Delta Electronics

Delta Electronics operates in the segments of power and renewable energy systems, industrial automation equipment, components for IT and telecommunications equipment. The range of activities also covers the development and production of projection systems, LED solutions, automotive electronics, network equipment.

Assets

In 2011, the company owns 41 plants in Taiwan and in China, the USA, Europe, Thailand, Japan, India, Mexico and Brazil. The number of employees is 80 thousand people.

Organizational Structure

In April 2017, Delta Electronics announced organizational changes to the company. According to the decision of the Board of Directors and the corporate strategy for business development by brands and solutions, the main areas of Delta development will be power electronics, automation and infrastructure. The changes will come into force on May 2, 2017. At the same time, nine divisions will be engaged in the development of solutions, target markets and existing product lines within the framework of the new business management structure.

Power electronics

• Electric Vehicle Solutions BG (EVSBG)
• Embedded Power Solutions BG (EPSBG)
• Commercial Power Solutions (MPBG)
• Components BG (CPBG)
• Fans & Thermal Management BG (FMBG)

Automation

• Industrial Automation BG (IABG)
• Building Automation BG (BABG)

Infrastructure

• Information & Communication Technology Infrastructure Solutions BG (ICTBG)
• Energy Infrastructure Solutions BG (EISBG)

Performance indicators

2020: Revenue growth by 5%, to NT $282.6 billion, profit - NT $25.49 billion

At the end of 2020, Delta Electronics revenue amounted to NT $282.6 billion, which is 5% more compared to 2019. The growth was largely due to sales of uninterrupted power supplies, which grew not least due to the coronavirus pandemic COVID-19. Because of it, people began to work and study more often from home, as a result of which purchases of computer equipment and equipment to support its work increased.

The direction of electrical equipment in 2020 provided Delta Electronics with revenue of NT $155.42 billion, which is 17% higher than sales a year ago. In the segment of automation solutions, there was a 3 percent increase in revenue - up to NT $38.77 billion. On infrastructure solutions, the Taiwanese manufacturer earned about NT $88.19 billion. This is 9% less than 2019.

Sales of electrical equipment, including UPS, occupied 55% of Delta Electronics revenue in 2020. Infrastructure and automation products accounted for 31% and 14% of turnover, respectively.

According to Delta Electronics, in 2020, the company increased research and development costs by 7% (compared to 24% in 2019) to $25.5 billion. About 9% of revenue was spent on R&D, which is approximately the same as a year ago. In 2020, the company as a whole restrained research and development costs in the face of uncertainty associated with the coronavirus pandemic (hence a significant decrease in the rate of R&D budget growth)

Delta Electronics in 2020 received a net profit of NT $25.49 billion, which is 10% higher than the previous year's net profit of just over NT $23 billion. Net profit against revenue amounted to 9%, while in 2019 this share figure was 8.6^[1]

Business in Russia (Dalta Energy Systems LLC)

The Russian subsidiary of Delta Electronics Group specializes in the sale of uninterrupted DC and AC power supplies (with a power range from 600 VA to 4 mVA, single-phase and three-phase configuration). The geography of the projects implemented by Delta Electronics covers the territory of all of Russia, including the most remote regions.

Delta Electronics Partner Program

Delta Electronics Main Article Partner Program

2018: Launch of UPS & Data Center Solutions Partner Program

Delta Electronics announced the launch of a partner program for UPS and data center solutions from October 1, 2018. The main goal of the program is mutually beneficial long-term cooperation with a wide pool of leading market players. More details here.

2015: Opening of a training center in Russia

On August 27, 2015, Delta Electronics announced the opening of the company's first training center in Russia. Its opening is dedicated to the 10th anniversary of Delta Electronics in Russia.

Russia is the fifth country where the Delta Electronics training center was created, which emphasizes the importance for the company of the Russian region.

Training Center Opening Ceremony, 2015

The training center features a wide range of Delta Electronics uninterruptible power supplies (models from the Amplon, Ultron and Modulon families), a layout of the Delta Infrasuite system within the data center, and a precision cooling system. RowCool Here, Delta Electronics plans to train specialists, both in theory and in practice, in the use of company solutions.

"We have been going for a very long time to open our training center in Russia. It was very important for us to build a verified unified training system for our partners. Therefore, in the preparation process, we actively communicated with European colleagues, adopted their experience and developed programs of training seminars and courses. Including we regularly conducted field trainings, "said Mikhail Sazonov, head of the Delta Electronics Russia and CIS service service. "We are confident that it will now be much easier for our partners to attend training sessions and pass certification, which not only confirms high competence, but also allows us to independently perform maintenance of our products, commissioning and provide comprehensive technical support."

"The opening of the training center is an important and long-awaited event for us. The fact that the fifth Delta Electronics center in the world has been opened in Russia once again proves the company's orientation towards the Russian market and its development plans in this region, despite the difficult economic situation, "said Mikhail Grebennikov, director of UPS and solutions for Delta Electronics data center. "We hope that the training of specialists in the training center will allow them not only to have an idea of ​ ​ the company's solutions, but also to carry out the highest quality maintenance of Delta Electronics products."

2013-2014: Delta Electronics UPS business in Russia grew amid market collapse

At the end of 2013, Delta Electronics UPS business in Russia grew by about 30%, director of UPS and data center of the company Charles Tsai told TAdviser in October 2014.

He noted that despite the general decline in the Russian UPS market after several years of its active growth and the difficult political and economic situation in the country, the company expects a comparable level of growth in its business in 2014. Earlier, under more favorable conditions, the business grew at a rate of at least one and a half times a year, since the company was a relatively new player in the market, he added.

Delta Electronics' UPS business in Russia grew against the backdrop of an overall significant market decline: for example, according to IDC, in 2013 it "sat" by about 24% in piece and 13% in monetary terms, and according to ITResearch estimates, the drop was 17% and 9%, respectively.

Charles Tsai calls the main drivers of UPS business growth in Russia how the management of the partner channel is built (the level of partners themselves, transparent pricing policy, partner support). Today, the company in Russia has three distributors: the monovendor Tempesto, Landata and Spectrum RS, based in St. Petersburg and Yekaterinburg. The number of partners who purchase UPS from these companies is in the hundreds, Delta Electronics says.

The second growth driver in Delta Electronics is called new products that the company constantly brings to the market, and another is the introduction to the market of new, complex engineering solutions for data centers, which, in addition to directly UPS, also include power distribution cabinets, PDU modules, cooling, monitoring, etc. Often customers buy all these elements from different suppliers, and in this case they can buy everything from one, explains Charles Tsai.

Speaking about the structure of the UPS business in Russia, the company provides data that the segment of "heavy" systems (with a capacity of 160 kVA) accounts for about 30% of sales, about the same - for the segment of UPS of small capacity, and about 40% - for UPS of medium capacity.

Sales of medium-capacity UPS, both modular and stand-alone, show the highest growth rates. Steady growth is also observed in the segment of "heavy" UPS. Charles Tsai notes that if earlier UPS of small capacity prevailed in Russia, now, by analogy with the global trend, he sees a tendency to "weigh" the devices supplied to the Russian market.

Regarding his company's strategy in the direction of UPS in Russia, Charles Tsai highlights several main points: investments in highly qualified personnel and a course to shift the company's positioning from a UPS supplier to a supplier of a set of solutions for data centers. According to him, at the moment the staff of the Russian representative office Delta Electronics is about 20 people, and the company plans to expand the staff.

The third point in the strategy, the top manager of Delta Electronics identifies the availability of products and their support, as well as the high quality of products, and the fourth - to ensure the maximum presence of the company in the main vertical markets by expanding the partner network.

Speaking about the peculiarities of the demand for UPS in Russia, the director of the UPS and data center Delta Electronics notes that, unlike Western countries, Russian customers give priority to the reliability of technology, and the second most important is the price of the product. At the same time, in Europe, first of all, efficiency is important, and then the total cost of ownership.

In addition, on average around the world, online UPS technology prevails over offline, while in Russia - 55-60% is the latter. However, as in the case of "heavy" UPS, the Russian market is moving towards a global trend, Delta Electronics notes.

2012: Deliveries to RIA Novosti, Russian Railways, Lukoil, VTB24

In 2012, UPS with a capacity of about 1 MW were installed in RIA Novosti. Delta Electronics equipment operates at Russian Railways facilities, LUKOIL Data Center, VTB24, Gazprom-Space Systems.

For 2012, Delta has two own warehouses in Russia, a service center and an extensive sales structure. The company intends to expand its regional presence and service support. Representatives of the Moscow office want to put the case in such a way that in every major city of Russia the company has an effective service partner.

2009: Mail.ru - the first major client in Russia

The first major supply of AC UPS took place in 2009 at Mail.Ru. Almost the entire technology system of this Internet company is supported with the help of the Delta UPS group with a total capacity of 4 MW.

History

2022: IT failure due to ransomware attack

At the end of January 2022, Delta Electronics was attacked. ransomware Conti Malware is classified by experts as very dangerous due to possible damage to the ON device. enciphering Files can use robust encryption algorithms that prevent files from opening.

The attack occurred on January 21, 2022, and affected uncritical information systems. Delta Electronics said in a statement that the company has activated security mechanisms related to information security and a number of scenarios in emergencies. As of January 28, 2022, Delta Electronics was gradually recovering the affected systems, and there was no significant impact on its activities. The company added that it notified law enforcement agencies and hired information systems consultants to investigate the attack and improve network security.

Cybercriminals continue to attack organizations that provide services or products to larger companies, hoping that they will not be able to suffer from downtime due to ransomware attacks and will tend to pay faster. Though the attack was considerable, it seems, that the organizations took necessary actions for protection of the crucial equipment and systems in the business as, apparently, hackers aimed at corporate systems, - the expert in information security of KnowBe4 James McQuiggan told.

Delta Electronics is a major supplier of power components for Apple and Tesla, and also produces a number of products: built-in power supplies, cooling fans, electromagnetic interference filters, solenoids. Among other products the company is working on are electric car chargers, industrial automation solutions and data center infrastructure.

Delta Electronics did not disclose the type of ransomware virus involved in the attack, but Bleeding Computer reported that Conti was behind the attack - this is a ransomware program that has been observed since 2020. All versions of Microsoft Windows are known to be affected by this problem. The ransomware virus demanded a ransom from Delta in the amount of $15 million, according to the publication, the virus encrypted 1.5 thousand and 12 thousand computers from about 65 thousand devices in the company's network. Interestingly, Delta Electronics also entered into negotiations with hackers, it was about a possible payment in exchange for a decoder and a promise not to drain the stolen data.^[2]

2021: Investing in the developer of AI chips for cars and video surveillance systems Kneron

At the end of April 2021, the developer of AI chips for unmanned cars and drones Kneron attracted $7 million in investments from the Taiwanese supplier of power components for Apple and Tesla Delta Electronics. The total amount of funds raised by the startup increased to more than $100 million. More details here.

2020: Purchase of Trihedral Engineering IIoT developer for $32.8 million

On May 29, 2020, Delta Electronics announced the signing of a binding agreement to purchase a 100% stake in Trihedral Engineering. The deal amounted to 45 million Canadian dollars (approximately $32.8 million). More details here.

2019

Record revenue of 268.13 billion Taiwanese dollars (an increase of 13%)

In 2019, Delta Electronics earned 268.13 billion Taiwanese dollars ($8.94 billion - this figure is indicated in the company's financial report) against 237.02 billion Taiwanese dollars a year earlier. Thus, consolidated sales rose 13%.

For half of the revenue, Delta Electronics exceeded sales of electrical equipment and related components. The share of devices used in information and communication environments and energy infrastructure was 36%, and the remaining revenues (14%) were occupied by the sale of equipment for industrial automation and building automation.

The direction of electrical equipment brought the company revenue in 2019 in the amount of 133.07 billion Taiwanese dollars, which is 24% more than a year earlier. The automation solutions segment registered a 7 percent increase in turnover - up to 37.61 billion Taiwanese dollars. On infrastructure decisions, the vendor earned 96.72 billion Taiwanese dollars, which is 4% more on an annual basis.

It follows from the annual financial statements that in 2019 Delta Electronics increased research and development costs by 24%, they reached 23.9 billion Taiwanese dollars. 8.9% of revenue was spent on R&D, compared to 8.1% in 2018.

Delta Electronics ended 2019 with a net profit of 23.9 billion Taiwanese dollars ($798.12 million), which exceeds the profit of a year ago of 18.65 billion Taiwanese dollars.

The company's profit in the field of electrical equipment (including UPS) in 2019 turned out to be 15.15 billion Taiwanese dollars against 11.56 billion Taiwanese dollars in profit a year earlier. Profits in automation technologies during this time decreased from 4.3 to 3.28 billion Taiwanese dollars, and in the infrastructure business, profits fell from 6.88 to 6.41 billion Taiwanese dollars.^[3]

Purchase of Amerlux LED developer for $90 million

In March 2019, Delta Electronics announced the acquisition of LED solutions developer Amerlux and is set to close the deal in the second quarter. The purchase price is $90 million, but Delta Electronics will have to pay an additional amount if EBITDA profit and Amerlux revenue for the year reach certain values. EBITDA is an important measure of profitability for companies with large capital expenditures. More details here.

2018: Record revenue of 237.02 billion Taiwanese dollars (up 6%)

In 2018, Delta Electronics revenue amounted to 237.02 billion Taiwanese dollars (about $7.66 billion at the exchange rate as of March 14, 2019), which is 6% more compared to the previous year. Sales turned out to be record, but the company does not intend to stop there and expects a further rise in 2019.

Almost half (49.45%) of Delta Electronics's turnover came from the supply of electrical equipment and related components. The share of devices used in information and communication environments and energy infrastructure was 35.51%, and the share of equipment for industrial automation and building automation was 14.39%.

The chairman of the board of directors of Delta Electronics Yancey Hai, commenting on financial results of the company, noted the growing demand for the electrofeeding decisions, cooling systems and uninterruptible power supply units for data centers and also on components and devices for electric vehicles, the systems of industrial automation and floating floating wind turbines.

According to Yanci Hai, the data center market remains growing due to the fact that the largest Internet companies are building more and more data centers to cope with growing traffic.

Delta Electronics, which supplies solutions for Tesla Motors and leading Chinese electric vehicle manufacturers, expects revenue growth in this market to $500 million in 2022.

As for components and devices used in industrial automation, Delta Electronics has focused on the Chinese market, but is also expanding in Southeast Asia, the USA, South Africa, Japan and some other countries.

At the end of 2018, Delta Electronics received a net profit of 18.2 billion Taiwanese dollars ($588.4 million), which is 1% less than the profit for the previous year.^[4]

2016

Revenue growth by 4% to 214.4 billion Taiwanese dollars

In 2016, Delta Electronics revenue grew by 4%, while net profit decreased slightly. The Taiwanese manufacturer of uninterruptible power supplies published a financial report and announced the reorganization.

In 2016, Delta sales amounted to 214.4 billion Taiwanese dollars (about $6.6 billion) against 203.5 billion Taiwanese dollars a year earlier. Net profit reached 19.3 billion Taiwanese dollars ($597.2 million).

Meanwhile, in April 2017, Delta Electronics announced a restructuring in which the Taiwanese company outlined the main areas of business development and replaced the president.

Delta's board of directors approved that from May 2, 2017, the company will focus on the following segments: power electronics, automation and infrastructure. Nine divisions will develop solutions, target markets and existing product lines within the new business management structure.

In early July 2017, Delta President and CEO Johnson Lee will transfer his authority to Simon Chang, senior vice president and head of industrial automation.

Johnson Lee was appointed president of Delta in 2012. Since then, he has been responsible for developing global goals and strategies for business units, as well as developing regional sales. He leaves the company "in accordance with a personal career plan," said Yancey Hai, chairman of the company's board of directors.

From the Delta Electronics report, it follows that in 2016 the company paid employees a total of $3.45 million against $3.69 million a year earlier. Total staff costs (including, for example, hospital fees and taxes) reached $37.4 million.

A little more than half of Delta Electronics revenue in 2016 fell on the Chinese market. In the United States, the company earned 39.6 billion Taiwanese dollars ($1.2 billion). The report does not provide data on Russia.^[5]

Overview of Business Directions

For 2016 Delta - solution provider in the field of uninterrupted food, regulation of tension and devices of protection for crucial objects in telecommunications, the oil and gas industry and other spheres and also infrastructure energy saving decisions for the data-processing centers (DPC).

The range of activities of Delta Group includes the development and production of projection systems, LED solutions, automotive electronics, network equipment, as well as the segment of renewable energy sources, equipment for industrial automation, components for IT and telecommunications equipment.

Power electronics:

• Embedded power supplies;
• Mobile power supplies;
• Power supplies for industry and medicine;
• Fans and thermal control systems;
• Electronic components for ICT equipment.

Power Management:

• Industrial automation;
• Power supply systems for telecom;
• UPS and solutions for; DPC
• Automotive electronics and charging stations for electric vehicles;
• Renewable energy.

Intelligent Green Solutions:

• Network equipment;
• Projection systems;
• Lighting systems;
• Medical equipment.

2015

Revenue - 5.74 billion euros

In 2015, Delta Electronics revenue amounted to 5.74 billion euros, and net profit - 555 million euros.

Expansion into the Eastern European market

On October 28, 2015, Delta Electronics announced the opening of two facilities equipped with modern equipment. An exhibition hall was created on the territory of the plant in Slovakia, and in Russia the Mission Critical Infrastructure Solutions (MCIS) division opened the first training center.

The opening of the company's exhibition hall in Slovakia is due to the increase in the market in this Eastern European country. The exhibition hall is located at the largest plant in the EMEA region with an area of ​ ​ 72 thousand ^m2 in the city of Dubnica nad Vag, in the north-west of Slovakia.

On August 27, 2015, the company announced the opening of a training center in Moscow, the first in Russia. Delta Electronics is actively expanding the range of products in the field of technology for data centers, telecommunications and industrial power sources.

At the training center, the company introduced a wide range of Delta Electronics uninterruptible power supplies from the Amplon, Ultron and Modulon families, the Delta Infrasuite system for data centers with precision cooling RowCool.

Taking into account a wide range of pulse power supplies and guaranteed power supply (UPS) solutions produced by the company, Delta Electronics plans to use the Moscow Training Center to train specialists, increasing the level of knowledge about its equipment and its features. The training center also plans to train partners of the company, who now become available to attend courses and receive certificates confirming high competence in the field of sales and support of Delta Electronics solutions in Russia.

"Today, about 20% of Delta Electronics turnover in the EMEA region is provided by our division in Russia and the CIS countries," said Mikhail Grebennikov, Director of UPS and Solutions for Delta Electronics Data Center. - In addition, Slovakia has a strong market position. Before the opening of the training center in Moscow, our specialists traveled to this country for training and qualification confirmation. And now the company is investing its resources in Russia, as the demand for solutions for the telecom industry and industry in the country is growing, and in Slovakia, where the largest plant in the region is located and production capacities are especially large. "

2011: Turnover 7 billion euros

In 2011, Delta Electronics turnover amounted to more than 7 billion euros with a staff of 70,000 people in 87 countries. Delta Electronics invests heavily in the development of innovative potential - there are currently 55 research laboratories in the world that provide leadership in the field of efficient use of electricity.

• Power electronics - the bulk of revenues (60%) come from power electronics. This product group includes power supplies, thermal control solutions, and other power components.

• Sales of power management systems give 27% of Delta Electronics's budget. This product group includes equipment for industrial automation, automotive electronics, renewable energy sources - wind generators and photovoltaic inverters.

• Green technologies: displays and projection systems, network equipment, LED lighting solutions, medical devices. This product category accounts for 13% of the company's income.

As of 2011, Delta Electronics is developing the world's widest range of power electronics solutions, from telecommunications stations to 10,000 A large-scale power plants; The company provides a full cycle of production and maintenance of products: R&D, development, design and manufacture, installation and commissioning, training and technical support.

The new Delta Electronics ideology - SolutionE - allows you to ensure a comprehensive increase in energy efficiency at various levels of the enterprise, while ensuring uninterrupted energy supply and environmental safety of production; The energy efficiency, reliability, high efficiency and long time between failures of Delta Electronics allows you to significantly optimize the total financial costs of supporting the enterprise's energy system.

The modern level of development of the economy and technologies is characterized by a constant increase in the consumption of thermal and electric energy and, as a result, toughening the requirements for energy efficiency and environmental safety of facilities. Delta Electronics is one of the world leaders in creating comprehensive, innovative, environmentally sound solutions for the telecommunications, industrial, energy, medical, banking and automotive industries. Delta's innovative solutions help customers around the world ensure uninterrupted power and energy efficiency while maximizing air emissions and continuously improving the cost-effectiveness of power plants and IT infrastructure.

One of the most important activities of Delta Electronics is R&D. Today, 44 research laboratories around the world realize the innovative potential of the company. Delta's research and development is aimed at creating comprehensive energy-efficient solutions and optimally meeting the needs of customers in all parts of the world. The company has over 2,000 patents in uninterruptible power supplies alone.

Delta Electronics creates solutions, including environmentally friendly uninterruptible power supplies Modulon NH Plus - Series, which have energy efficiency of 94%; renewable energy for the telecommunications industry RenE; the revolutionary OutD cooling systems keeping up to 80% of energy, etc. An intelligent data center solution - InfraSuite - includes an environmental management system that allows you to create environmentally sound data centers.

Delta's manufacturing facilities are certified according to the recognized international quality standard ISO 9001 and are designed to create a safe and comfortable working environment, minimizing waste, emissions, energy and water consumption. In particular, the eco-office in Taiwan and Delta's most modern plant in Rudrapur (India) use environmental energy conservation methods and a waste management system, preserving the biological diversity of the environment.

2010: Turnover 6 billion euros and 60 thousand employees

In 2010, Delta Electronics turnover amounted to more than 6.6 billion euros with a staff of 60,000 people in 87 countries. The company's production base is represented by 36 plants in all major markets in Asia, Europe and America. Delta Electronics invests heavily in the development of innovative potential - at the moment, 44 research laboratories are operating worldwide, providing the company's leadership in the field of efficient use of electricity.

1970s: Production of television coils

Everything began with the production of loop television coils and frequency converters. In the 1980s, the company's sales reached $100 million a year, and Delta launched an offensive on the markets of the United States, Europe, Japan and other countries.

There are many unique achievements in the history of Delta Electronics:

• creating an environmentally friendly electric engine for the automotive industry;
• construction of the world's largest alternative power supply systems for stadiums,
• construction of eco-buildings around the world, etc.

Notes