With the motherboard industry reaching maturity and competition growing fierce, as the world's second ranked brand vendor, Gigabyte Technology has been aggressively trying to stay competitive in the market by coming up with new innovations to satisfy consumers.Digitimes recently had a chance to sit down with James Lo, director of Gigabyte's Motherboard Business Unit, Taiwan Sales Department and Service and Marketing Center; Raymond Tseng, vice president of Gigabyte's Motherboard Business Unit, Innovation & Creative Value Center; and Stewart Haston, marketing manager of Gigabyte's Motherboard Business Unit, to discuss the latest innovations the company is ready to display at Computex Taipei 2013, as well as its future outlook.Q: Where is Gigabyte's current position in the motherboard market? And what is the company's current status?Lo: In terms of sales, we are mainly focusing on the retail channel motherboard business and are currently the top-two vendor worldwide.Of current retail channel motherboard shipments, including those from brand motherboard vendors and regional brands, which are about 60-70 million units, Gigabyte and the number one vendor, Asustek Computer, together account for 40 million units, about two-thirds of the total volume, showing that we are one of the top-tier players in the industry, no matter whether you look at it in terms of volume, quality or revenues.Q: What new products or technologies will Gigabyte showcase at Computex 2013? What advantages do these products have that will allow them to outmatch their competitors?Lo: Basically, for this year, we have separated our motherboard product line into three major series: Ultra Durable, our conventional motherboard series for the mainstream market; OC, which has many unique functions designed specifically for the overclocking industry; and Gaming, a series that features the most advanced hardware and technologies to satisfy the demands of gamers.People used to use PCs only for work, but are now also using them for entertainment. Although some people are satisfied with standard specifications, there are always people hoping for better, and this has helped turn motherboards into premium products like smartphones, where there are a variety of choices from NT$5,000 (US$167) models to NT$20,000 models based on consumer needs. Gigabyte has become a well-known brand for supplying premium motherboard products.We have also become particular about our industrial design, especially our PCB coloring. In the old days, our motherboards were usually blue and black, but we are now making our motherboards and cooling components such as heat-sinks and heat-pipes in colors that are popular among gamers, such as green, orange and gray, to satisfy their desire to build PCs that will stand out at a LAN party or gaming tournament, as well as delivering the technical specifications expected of a performance PC.Haston: At the high-end level, it's not just about the hardware or specifications; it's about creating a brand, and most enthusiasts and DIY builders know that Gigabyte green is meant for gaming, while Gigabyte orange or black is meant for overclocking.We were the first vendor to launch an overclocking-specific motherboard and the move blew away overclockers and triggered many competitors to follow suit. So, the business is all about leadership, it's all about jumping in and doing things first.We have a competitor which only colors its products red for both the overclocking and the gaming segments, but for us, we see two different paths. Gaming is one specialized area and overclocking is another, and this strategy is how we differentiate ourselves in the high-end market.Tseng: Let me give a brief introduction to some new technologies we've put onto our motherboards. For the OC series, we soldered a couple of USB ports directly onto the motherboards, which is a feature optimized purely for overclockers.Meanwhile, we have also designed several features on our OC series motherboards to satisfy customers' need for fast, responsive Internet connections and better audio output, and some of these designs have also been adopted in our gaming and mainstream motherboards.Our strategy is aimed at satisfying customers from all different groups.We also designed a new BIOS, which took us one and a half years to complete, that changes its user interface color and adjustable options with the motherboard series being used, in order to give both visual and technical satisfaction to our customers.Q: What is onboard Amp-Up Audio technology? What factors did Gigabyte consider in deciding to push this technology?Tseng: Amp-Up Audio allows DIY users to replace the audio amplifier chip on their motherboard. By changing chips, the sound capabilities on their boards can be completely altered, allowing users to pick whichever they prefer.Haston: It's the DIY concept. The whole point of DIY is to allow users to try out different configurations, and so why not provide users the same option for their motherboard audio chips?We have done tests with the technology, and audio quality on motherboards without an Amp-Up chip inserted show a huge difference from those with a chip. And it's not just differences in audio volume, there are huge improvements in audio quality and clarity, while chips made by different companies will also output different kinds of sound.At launch, we will offer what we call the premium upgrade kit, which contains three Amp-Up chips for users to play with.Q: Since the motherboard industry is already mature, is there anywhere else that Gigabyte's motherboard business is looking to for opportunities?Lo: We are already in the top-two in the global motherboard industry; so basically, we already have a rather superior branding position, and with our long and attentive channel development, no matter what kind of fluctuations occur in the market, we will continue to be optimistic about performance in the future.In addition to motherboards, we also have a new product called Brix, designed based on Intel's Next Unit of Computing (NUC) concept.Haston: The Brix is smaller than Intel's NUC reference model and can support up to Intel Core i7 processors.Tseng: This product is a result of cross-business-unit cooperation. Although the Brix is made by other business units, the motherboard business unit is the one handling sales to retail channels.As James just said, we stand in a rather good position; therefore, in addition to strengthening our existing product lines, expanding into more PC-related applications is one of our major goals. Applications such as thin mini-ITX form factor motherboards and all-in-one PCs are both product lines that the motherboard business unit is providing support on.Light industrial PC applications such as kiosks, which need small form factor motherboards, for small-to-medium enterprises are also an area that we are expanding into, and in fact, many of our motherboard competitors are also aggressively competing for orders in these areas.Q: What is the status of motherboard competition in China? What strategies is Gigabyte taking to gain advantages in the market?Lo: China is a market with a scale similar to that of North America or Europe. There are 300-400 first- to third-tier cities in the country, with third-tier cities having populations of at least 1-2 million. The country's high population and good economy have allowed it to achieve a PC penetration rate higher than all other emerging markets, which has boosted motherboard demand in the country.Currently, close to 40% of motherboard shipments in the global DIY market are contributed by the China market, showing how important this market is to the motherboard industry. However, motherboards shipped to China are still mainly entry-level and low-end models.Since demand in the China market mostly comes from first-time buyers, while a large portion of consumers are price-oriented, price competition is a common strategy for gaining share in the market.Gigabyte has already been operating in China's motherboard market for more than 10 years, but we actually do not have any special strategy for the market except careful channel management, which includes both channel expansion and maintenance. For the future, we will continue strengthening our brand and releasing more new products and better services for the market.Currently, we are seeing rather healthy progress towards achieving our motherboard shipment goals for 2013.Tseng: Market shares have become an important index for the motherboard market. Only vendors with a good position can expect to continue to survive in the market.Many of the second- to lower-tier vendors have already been left out of mainstream motherboard competition, and we've seen most of them turning to focus on other industries to find better opportunities.Q: How about other emerging markets? What are Gigabyte's plans for them?Lo: We have also been operating in emerging markets such as Brazil, Russia, India and Southeast Asia for over 10 years, so these markets are not really much of a problem for us. As for the Africa market, we are still observing its status, but the market is still rather small currently.Q: What do you think of Thunderbolt's progress in the motherboard industry?Lo: In terms of technical ability, Gigabyte has no issues developing motherboards featuring Thunderbolt, and we are one of the few players able to do so.However, whether Thunderbolt can become a popular standard will depend on consumer demand.Q: What is the company's view of the motherboard market in the second half of 2013? Will Haswell or Windows 8 have a chance to boost motherboard demand?Lo: New product launches will definitely benefit us, as many consumers will try to replace their old PCs with new ones; therefore, we are optimistic about the sales contributions from Haswell and Windows 8.As for the second half, we expect the market to stay healthy and Gigabyte will continue to remain on a stable track.Motherboard executives at Gigabyte (from left to right): James Lo, Raymond Tseng and Stewart Haston.Photo: Joseph Tsai, June 2013

Europe may levy anti-dumping tariffs on China-made solar products. This will increase the prices of China-made solar products in Europe. To retaliate, China will likely impose tariffs on Europe-based polysilicon through its on-going anti-dumping investigation into US-, South Korea-, and Europe-based polysilicon makers. According to UK-based media, The Telegraph, most EU state members oppose the punitive tariff that may be as high as 67%. According to the report, countries such as Germany, the UK, and The Netherlands oppose the trade war because the countries are fearful of losing business in China.The magnitude of reaction since the announcement that the EU anti-dumping tariff rate may be in the range of 47-67% has been strong compared to the reaction to the US punitive tariff rate. The reason is because the EU anti-dumping tariff may be levied on China-made solar modules. China is the biggest solar module exporter. The EU punitive tariff will hurt China-based firms where it hurts the most. According to Forbes, China sold about US$21 billion worth of solar panels and components to the EU market in 2012. Despite the strong growth of installations among emerging markets, Europe remains the largest solar market in the world. Also, many Europe-based solar firms exited the market in recent years; hence China-based firms have been dominating the market. Some believe it is because of the low price solar modules provided by China-based firms, coupled with lucrative incentives that allow solar installations to soar in Europe. Supporters of the tariff believe that it is precisely due to the low price solar modules that have put Europe-based solar firms out of business.The solar market is still in its infancy in many countries and it is understandable for governments to protect domestic firms.China has been known for providing hefty subsidies to nurture infant industries and solar is one of them. The subsidies, coupled with cheap labor, allow China-based solar firms to produce products using low costs and expand capacity rapidly. It is very difficult for firms from other countries to compete.The possible punitive tariff may just be a way for Europe to get China to sit down for a trade talk. According to UPI.com, officials from China have arrived in Brussels to begin the trade talk on May 27, 2013. The trade talk will include the recent trade dispute over solar panels and wireless telecom equipment.

Apart from gradually replacing traditional lighting, LED lighting is targeting the high-end market with more value-added products. In addition, commercialization of OLED lighting has also started.LED lighting prices were four times as expensive as energy-saving light bulbs in 2011 but by the end of 2012, the difference had narrowed to 30%. Therefore, in order to avoid price competition, international firms have been introducing LED lighting products with features such as adjustable brightness and omni-directional.According to Philips, the lighting revolution involves three stages. The first sees traditional lights replaced by ones with longer lifespan and energy-saving features. The second stage is to introduce integrated LED lighting fixtures instead of adapting LEDs to traditional fixtures. The third stage is to develop new applications, such as ones incroporated into architectural and city designs. Philips believes the current market is at the beginning of the third stage. The aim is to develop new functions to drive growth for the lighting market.Smart lightingPhilips has received the L-Prize award from the US Department of Energy (DOE) for its Queen Star series of LED light bulbs with brightness angle reaching 300 degrees. The product has been introduced to the Taiwan market with retail prices above NT$1,000/unit (US$33.51/unit), which is a few times higher than prices of other LED light bulbs in the market. The firm is also eyeing the smart home market, and has introduced Hue series LED light bulbs that can be operated through mobile devices. A package of bulbs carries a retail price of US$199. Users can download to their mobile devices the specific app for controling the bulbs' brightness and colors. Users can also pre-set lighting schedules. Despite the relatively high price, demand has been strong.Philips predicts in the next eight years, prices of LED lighting will fall more than 80% and penetration rate will increase to 64%. With the market expanding, Philips believes LED lighting with digitalized control will stimulate another wave of demand growth.Japan goes high-endJapan has been the fastest growing LED lighting market. It accounted for 40% of the global market in 2012, and the proportion is expected to remain the same in 2013. But starting from 2014, LED lighting growth in Japan will slow down with penetration rate reaching 59%. Although the importance of Japan in the global LED lighting market may be diminishing, Japan-based firms have been eager to achieve product differentiation by adding values.Toshiba's business strategy centers on combining LED lighting with smart features, while Panasonic focuses on value-added LED lighting. Panasonic has been working to minimize the size and weight of lighting products while aiming for high-power and omni-directional angles. Emphasis has also been given to color-temperature adjustments that allow users to change the lighting according to the different times of the day.Both firms plan to introduce specific products for certain areas in a residential home.OLED lighting on the riseThe OLED technology has been gaining popularity due to the rise of smartphone displays. In addition, commercial OLED lighting has begun to enter volume production. In some recent lighting shows, many firms showcased OLED lighting applications that emphasized featurs such as lightweight, high color-rendering, and design flexibility. The OLED lighting market is expected to take off in 2015.Panasonic Idemitsu OLED Lighting (PIOL), a joint venture of Panasonic and Idemitsu, began volume production of OLED lighting panels in October 2012. According to PIOL, the special feature of OLED lighting is that the color-rendering index (CRI) is higher than 90 with thickness of 2.11mm and weight of 38 grams. The brightness efficiency of the product is only 30lm/W and the lifespan is 10,000 hours. However, PIOL plans to introduce improved products in 2015 and 2018 with brightness reaching 130lm/W and lifespan of 40,000 hours.Lumiotec, a joint venture of Mitsuibishi, Rohm, Toppan Printing and Mitsui, has been expanding capacity. In July 2010, the annual production volume of OLED lighting panels was 40,000 units. The firm currently has a capacity to produce 200,000 units (145mmx145mm) a year. Prices range from JPY13,000-30,000/unit depending on sizes and color temperatures. The firm predicts by 2017, prices may fall to JPY3,000-5,000/unit.According to studies done by Konica Minolta, by 2015, the global LED lighting output value will reach JPY1.4 trillion and OLED lighting output value will reach JPY100 billion. After 2015, OLED lighting will take off and by 2020 when the global LED lighting market output value reaches JPY1.9 trillion, OLED lighting will reach JPY900 billion.In 2012, the brightness efficiency of OLED lighting was less than 50lm/W but by 2015 it is expected to reach 120lm/W, close to the brightness efficiency of 140lm/W of LED lighting. The brightness efficiency of the two products is expected to be the same by 2020. Konica Minolta estimates that by 2015, the price-performance ratio of OLED lighting may reach US$30/1,000 lumens, comparable to the price-performance ratio of US$20/1,000 lumens for LED lighting. By 2020, according to the same study, the price-performance ratio of the two products will both be US$15/1,000 lumens.While Taiwan-based firms emphasize on expanding capacity and improving technologies, Europe-, US-, and Japan-based firms have been shifting focus to added-values and product differentiation for LED lighting products.

The trade war in the solar market does not seem to be stopping. Following the anti-dumping and anti-subsidy tariff levied on China-based firms from the US, the EU is likely to follow suit with a tariff rate above 30%. If this tariff comes into effect in June, Taiwan-based solar firms are likely to benefit. According to Sam Hong, president of Taiwan-based Neo Solar Power (NSP), if the tariff is above 30%, it will effectively curb domestic production of solar modules in China.According to a report by The Wall Street Journal on May 9, Karel De Gucht, trade chief of the EU, proposed that punitive tariffs against China-made solar panels and components be in the range of 37.3-67.9%. According to the same report, China-based solar imports account for 80% in Europe's solar market.China is not happy about this.Another report by The Wall Street Journal published on May 9 stated that a spokesperson for China's Ministry of Commerce said "China resolutely opposes plans by the European Union to impose punitive tariffs on imported Chinese solar panels and will protect local companies." Yao Jian, the spokesperson for the ministry added that China does not want to see a trade war.The same report noted that according to a copy of plans drafted by the European Commission, the tariffs will come into effect on June 6 and solar firms such as Suntech will face rates of 48.6%. The report added that according to the same document, tariffs on LDK Solar, Trina Solar, and JA Solar will be 55.9%, 51.5%, and 58.7%, respectively.A commentary from China's official news agency Xinhua News detailed the trade value between the EU and China in the first four months of 2013 in order to show that China is an important trade partner for the EU. In addition, the report said, "The notion that china will do nothing and quietly accept the duties is unrealistic." The report also stated their could be possible damage to the job market in Europe if the European Commission decides to set tariffs above 60%.China is not the only one opposing the tariffs. The Alliance For Affordable Solar Energy (AFASE), a Europe-based coalition of 450 Europe-based solar companies, sent an open letter to De Guct expressing concerns over the duties which the Alliance believes will hamper the growth of solar energy in the EU, according to Australia-based solar news media Energy Matters.Europe may levy tariffs on China-made solar panels in JunePhoto: Digitimes file photo

Many of the emerging solar markets are hot - both literally and metaphorically - because of their abundant sunshine hours and geographical locations. Solar investors no longer look to developed solar markets such as Germany and Italy as the governments of the two countries continue to reduce solar incentives. Solar firms are turning their focus to emerging solar markets such as Japan, China, the US, India and the Middle East.France-based gas and oil firm, Total, is currently eyeing the solar market in Qatar, according to a report from Gulf Times. Total is also a large shareholder of US-based solar firm SunPower, owning 66%, according to the same report.Arnaud Chaperon, Total senior vice-president (New Energies Division), stated that Qatar may achieve renewable energy capacity of 1,800MW by 2018, according to the report.That is a lot of renewable energy capacity. Of course, not all will be solar installations but the figure is quite impressive. According to Wikipedia, the largest solar power plant in the world that is currently running is the Agua Caliente Solar Project in the US with installed capacity of 397MW, due to achieve full completion in 2014. The second largest solar power plant is the Charanka Solar Park in India that has a total of 214MW of installed capacity.People might wonder why a rich country with lots of oil and natural gas like Qatar wants to generate electricity from renewable energy. I believe the reason is that every country hopes to save electricity-generating costs and reduce carbon emissions. In fact, Qatar had the highest carbon dioxide emissions per capita in the world for the past 18 years, according to Wikipedia. Most of the carbon emissions in Qatar were from natural gas processing, air-conditioning, water desalination and electricity generation, said Wikipedia. Sunshine is free, although solar panels are not. However, by saving costs and reducing carbon emissions by adopting solar energy, Qatar can have higher profit margins for its oil and natural gas export business and cleaner air for the people to enjoy. Simple.

This is just a personal view, but I love LED light bulbs. I also love the idea of Taiwan-based firms having own-brand LED light bulbs. Lighting is different from many other industries because it is a necessity. Even if you live in a place where sunlight is abundant during the day, at night, people still need lights. In addition, lighting is not just a necessity, it is also a type of art and a way to improve a person's lifestyle.LED lighting is an interesting thing because it takes the semiconductor technology and turns it into products that simply give us light. An LED is often small in area (less than 1 mm2), and integrated optical components may be used to shape its radiation pattern. LEDs present many advantages over incandescent light sources including lower energy consumption, longer lifetime, improved physical robustness, smaller size, and faster switching. However, LEDs powerful enough for lighting are relatively expensive and require more precise current and heat management than compact fluorescent lamp sources of comparable output.In short, LED lighting is more energy efficient, has a longer lifespan, but more expensive than the conventional incandescent lighting. LED lighting is also called solid state lighting because it doesn't have fuses.The problem with LED light bulb in the Taiwan market is that there are no standards. Some brands are much cheaper than others but the type of the light bulbs is the same. According to the online store of Tsann Kuen, a large IT and consumer electronics retail chain in Taiwan, the prices for three energy-saving 23W light bulbs, each with a lifespan of 3,000 hours, are NT$155 (US$5.24) but the prices for one 10W LED light bulb (replacement for 60W incandescent light bulbs) with a lifespan of 40,000 hours are NT$188. To the average consumer, this is seen as buying three light bulbs for the price of one LED light bulb. However, when you actually evaluate the prices according to lifespan, which is easily seen on the box of the light bulbs, unlike the amount of electricity a person can save, the LED light bulb is worth it. When a person buys the three energy-saving light bulbs, in a total, the light bulbs will last for 9,000 hours. This means to match the lifespan of one LED light bulb, the consumer will have to buy 12 energy-saving light bulbs in total (that is NT$620 in total) . But if the person buys a LED light bulb, it can last for 40,000 hours.By the way, according to the online store of WalMart in the US, the prices of 40W incandescent light bulbs from the brand Sylvania are US$2.91/unit with lifespan of 984 hours. This is cheap, but Cree just introduced retrofit 40W LED light bulbs with prices at US$9.97/unit and each light bulb has a lifespan of 25,000 hours. The price difference is about 3.4 times but the lifespan difference is 25.4 times. Something to ponder about.LED light bulbs are for lazy people. People who just want to put the light bulb in and forget about it for the next 40,000 hours. Spending NT$188 on a light bulb that can last for 40,000 hours is much easier than spending NT$155 four times. This is just my personal opinion.

Tier-one tablet makers have been engaging in price competition in the 7-inch tablet market which has eroded profits, according to sources from distribution channels.The popularity of 7-inch tablets continues to rise. To increase sales many brands provided price promotions at Softex 2013 between April 17-21.Acer's Iconia B1 was originally priced at NT$4,990/unit (US$168/unit) but that the show, prices were slashed below NT$4,000/unit. Prices of Asustek's MeMO Pad ME172V dropped to NT$4,990/unit from NT$5,990/unit at the show. Sources from the distribution channels noted that the aim for the price competition was to increase brand recognition.However, this type of development is not beneficial to distributors and brands.In the 10-inch tablet market, distributors have been able to obtain profits. Excluding the iPad series, the average price of most 10-inch models is around NT$8,000-10,000/unit. Because the prices are high, consumers tend to buy accessories such as covers to protect the products, and the profit margins on accessories are usually high. However, prices of 7-inch products are relatively low and distributors stated that consumers are less likely to purchase accessories to protect them. This has been eroding profits for distributors.For brands, price competition does not help to increase brand value. In addition, consumers purchase products from brands because of quality, guarantees, and maintenance services. All these increase costs. But if brands continue to engage in price competition and shrink profit margins, resources will be depleted and firms will suffer.

Due to lack of sufficient electricity, there are around 400 million people in India that do not have access to any form of electricity, said a report by Voice of America. This is why the country is in desperate need to develop solar installations. To boost the domestic solar industry, the India government plans to set a percentage of India-made solar products in solar installations, said a report by The Wall Street Journal.According to The Guardian, the US has asked the World Trade Organization (WTO) to consult with the India government on its solar program that includes the requirement of using domestic content. The two countries have been in dispute over this issue as US-based firms have been providing 60% of solar cells and panels used in solar power plants in India, according to The Wall Street Journal.India is a country where sunshine is abundant. According to a report by The Times of India, Marathwada, a region in the central state of Maharashtra, has almost 330 sunny days a year. According to the same report, this is why many petrol station owners have been adopting solar panels to generate electricity. In addition, India has a serious problem with load shedding, also known as rolling blackout. In the region of Marathwada, most areas face eight hours of load shedding a day, and in some rural regions, 18 hours a day, said the report. By adopting solar installations, the petrol stations can save costs on diesel generators, the report added.Power shortage is a huge problem in India. Hence the government has been eager to develop the solar market. The government announced the ambitious goal of producing 20,000MW in solar power by 2022 through its national program, the Jawaharlal Nehru National Solar Mission. According to the Wall Street Journal report, the India government said solar power generation capacity will increase more than 10,000MW by March 2017 and by that time, the government will spend close to US$1.1 billion in subsidies.Tata Power, an India-based energy provider, "plans to set up a 28.8MW solar plant near Satara, Maharashtra", said a report from India-based news media, The Hindu. The firm has set a target of generating 26,000MW of electricity from solar energy by 2020, according to the same report.With ambitious goals and ample sunshine hours, India is set to become a big solar market. However, like all the other emerging solar markets, the government is trying to protect and nurture the domestic solar industry. This is bound to limit the access of international firms, and hence may stir up a trade war. But, I think in order for India to reduce reliance on imported energy and to provide uninterrupted access of electricity, protectionism is necessary.

ABB, the leading power and automation technology group, and Power-One, Inc., a leading provider of renewable energy and of energy-efficient power conversion and power management solutions, recently announced that their boards of directors have agreed to a transaction in which ABB will acquire Power-One for $6.35 per share in cash or $1,028 million equity value.The transaction would position ABB as a leading global supplier of solar inverters - the "intelligence" behind a solar PV system - to a market forecasted by the International Energy Agency to grow by more than 10 percent per year until 2021. This rapid growth is being driven by rising energy demand, especially in emerging markets, rising electricity prices and declining costs."Solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing in on grid parity," said ABB's CEO, Joe Hogan. "Power-One is a well-managed company and is highly regarded as a technology innovator focusing on the most attractive and intelligent solar PV product. The combination of Power-One and ABB is fully in line with our 2015 strategy and would create a global player with the scale to compete successfully and create value for customers, employees and shareholders."Power-One has one of the market's most comprehensive offerings of solar inverters, ranging from residential to utility applications, and a broad global manufacturing footprint. It also has a power solutions portfolio that is adjacent to ABB's power conversion business. Power-One employs almost 3,300 people, mainly in China, Italy, the US and Slovakia. In 2012, it generated $120 million in earnings before interest, taxes, depreciation and amortization (EBITDA) on sales of approximately $1 billion."This transaction delivers significant value to our shareholders and will enable Power-One to accelerate its growth," said Richard J. Thompson, CEO of Power-One. "Together we can better address the growing worldwide demand for innovative, renewable energy solutions and strengthen our global leadership. I believe ABB is the right partner and now is the ideal time for our companies to join forces."ABB's leading portfolio in power and automation, global footprint and service organization make it a natural player in solar PV. For many years ABB has brought its solutions to the solar PV industry and is on track to generate sales of more than $100 million in solar inverters in 2013. Solar inverters are one of the fastest-developing technologies in power electronics, requiring substantial research and development (R&D) resources. In 2012, ABB invested about $1.5 billion in R&D overall."The combination of these two successful companies will create significant value-driven growth based on innovation - which means inverters offer opportunities for differentiation - global reach, high quality and technology leadership," said Ulrich Spiesshofer, head of ABB's Discrete Automation and Motion division, into which Power-One will be integrated. "The acquisition supports the implementation of the division's strategy for renewable energy and the goal to build on our strength in power electronics."The transaction is structured as a merger and is subject to the satisfaction of customary closing conditions, including approval of Power One's shareholders at a special meeting and receipt of customary regulatory approvals. The merger agreement contains certain agreed deal protection mechanisms. Investment funds affiliated with Silver Lake Sumeru have entered into an agreement to vote in favor of the transaction. The transaction is expected to close in the second half of 2013. ABB will finance the transaction out of its own funds.Credit Suisse acted as financial advisor to ABB, and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor. Goldman Sachs & Co. acted as financial advisor to Power-One, and Gibson, Dunn & Crutcher LLP as legal advisor.ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people. In the United States, ABB had revenues of $6.7 billion and its workforce grew to nearly 20,000 employees in 2012.Power-One, Inc. (www.power-one.com) is a leading provider of renewable energy and energy-efficient power conversion and power management solutions and a leading designer and manufacturer of photovoltaic inverters. Its renewable energy products enable the industry's highest yielding conversion of power from solar arrays for use by utilities, commercial enterprises and homes. Power-One has a 40-year history as a leader in high efficiency and high density power supply products for a variety of industries including renewable energy, servers, storage and networking, industrial and network power systems. The company is headquartered in Camarillo, California, and has operations in Asia, Europe, and the Americas spanning sales, manufacturing, and R&D.

Coto Technology, which has been designing and developing small signal switching solutions to the worldwide electronics industry for over 90 years, has announced the availability of its RedRock RS-A-2515 MEMS-based magnetic reed switch. The switch has a footprint of less than 2.5 mm2 (1.125 x 2.185 mm), is 0.95 mm high and Coto claims it is the smallest MEMS-based reed switch available on the market today.Based on its high aspect ratio MEMS design and manufacturing processes, the switch provides all of the advantages of conventional magnetic reed switch technology, including zero power operation and high-power hot switching.The solution targets applications in the medical, military, and industrial markets.The Coto Technology RS-A-2515 MEMS-based magnetic switch is the first of a new Coto Technology switch family. The company noted the MEMS devices exhibits all of the characteristics inherent in classical reed switches. These include closure sensitivity ranges from 5 to 25 millitesla, permitting operation up to 20mm using a small NdFeB magnet. This provides it with the ability to address a wide range of applications. The switch has a release sensitivity less than 15 millitesla (5mT), minimizing the risk of sticking when the magnetic field is removed. The RS-A-2515 has a maximum switching voltage of 100 VDC with a switching current of 50mA DC or 35mA AC, RMS. The zero operating power is a critical advantage in power sensitive applications, particularly those operating with battery power.The RS-A-2515 is available from stock in evaluation quantities at the unit price of US$29.95. Coto also provides an evaluation kit for US$49.95 in single piece quantities.