Advanced Energy Industries, Inc. (Advanced Energy) provides highly engineered, critical, precision power conversion, measurement, and control solutions to its global customers.
The company designs, manufactures, sells, and supports precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of highly controllable, usable power that is predictable, repeatable, and customizable to me...
Advanced Energy Industries, Inc. (Advanced Energy) provides highly engineered, critical, precision power conversion, measurement, and control solutions to its global customers.
The company designs, manufactures, sells, and supports precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of highly controllable, usable power that is predictable, repeatable, and customizable to meet the necessary requirements for powering a wide range of complex equipment.
The company’s products enable customers to reduce or optimize their energy consumption through increased power conversion efficiency, power density, power coupling, and process control across a wide range of applications.
The company operates in the single segment of power electronics conversion products. Within this segment, the company’s products are sold into the semiconductor equipment, industrial and medical, data center computing, and telecom and networking markets.
Airity Acquisition
On June 20, 2024, the company acquired Airity Technologies, Inc. (Airity). This acquisition added high voltage power conversion technologies and products, broadening the company’s range of targeted applications within the semiconductor equipment and industrial and medical markets.
Products and Services
The company’s precision power products and solutions are designed to enable new process technologies, improve productivity, lower the cost of ownership, and provide critical power capabilities for its customers. These products are designed to meet the company’s customers’ demanding requirements in efficiency, flexibility, performance, and reliability. The company also provides repair and maintenance services for its products.
The company’s plasma power products enable innovation in complex semiconductor and thin film plasma processes, such as dry etch and deposition. The company’s broad portfolio of high and low voltage power products is used in a wide range of applications, such as semiconductor equipment, industrial production, medical and life science equipment, data center computing, networking, and telecommunications. The company also supplies related sensing, controls, and instrumentation products primarily for advanced measurement and calibration of power and temperature for multiple industrial markets.
The company’s network of global service support centers provides repair services, calibration, conversions, upgrades, refurbishments, and used equipment to companies that use its products.
End Markets
Advanced Energy generates revenue from the sale of a broad range of advanced and system power products and services to global original equipment manufacturers (OEMs) and end customers. The company’s customers select its products based on various performance metrics, such as high-power conversion efficiency, high power density, and low noise emission, as well as its ability to tailor its solutions to meet the unique requirements of their critical applications. The future growth and demand for the company’s products is driven by a combination of factors within each of the end markets it serves, as follows:
Semiconductor Equipment Market
The company’s portfolio of power conversion and related products includes plasma power, high-voltage power, system power, and adjacent sensing solutions. The company’s plasma power solutions are used to create plasma-based etch and deposition processes. The company’s semiconductor market products are incorporated into a wide range of applications, including dry etch and strip, deposition, ion implant, inspection and metrology, thermal, epitaxy, and back-end test and packaging.
The company’s strategy is to outgrow the wafer fabrication equipment (WFE) market by developing products for applications that are growing faster than market and through market share gains in both plasma power and adjacent semiconductor applications. In addition, the company is targeting to win customer adoptions of the company’s new products to strengthen its positions in its core applications with leading market share, such as conductor etch and deposition, and to grow the company’s market position in targeted applications with lower market share, such as dielectric etch. Finally, the company is targeting to leverage its broad portfolio of system power, thermal and sensing, remote plasma source, and high voltage products to gain share in these adjacent semiconductor applications.
Industrial and Medical Market
The company supplies industrial and medical market with critical, precision power conversion products that deliver precise and highly reliable, low noise and/or differentiated power. In addition, the company’s sensing, control, and instrumentation products complement its power solutions. The company’s products are used in a wide variety of applications, such as advanced material fabrication, medical devices, analytical instrumentation, test and measurement equipment, robotics, industrial production, and large-scale connected light-emitting diode applications. The company serves its broad customer base through both the company’s direct sales force and indirect sales channels, including independent sales representatives and distributors.
The company’s strategy in the market is to penetrate a broader set of applications by expanding the company’s product offerings, leveraging common platforms, providing platform derivatives, and offering customizations. In addition, the company’s strategy is to expand its customer reach in this large, fragmented market through a focused direct sales team on larger and strategic accounts, optimize and leverage the company’s distribution channel, and expand visibility and access to its products through its digital footprint and website.
Data Center Computing Market
Advanced Energy serves as a leading provider of high-efficiency, high-density, server power conversion solutions and technologies with a proven track record of delivering production-ready products. The company’s products are designed into data center server and storage systems, as well as used by cloud service providers and their partners in their custom designed server racks and power shelves.
The company’s strategy in the market is to target high-end, high power, differentiated applications based on its competitive strengths in power density, efficiency, reliability, and speed in delivering next-generation, production-ready products.
Telecom and Networking Market
The company serves this market by providing application-specific AC-DC and DC-DC power conversion products to many leading OEMs of wireless infrastructure equipment and computer networking equipment. The company’s solutions are often customized with unique features, such as ruggedization for mobile radio in the field.
The company’s strategy in the market is to optimize its power conversion products to more differentiated applications and leverage investments across its power portfolio to maintain a position in the most attractive customers and applications.
Customers
The company’s products are sold worldwide to OEMs, distributors, and directly to end users. During the year ended December 31, 2024, Applied Materials, Inc. and Lam Research Corporation accounted for 26% and 11%, respectively, of the company’s total revenue.
Marketing, Sales, and Distribution
The company sells its products through direct and indirect sales channels. The company’s primary direct sales operations are located in the United States (U.S.), Asia, and Europe.
In addition to a direct sales force, the company has distributors that support its selling efforts. The company maintains customer service offices in many of the locations listed above, as well as other sites near its customers’ locations.
Intellectual Property
The company holds numerous U.S. and foreign patents and has multiple patent applications pending in the U.S., Europe, and Asia.
Competition
Semiconductor Equipment: The company’s competitors include COMET Holding AG.; Daihen Corp.; MKS Instruments, Inc.; and TRUMPF Hüttinger GmbH + Co. KG.
Industrial and Medical: The company’s competitors include Cosel Co., Ltd.; Delta Electronics, Inc.; MEAN WELL Enterprises; TDK-Lambda Americas Inc.; TRUMPF Hüttinger GmbH + Co. KG; and XP Power Ltd.
Data Center Computing: The company’s competitors include Acbel Polytech Inc.; Delta Electronics, Inc.; Flex Ltd.; and Lite-On Technology Corp.
Telecom and Networking: The company’s competitors include Acbel Polytech Inc.; Delta Electronics, Inc.; and Lite-On Technology Corp.
Research and Development
For the year ended December 31, 2024, the company’s research and development expenses were $211.8 million.
History
Advanced Energy Industries, Inc. was founded in 1981. The company was incorporated in Colorado in 1981 and reincorporated in Delaware in 1995.