TE Connectivity plc is a global industrial technology leader creating a safer, sustainable, productive, and connected future.
The company’s broad range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology, and more.
Segments
During fiscal 2024, the company operated through three reportable segments: Transportation Solutions, Industrial Solutions...
TE Connectivity plc is a global industrial technology leader creating a safer, sustainable, productive, and connected future.
The company’s broad range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology, and more.
Segments
During fiscal 2024, the company operated through three reportable segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.
Transportation Solutions
The Transportation Solutions segment is a leader in connectivity and sensor technologies. The primary products sold by the Transportation Solutions segment include terminals and connector systems and components, sensors, relays, antennas, and application tooling. The Transportation Solutions segment’s products, which must withstand harsh conditions, are used in the following end markets:
Automotive (75% of segment’s net sales)—The company is one of the leading providers of advanced automobile connectivity solutions. The automotive industry uses the company’s products in automotive technologies for body and chassis systems, convenience applications, driver information, infotainment solutions, miniaturization solutions, motor and powertrain applications, and safety and security systems. Hybrid and electronic mobility solutions include in-vehicle technologies, battery technologies, and charging solutions.
Commercial Transportation (15% of segment’s net sales)—The company delivers reliable connectivity products designed to withstand harsh environmental conditions for on- and off-highway vehicles and recreational transportation, including heavy trucks, construction, agriculture, buses, and other vehicles.
Sensors (10% of segment’s net sales)—The company offers a portfolio of intelligent, efficient, and high-performing sensor solutions that are used by customers across multiple industries, including automotive, industrial equipment, commercial transportation, medical solutions, aerospace and defense, and consumer applications.
The Transportation Solutions segment’s major competitors include Yazaki, Aptiv, Sumitomo, Sensata, Honeywell, Molex, and Amphenol.
Industrial Solutions
The Industrial Solutions segment is a leading supplier of products that connect and distribute power, data, and signals. The primary products sold by the Industrial Solutions segment include terminals and connector systems and components, interventional medical components, relays, heat shrink tubing, and wire and cable. The Industrial Solutions segment’s products are used in the following end markets:
Industrial Equipment (30% of segment’s net sales)—The company’s products are used in factory and warehouse automation and process control systems such as industrial controls, robotics, human machine interface, industrial communication, and power distribution. The company’s building automation and smart city infrastructure products are used to connect lighting and offer solutions in HVAC, elevators/escalators, and security. The company’s rail products are used in high-speed trains, metros, light rail vehicles, locomotives, and signaling switching equipment.
Aerospace, Defense, and Marine (30% of segment’s net sales)—The company designs, develops, and manufactures a comprehensive portfolio of critical electronic components and systems for the harsh operating conditions of the commercial aerospace, defense, and marine industries. The company’s products and systems are designed and manufactured to operate effectively in harsh conditions ranging from the depths of the ocean to the far reaches of space.
Energy (21% of segment’s net sales)—The company’s products are used by electric power utilities, OEMs, and engineering procurement construction companies serving the electrical power grid and renewables industries. They include a wide range of insulation, protection, and connection solutions for electrical power generation, transmission, distribution, and industrial markets.
Medical (19% of segment’s net sales)—The company’s products are used in imaging, diagnostic, surgical, and minimally invasive interventional applications. The company specializes in the design and manufacture of advanced surgical, imaging, and interventional device solutions. Key markets served include cardiovascular, peripheral vascular, structural heart, endoscopy, electrophysiology, and neurovascular therapies.
The Industrial Solutions segment competes primarily against Amphenol, Hubbell, Carlisle Companies, Integer Holdings, Esterline, Molex, and Omron.
Communications Solutions
The Communications Solutions segment is a leading supplier of electronic components for the data and devices and the appliances markets. The primary products sold by the Communications Solutions segment include terminals and connector systems and components, antennas, and heat shrink tubing. The Communications Solutions segment’s products are used in the following end markets:
Data and Devices (65% of segment’s net sales)—The company delivers products and solutions that are used in a variety of equipment architectures within the networking equipment, data center equipment, and wireless infrastructure industries. Additionally, the company delivers a range of connectivity solutions for the Internet of Things, smartphones, tablet computers, virtual reality and artificial intelligence/machine learning applications to help the company’s customers meet their current challenges and future innovations.
Appliances (35% of segment’s net sales)—The company provides solutions to meet the daily demands of home appliances. The company’s products are used in many household appliances, including washers, dryers, refrigerators, air conditioners, dishwashers, cooking appliances, water heaters, air purifiers, floor care devices, and microwaves. The company’s range of standard products is supplemented by an array of custom-designed solutions.
The Communications Solutions segment’s major competitors include Amphenol, Molex, JST, and Korea Electric Terminal (KET).
Customers
As an industry leader, the company has established close working relationships with many of the company’s customers. These relationships allow the company to better anticipate and respond to customer needs when designing new products and new technical solutions. By working with the company’s customers in developing new products and technologies, the company can identify and act on trends and leverage knowledge about next-generation technology across the company’s products.
The company manufactures and sells a broad portfolio of products to customers in various industries. The company’s customers include many of the leaders in their respective industries.
Sales and Distribution
The company maintains a strong local presence in each of the geographic regions in which the company operates.
The company sells its products into approximately 130 countries primarily through direct selling efforts to manufacturers. In fiscal 2024, the company’s direct sales represented approximately 80% of total net sales. The company also sells its products indirectly via third-party distributors.
The company maintains distribution centers around the world. Products are generally delivered to the distribution centers by the company’s manufacturing facilities and then subsequently delivered to the customer. In some instances, however, products are delivered directly from the company’s manufacturing facility to the customer. The company contracts with a wide range of transport providers to deliver its products globally via road, rail, sea, and air.
Seasonality
Typically, the company experiences a slight seasonal pattern to its business. Overall, the third and fourth fiscal quarters (year ended September 2024) are usually the strongest quarters of the company’s fiscal year, whereas the first fiscal quarter is negatively affected by holidays.
Certain of the company’s end markets experience some seasonality. The company’s sales in the automotive market are dependent upon global automotive production. Also, the company’s sales in the energy market typically increase in the third and fourth fiscal quarters as customer activity increases.
Environmental
The company’s operations are subject to numerous environmental, health, and safety laws and regulations, including those regulating the discharge of materials into the environment, greenhouse gas (‘GHG’) emissions, hazardous materials in products, and chemical usage. The company is committed to complying with these laws and to the protection of the company’s employees and the environment. The company maintains a global environmental, health, and safety program that includes appropriate policies and standards; staff dedicated to environmental, health, and safety issues; periodic compliance auditing; training; and other measures. The company also has a program for compliance with the European Union (‘EU’) Restriction of Hazardous Substances (‘RoHS’) and Waste Electrical and Electronic Equipment (‘WEEE’) Directives; the China Administrative Measures for the Restriction of Hazardous Substances in Electrical and Electronic Products (‘China RoHS’) regulation; the EU Registration, Evaluation, Authorization, and Restriction of Chemicals (‘REACH’) regulation; and similar laws.
Research and Development
The company's research and development expenses were $621 million in the year ended September 27, 2024 (fiscal 2024).
History
The company was founded in 1941. It was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in 2011.