The Economic Times  Mar 16  Comment 
The resolution plan of Dalmia Bharat IRF consortium achieved CoC approval in 233 days, which is the fastest so far for a billion-dollar transaction.
The Economic Times  Mar 9  Comment 
Decision comes after RBI proposed to institute separate limit of ₹5K cr for investment by FPIs in IRF.
The Hindu Business Line  Jan 10  Comment 
Leading stock exchanges BSE and NSE will launch new interest rate futures (IRF) contracts offering 7.17 per cent yield on government bonds, from Thursday. The 10 year-bonds would mature on January ...
The Economic Times  Sep 22  Comment 
The policy would aim at addressing issues such as road safety, traffic congestion, security of passenger and goods traffic and parking management, among others.
The Economic Times  Aug 2  Comment 
The circular in this regard would be issued by the RBI after consultation with the Government
The Hindu Business Line  Jan 6  Comment 
BSE will introduce new interest rate futures (IRF) contracts on government bonds maturing in 2029 from January 10. The IRF contract is based on 6.79 per cent central government security maturing on...
The Hindu Business Line  Dec 30  Comment 
The Enforcement Directorate has registered a criminal case against controversial Islamic preacher Zakir Naik and his organisation IRF under money laundering laws. Officials said the agency’s zonal ...
The Hindu Business Line  Nov 19  Comment 
Difficulties for Islamic preacher Zakir Naik mounted further today after NIA registered a case against him and his organisation Islamic Research Foundation (IRF) under anti-terror laws and for allege...
The Economic Times  Oct 3  Comment 
An Interest Rate Futures contract is an agreement to buy or sell a debt instrument at a specified future date at a price that is fixed today.
The Hindu Business Line  Sep 2  Comment 
Top stock exchanges NSE and BSE will launch a new 10-year bond futures contracts offering 6.97 per cent yield on government security from Tuesday.The new interest rate futures (IRF) contract will mat...


Headquartered in El Segundo, CA, International Rectifier Corporation (IRF) is an Original Equipment Manufacturer of power semiconductors that control, condition or convert electrical power in a wide range of end user applications. Management asserts that IRF is the leading global supplier of metal oxide semiconductor field effect transistors (MOSFETs), which are mainstay power components. The company has an extensive intellectual property (IP) portfolio.

Semiconductor devices are broadly divided into three categories: analog, digital and radio frequency (RF). Analog semiconductors condition and regulate real world information such as light, temperature, speed, pressure, power and electrical currents. Digital logic semiconductors process information in only two states. Mixed-signal semiconductors combine both analog and digital technology into a single device. Typically, an analog sensor samples real world information, and then converts the input into an electronic analog signal, which is converted into a digital format for further digital processing. The analog and mixed-signal markets tend to be more varied and specialized, with customized products that have longer life cycles than those in the digital industry segment. There is an ongoing drive to decrease the number of discrete devices, lessen power requirements and shrink the size of the existing devices, which correspondingly increase performance and reliability. Consequently, a greater amount of functionality is being consolidated into increasingly smaller devices. The Gartner Group estimated that the total worldwide semiconductor market was a $219.9 billion market in 2004. The analog market component grew 29% in 2004, to a $36.4 billion market, according to In-Stat, an industry trade group.

Products are manufactured along three segments: power components, analog integrated circuits (ICs) and advanced circuit devices, and power systems. Management also refers to the product lines in the last two segments as proprietary products. The power components segment is the legacy business and includes rectifiers, thyristors, Schottky diodes, as well as more advanced devices like MOSFETs and insulated gate bipolar transistors (IGBTs). These devices are utilized in various combinations, depending on the specific application within the power management circuits. In addition to these discrete component product sales, IRF earns royalty revenue by licensing its MOSFET technology to manufacturers all over the world. In fiscal 2004, the company received $42 million in royalty payments.

The second segment's product line combines these discrete power semiconductor components into an IC, chipset or multichip package. These application specific generic products shift the power management design responsibility to IRF from end customers. These products are used in computers, data networking equipment, telecommunication equipment, consumer electronics, industrial motor controls, and defense and aerospace equipment. The power systems segment integrates the power semiconductors with functional controlling logic into a standalone standardized module that specifically targets the automotive and industrial vertical market applications. Automotive electronics and industrial motor control designers utilize these specialized modules within their equipment, while avoiding the design burden. Specific automotive applications include starter/alternator motors, electronic power steering systems and fan controls, while industrial applications include high-end washers, refrigerators and other energy-efficient appliances. The company has been strategically transitioning from a pure discrete component provider into a more advanced IC or module designer that integrates key power management devices into more sophisticated standardized modules with greater functionality. This strategy has permitted the company to penetrate new markets with correspondingly greater top-line growth and higher margin potential, while relying less on the commodity-like component business.

Traditionally, the firm has manufactured the wafers, assembled and tested almost all the products in-house. However in 2003, IRF announced its intention of reorganizing production and shutting down some older facilities that manufactured commodity products. IRF has also been upgrading one of the idle fabrication lines, with a planned commercial production launch in July 2005. In July 2004, IRF completed the $41 million cash acquisition of specialty silicon epitaxial assets and IP (Intellectual Property) from Advanced Technology Materials, which is expected to lower the cost of production of some devices. Management announced in the September 2004 quarter, its intentions of divesting or discontinuing certain low-margin/low-growth business lines that had contributed $100 million in revenue. Subsequently, another $50 million in low margin business was added. Business lines that generate approximately $100 million of revenue will be divested, while business lines producing $50 million of sales will be discontinued. Through the March 2005 quarter, approximately $36 million of the $50 million in business lines have been discontinued.

Beginning in 2005, IRF will be reporting results based on its focus and non-focus areas. Focus area products are divided into the following categories Computing and Communications (C&C segment), which generated 33% of fiscal year 2005 revenue and grew 17.8% over fiscal 2004 Energy Saving Products (ESP segment), which generated 26% and grew 19.8% Aerospace and Defense (A&D segment), which contributed 11% and grew 19.0% and intellectual Property (IP), which generated 3% and declined 1.8%. Non-focus areas include non-aligned products (which the company is in the process of divesting) and commodity products. Non-aligned products comprised 9% of fiscal 2005 revenue and declined 2.2%, while commodity products accounted for the remaining 18% and declined


The channel distribution to OEM customers is composed of a direct sales staff that contributed 71% of fiscal 2005 revenue and distributors that accounted for the remaining 29%. No single customer contributed more than 10% of revenue in 2005. Competitors in the power components segment are Fairchild, Hitachi, Infineon, Mitsubishi, NEC, ON Semiconductor, Phillips, STMicroelectronics, Toshiba and Vishay-Siliconix. The major competitors in the other two segments include Analog Devices, Intersil, Linear Technology, Maxim, Semtech and Texas Instruments. The Asia/Pacific region, generating 44% of fiscal 2005 sales, was the largest contributor to revenue, while North America, and Europe contributed 31% and 22%, respectively. The remaining 3% contribution was derived from IP licensing royalties.

Comparison to Competitors


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