Up to 90% of Cypress Technology's products are exported, and nearly 70% of its customers are in North America. In recent years, it has also begun to actively develop product lines for vertical markets. Chairman Norton Tsai pointed out that in order to insulate existing customers and markets within North America, they will build a distinct channel, based in the UK, to market its "CYP" branded products within Europe. They will extend their advanced audio-visual signal processing and application technologies to different vertical markets. In areas such as the medical market, they will provide high-end medical image display solutions. The following is a summary of the interview with Chairman Norton Tsai:
Question:
What is the plan for the Cypress Technology brand?
Answer:
Starting with the "CYP" brand refresh, Cypress
Technology has been gradually refining our path forward while taking our
traditional customers’ business into consideration. Therefore, the United
States, which holds the majority of our customers, will not be touched. Thus,
we will focus on the European, Southeast Asian, and other similar markets. Because
the market is huge there are still plenty of opportunities open to us. However,
building a brand must first start with training personnel, and then expanding
the scope of our product lines into new fields, such as medical.
In recent years, Cypress Technology’s action plan has been both innovative and successful. Our goal is to reach a fifty-fifty split between brand name and ODM revenue within three to five years, achieving a truly golden intersection. Cypress Technology is gradually becoming stronger and more influential within the industry it belongs, gaining a higher visibility and reputation in the market.
Question:
What is the current progress within the medical market?
Answer:
Cypress Technology had previously invested in the
medical field for about four or five years, but it was still not enough and we
could only produce some demos. However, in November of last year, we formally
invested in the Twin Beans Ltd. Corporation, a manufacturer of medical imaging
solutions. With an investment amount of NT$21 million, we currently hold 49% of
Twin Beans Ltd. Corporation’s shares.
The medical imaging solution produced by Twin Beans
meets the needs of physicians and can solve many pain points experienced by
them. Through this cooperation with Twin Beans, Cypress Technology can enter
the medical industry field faster, each of us providing our own expertise to develop
the market together.
In other words, within the medical field, Cypress
Technology will develop the hardware while Twin Beans will develop the software
functionality. Additionally, Cypress Technology will focus on export markets,
while Twin Beans will focus on the domestic market. In the future, with Twin
Beans, medical business will be booming in the Taiwan market, and there will be
opportunities to promote the company's products abroad.
At the same time, we are also planning to apply for ISO 13485, a medical devices certification, to lay additional foundation for the current medical product market.
Question:
Are there any other plans for investment, merger, or acquisition?
Answer:
Mergers and acquisitions are still under evaluation. The company hopes to increase our foreign business management and international trade personnel. In the future, the company will send our outstanding talent to our overseas affiliates.
Question:
What is the company’s development strategy for the
future?
Answer:
Cypress Technology will continue to expand our product
applications across commercial and professional markets such as smart homes,
education, medical imaging, and venue displays. This will be done through
investment in our British subsidiary to expand our own brand, and through a
sales partner model with distributors in regions with lower turnover to jointly
develop their local markets and strengthen the European and Middle Eastern markets
(EMEA).
Cypress Technology has four main development points.
First, strengthen the R&D team by bringing in programming talent that caters
to the development trends of mobile communications, audio-visual streaming, and
smart home applications in order to lead those markets when developing new
products. Second, insist on giving priority to quality, improve production
efficiency, and make full use of the new plant's capacity expansion. Third,
establish a vertically integrated supply chain model with customers and
suppliers to achieve a win-win situation. Fourth, strengthen cooperation with
strategic alliances of reinvestment businesses and jointly expand the European
market.