Electronics Weekly puts its questions to an industry figure: Per-Olof Loof is CEO of Kemet, the capacitor manufacturer and supplier
You manufacture products all over the world. Apart from variable labour and shipping costs are there any other differences connected to these regions?
In addition to having labour cost advantages - which in our world are actually necessary to be competitive - there is great and growing benefit in being close to the customer at all times. Having a local manufacturing presence, where the customer is, brings value both to our customers and to us. There will always be situations where the customers want to talk to somebody in the local time zone, in the local language and in the local culture. It makes a difference.
Can you have a long term manufacturing strategy?
Our strategy is to have our operations where they make economical sense. Obviously, labour is a big component in our industry. Our long-term strategy is to locate where we can have the best labour, the lowest possible cost and being close to the customer ensuring we can provide the service they demand. We will in addition to low cost manufacturing activities ensure, that where it makes sense, we also have facilities in both Europe and the Americas. In particular for the specialty businesses, power applications is one such example.
Can multi-layer ceramic capacitors for DC-DC converters get much smaller without losing reliability? If yes, how?
Yes, the downsising trend will continue, as the end-customers demand smaller electronics with more functionality. The size reduction will be enabled by the continued improvement in the quality of thin ceramic dielectric layers, the ability to stack more and more layers, and the continuing increase in packaging efficiency (i.e., the reduction of non-active area in the package).
Challenges will include overcoming the reduction in dielectric constant with smaller particles for thin dielectrics and the fall off of capacitance with bias voltage for thin dielectric layers. The industry is actively working to overcome both of these limitations. Also, as the frequency of switch mode converters continues to increase, the requirement will be for smaller total values of capacitance which will allow the use of smaller capacitors.
Is there still a world shortage of Coltan?
There is no shortage of the ore that is the major raw material in capacitor grade tantalum powder. Coltan is only one type of material that contains tantalum. The major source for tantalite is still in Western Australia and the reserves are substantial. There is a relatively new prospect being developed in Abu Dabbab, Egypt that could be the second largest deposit in the world.
Did you always want to be a CEO?
Once I thought I would chose music as my profession, some have characterised me as a frustrated rocker. I am not sure I am all that frustrated but I did once considerate it, but eventually I came to my senses and realised that selling pays better than singing.
I guess I have always wanted to lead and get things done. I had an aspiration once to become a CEO for a NYSE company, being Swedish it would be like winning an away game. Kemet is my second one. But there was never a plan, opportunities presented themselves and I took them. But for me having other interests and being able to boat, ski, and music and of course my family is actually more important than my career. But don't get me wrong I love what I do.
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