Dirk Heidenreich, SEMIKRON
Release Date: 2009-09-07
Having been dedicated to this field for 58 years, SEMIKRON is the only family company among the world’s leading manufacturers of semiconductors. What sets SEMIKRON apart from other players in the field?In a family owned company the management and the people stay for a long time. I have been here more than 20 years and the management team has been working for SEMIKRON for between 12 and 17 years as well. For the customer this means that they can hold me to my promises. We have a clear long-term strategy which we don’t change every year. Our philosophy has always been people-oriented; if people stay in a company for a long time, then they become much more effective and can take on greater responsibility, which is an important point for SEMIKRON. Self-responsibility is an important factor in the company; people can and do make decisions and their commitment to our joint success is very high.
While the strategy and people have stayed the same, SEMIKRON has become a global player. How do you balance stability with new market developments and innovation?
For us globalization started in the 1960s. Over the past decades, stability has been the key to our success. Right now we are in the middle of an economic crisis but SEMIKRON is keeping to its long-term strategy. The same goes for economic boom times, when we are simply doing what we have to do and operate on the basis of long-term scenarios that also involve our supply chain. Thanks to our organization structure and business strategy, our operations run smoothly and changes in the economic climate do not result in increased pressure for us. Responsibility and commitment also play an important part in our success; the members of our team have worked with one another for a long time and this stability enables us to move much faster than organizations that are constantly changing their team. At the moment, newspapers are full of companies that have internal problems, while we are able focus to on our customers and the market.
One of the things people agree on is that the global economy will be greener after it has recovered from the current crisis; how does this affect the opportunities for SEMIKRON?
It affects us a lot because we have been involved in green energy since the beginning of the 1990s, starting with pressure contact technology in the wind power market. We started to focus on this segment because power electronics help save energy. But this does not only apply to wind turbines. The fact that you need power semiconductors to save energy is nothing new.
Over time we have learned our lessons; it was not easy. In 1992 we introduced 1992 a new technology and had a lot of implementation problems but we made it in the end. Today, we have a wealth of experience since over 44% of the wind power capacity installed worldwide uses our technology. We started early with new technological developments, and the critical success factor here is not to develop new products but rather to invest in new technology that enhances cost effectiveness. It is difficult to introduce new technology, because customers wonder whether it will work and are somewhat sceptical as regards the reliance on a single source. In the end, we can convince our customers with the performance of our products which are more compact and powerful. For example, our fourth generation technology SKiiP intelligent power modules generate 30% more power from the same-size system.
You can convince customers based on technology and performance, but you need one key customer in the beginning to be successful. It was really tough in the beginning, but once we saw how much power we could concentrate in a very compact space, this became the basis of our green technology. Reliability was also a key factor and required a different approach than was used in past technology; in the new products we stopped using a soldered connection to the copper base plate, which would always create problems after a certain timeframe, and now sinter the chips so the connection can no longer be destroyed.
It is difficult to be the first, but it may be even harder to remain on top especially as the wind industry is experiencing booming growth. What is your perspective on newcomers in the business and how will you protect your competitive edge?
I am focussed on the next steps for our technology, which will become even more compact and will open up new dimensions for the customer and. us The basis here is to continue working on new technologies. We cannot copy what our competitors are doing. We have to innovate. Innovative technologies are our core competence and we know what we can do better for the wind industry. We will be optimizing products for current power levels and are working on the development of innovative solutions required for the future.
How did you experience SEMIKRON’s first steps on the Chinese market?
In 1996, we started a joint venture which has been very successful from the outset. In 2006 we decided that we had to be present as SEMIKRON, so we founded SEMIKRON China in Zhu Hai. The next step was to start a production facility. We knew we needed to produce our pressure contact technology in China too. By the end of 2009 our seventh solution center for the wind industry will be established here.; I see our future in China in wind applications , automotive, and solar.
Between 2000 and today the number of Chinese wind turbine manufacturers has increased tremendously. What characterizes your customer base, and how much room is there to enter into partnerships with new customers?
It depends on the technology,the customer is convinced about.The quality and reliability of our technology, is the base of a long-term partnership is the main part of our philosophy.
How challenging is it to operate in an environment where copying of products is a concern? Is it an added challenge or a motivation for your research and development activities?
It is greater motivation for us. We just have to offer better quality products and service. These challenges cannot stop us from being in China; it is a good market for the wind industry and wind turbines will also be produced in China. New technologies will also start to emerge in China. If you look at the automotive industry, China is investing in new technologies through financial incentives from the government for every hybrid car thereby supporting the production of these vehicles.
We saw that you recently entered into a joint venture to boost your presence in the electric/hybrid vehicles market; what are your ambitions on this market?
Our main target is to sell power electronics and they are a must in hybrid cars. We started in the 1990s, and in 1998 developed the power electronics for the Audi Duo, Audi’s first hybrid car. We feel we have the right technology because we can integrate the different modules into one system, saving money and space while being more compact and reliable. Magna is a tier-1 supplier that brings in the electronics, software and sales, and we contribute the power electronics, so it is a very good combination for the customer.
The Chinese government has expressed its ambition to become a world leader in this field. Does this mean that you will also be working with Magna on the Chinese market?
Initially, we will start in Europe but in the future our products will be open for the rest of the world. In China we are currently selling to a Chinese manufacturer. Unlike in the USA, the Chinese don’t care if you are not a tier-1 supplier; if a product is good, then that is fine.
What experiences have you had as CEO of SEMIKRON in going to China and starting new ventures and entering new markets? What have you picked up as a corporate leader?
First of all I like the people, and I like the food.. The business we have been doing for a while now is based on the people. The Chinese are straightforward, and I have developed good relations and had very positive experiences over the past few years.
How long do you think it will take for your solutions to come back to Germany in Chinese-made electric cars, wind turbines, solar panels? Do you see this happening in the near future?
I would say sooner than most people in Germany believe, but I do not have a crystal ball. In my experience, it will be sooner rather than later because in China everything is developing much faster than in Europe. First, China has to concentrate on its own development, and when things are settled on this front, the exports will come. First the export of windmills from bigger windmill manufacturers will start; hybrid vehicles will perhaps need some more time but the Chinese are developing electric vehicles at a faster pace than Europe. We have been talking about hybrid cars for 10 years now, but only prototypes are available.
What will SEMIKRON look like in 2015? What do you believe will be the role of China and its green economy in the development of SEMIKRON in the coming years?
Semikron will be stronger and even more international. China will play an ever important role because the country has to reduce its dependence on oil. If everyone in China wants to drive a car, then green technology is a must because of the sheer size of the country and its population.
We think in generations, not in five-year plans. Family-owned companies are different to listed companies. We don’t have to meet to the same requirements; we are much more concerned about our independence and maintaining our innovative strenght.
Power electronics offer a lot of possibilities for saving energy world-wide, and for China energy efficiency and energy independence are crucial. If China invests even more in green energy, it could have an enormous positive impact on the future of our planet. We have the right technologies for precisely that. We have worked successfully with China over the last 15 years, and we can do even better. This is just the beginning.
| Company: | SEMIKRON |
| Position: | CEO |
| Country: | Germany |