresses industrial and embedded applications with a broad portfolio of high-performance and highly-flexible timing ICs, leading interconnect solutions such as Serial RapidIO® and PCI Express®, signal integrity products, and advanced power management solutions.

Mobile & Personal Electronics- IDT’s innovative timing, interconnect, PMIC, and wireless power solutions enable customers to develop mobile and personal electronic products with innovative features, improved performance, and extended battery life.

Network Communications- It offers a broad range of solutions for high-performance network communications applications. IDT’s leading Serial RapidIO®, PCI Express®, power management, and advanced timing solutions including network synchronization products outperform the competition, enabling customers to develop the most advanced systems.

Wireless Infrastructure- IDT is a leading innovator of high-performance ICs designed specifically for wireless infrastructure applications such as 4G, 5G and cloud RAN. Solutions include industry-leading RF signal chain products, Serial RapidIO®, and advanced timing.

Addressing the industry’s struggles directly

IDT tends to the customers’ grievances commonly faced in the industry by capitalizing on three key trends: data services, intelligent sensors, and more efficient electrical power.

Addressing the first off the three, the company explains that the growth of cloud data services has dramatically increased the data produced and used by electronic products, particularly in communications. IDT has reduced the burden by providing semiconductors that enable the movement and management of these vast volumes of data. For instance, 100% of today’s 4G calls pass through specialized IDT components. No one can place a 4G call without it touching one of the company’s chips. And also they have introduced new technology that will help enable the development of 5G networks down the road.

The second big trend is intelligent sensors, which are starting to be designed in pretty much everything. With the acquisition of ZMDI, the company is now squarely in the middle of the advanced sensing market, with products that can add differentiated value in automotive, industrial and mobile devices.

As a society, we are simply using too much electrical power, which is why IDT relentlessly looks for ways to conserve and effectively distribute electrical power. It is already a leader in what is called smart power management. This feature is used in devices to save energy costs in many diverse applications and provide new ways to distribute that energy. For instance, the wireless charging feature in Samsung mobile devices is a feat by IDT.

Advanced technology and core expertise sets them apart from their competitors

IDT is different as it delivers very strong financial results along with growth and a host of new, advanced technologies. The best companies in the technology sector usually either have growth or high profitability but IDT delivers both. The company has committed itself to a long-term growth of at least twice the overall market rate, and is one of the fastest-growing technology companies today. It has the operating profitability and free cash flow equal to the absolute best of the large caps. Unlike many of their competitors, IDT does not use semiconductor solutions broadly. Rather, they focus on their core expertise–analogue mixed-signal in domain areas, such as smart power, sensors and RF.

Clientele

IDT enjoys a blue chip customer base in all of its target segments. The major customers under Computing and Communications include Dell, HP, Huawei, Nokia-Siemens, Ericsson, and Cisco. Samsung, LG, Sony, and others come under Consumer products. The ones under Automotive include Continental, TE Connectivity, Sensata, Murata, Kia Motors, and Hyundai.

“Our 30+ years heritage and leadership in digital technologies, coupled with in-house analog talents and capabilities, make us the premier analog and digital company.”

We will continue to develop differentiated products for our target markets, including sensing and automotive technology. By the end of this calendar year, we expect IDT to have introduced several interesting new products—in fact, a greater number of products than we have introduced in the last several years combined. There will be several brand-new classes of products being announced, so it is a very big product year for us.

Meet the multifaceted key executive

Waters joined IDT in January 2014 as President, CEO, and a member of the Board of Directors. Prior to IDT, he served from 2003 to 2012 as executive vice president and general manager for Skyworks Solutions, where he led the company’s wireless businesses to a decisive industry leadership position. Before Skyworks, he held several executive business unit positions at Agere Systems, where his responsibilities included M&A and IP licensing and where he played a key role in the company’s successful IPO. Waters began his career at Texas Instruments, serving in a variety of management positions in sales, customer design centers, and business unit management.

Waters believes the semiconductor industry’s future will be led by companies that develop innovative system-level solutions that are delivered as semiconductors. Solving problems that are important to industry or society, and delivering those solutions in a way that can be used broadly, is not only great business, but also attracts the best and brightest in our industry. Waters believes that the semiconductor industry’s best days are in front of us, but that we have to create it. Today’s largest technology markets were created by leaders from a generation ago.

Waters holds a B.S. in engineering from the University of Vermont, and an M.S. in computer science from Northeastern University. His technical education has focused on real-time embedded processing, communications