Innovating Melexis through Understanding Customer and Applications

                           Marc Biron, Melexis CEO   

If you buy a new car after 2023, it will likely contain about 20 Melexis products. If the model is a high-end one with many options, it could contain up to 200 products. This is proof that Melexis is trusted by automotive customers worldwide, including in our country. I asked Marc Biron, CEO of Melexis, about the secrets behind Melexis' ability to design with customers worldwide for current and future cars.     

Text by Bumjin Yoon _  bjyun@autoelectronics.co.kr 

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You became the CEO of Melexis in 2021. You've been with the company for a long time. Can you tell us about your most impressive experience?
Biron: When I first took office, the pandemic was in full swing. In such an unpredictable and uncertain situation, we adopted new work methods and tried to adapt to them. The company tried to provide a more flexible work environment, allowing employees to choose between commuting and remote work. This change aimed to create the most productive environment, and it was a significant transformation.

Moreover, it was a challenging time due to the semiconductor supply shortage. This crisis affected not just us but the entire automotive semiconductor industry. We put considerable effort into managing the situation and balancing supply to support our customers as much as possible. I thought a lot about the qualities of good team members: they should be humble, passionate, and smart (emotionally intelligent). We strive to create the best environment for everyone to perform well, encourage self-motivation, and foster entrepreneurial spirit. We enable quick decision-making and promote innovation and forward-thinking by reducing communication lines between departments and integrating business unit and development teams.


You mentioned that it’s important to meet the expectations of Asian customers. What was the background behind this statement, and how did you actually address it?
Biron: Ten years ago, the automotive industry centered on internal combustion engines, primarily in Europe and Germany. However, as it shifts to e-powertrains, the regional focus is significantly moving from Europe to Asia. The expectations of Asian customers differ from those of European customers, including Germany. This means that we have to constantly evolve our culture and working methods, in line with the world around us. Additionally, electric vehicles (EVs) were a niche market in the past with limited scale and competitive opportunities, but now the market has grown and competition is fierce. Melexis had to respond to all these changes.

How did we respond to these changes and needs? Melexis is a mid-sized semiconductor company with around 2000 employees. We consider ourselves an 'innovation company.' Thus, by meeting customer expectations and providing innovative ideas and products, we've successfully adapted to these changes. For Asian customers, reducing lead times is crucial. They want to shorten the renewal cycle of car versions. Some OEMs have cycles as short as 15 months. To keep up with such speed, our work methods and corporate culture have to evolve. Enhancing employee autonomy and entrepreneurial spirit, as well as adapting to Asia's 'ppalli-ppalli' (hurry-up) culture, we become more like a startup to provide cost-effective solutions and quickly respond to specific product requirements.

Most of Melexis' revenue comes from the automotive sector. Can you introduce the key products and technologies that contribute to this standing?
Biron: According to statistics, between 2023 and 2024, if you buy a new car, it will contain about 20 of our products. If it's a high-end model with many options, it could contain up to 200 Melexis products. We call ourselves a 'Sense & Driving Company.' We develop and produce advanced chips for the automotive industry that provide the parameters necessary to operate various valves and actuators. Our main market is the automotive industry, accounting for 90% of our revenue. In the past, robustness was emphasized along with internal combustion engines. Now, with trends such as electronic steering, electronic braking, advanced driver assistance systems (ADAS), safety, electric and autonomous driving, and software-defined vehicles (SDVs), the hardware supports the software. We stand out with integrated semiconductor sensor products that enhance safety, security, convenience, and performance while reducing application costs. Our focus spans five domains related to these trends: EV powertrain, EV battery, EV thermal management, lighting, and fifth is e-brakes /  e-steering, with a plan to achieve an annual growth rate of 10% by 2030.


What is the secret to Melexis being a long-time choice for automotive customers?
Biron: There are several reasons, but primarily it's 'innovation.' Innovation means understanding customer needs and Melexis has been supporting and providing value to customers in this regard. Our engineering and sales teams always engage with customers to understand their applications and listen to their issues. We don't want 'me-too' products. We strive to always provide new and innovative products, adding new functions to reduce the cost of specific applications. We integrate functions like sensing, processing, activation, and communication into a single chip, reducing the cost and size of PCBs. Examples include chips for adjusting the color and intensity of interior lighting and non-contact magnetic position sensors. This continuous innovation and product provision are why Melexis is chosen by customers.


A year ago, automotive OEMs faced significant confusion due to a semiconductor shortage, but now the situation is reversed. How does Melexis strive to match supply and demand as much as possible?
Biron: Balancing supply and demand is crucial. The supply shortage was severe, but the situation has improved significantly now. We have made great efforts to increase capacity across the supply chain, working with fabs and assembly plants. We apply a 'Business Continuity Process' to secure maximum backup quantities. Our goals are threefold: first, to increase capacity; second, to prepare for future advanced technologies and features; and third, to reduce risks and enhance supply chain robustness.




If you buy a new car between 2023 and 2024, it will likely contain about 20 Melexis products. If it is a high-end model with many options, it could contain up to 200 Melexis products. Their focus is on achieving an annual growth rate of 10% by 2030 in five domains: EV powertrain, EV battery, EV thermal management, lighting, and e-braking/e-steering.



Are you diversifying your business? What are your goals in different areas?
Biron: Looking back 25 years, the automotive market, which we are now actively involved in, was a niche market with few competitors. We are now applying this approach to non-automotive sectors, defining four applications: alternative mobility, digital health, robotics, and sustainability, which we foresee growing significantly over the next decade. These areas currently account for 10% of our revenue, but we expect substantial growth due to trends like climate change, aging populations, electrification, and automation. We anticipate achieving an annual sales growth rate of over 15% by 2030.

Alternative mobility involves e-bikes and drones. As the population ages, many electronic devices will be applied to and innovated in wearables and digital healthcare for quality of life improvements. Robotics is related to factory automation and logistics. Sustainability means all Melexis applications must be efficient and contribute to CO₂ reduction. For instance, we are working on solar panel monitoring and DC/DC converters to optimize voltage in the solar field and heat pump control.

We are already collaborating with various universities and research centers. For example, we have launched two major research projects with EPFL and are developing biosensors for digital health applications. In robotics, we are developing tactile sensing to measure 3D force in a simple and cost-effective way for cobot joints, requiring high precision and repeatability.







How does Melexis contribute to the sustainable development of the automotive industry?
Biron: Melexis contributes to sustainable development by providing semiconductor solutions that benefit the planet and people. From a global perspective, the most important aspect is reducing CO₂ emissions. Our goal is to reduce CO₂ emissions per product sold by 40% by 2030. Melexis has been focusing on reducing fuel consumption for 35 years, but now we are contributing to sustainability through electrification and more solutions. For example, our current sensors are essential for EV systems like inverters, converters, and battery systems, ensuring safety and efficiency. Sensing for thermal management in EVs is also crucial. EVs generate heat with batteries, reducing driving range, making thermal management vital. To ensure optimal battery performance, we precisely control heating and cooling.


It seems natural for Melexis to enter the robotics field, similar to Hyundai Motor's acquisition of Boston Dynamics. It has been a year since you announced the robotics project. How is it progressing? 
Biron: We believe in the widespread adoption of robots. Cobots already exist and are integrated into our production processes. In Asia, service robots are commonly seen. The future will be humanoids.

To explain Tactaxis, it is a tactile sensor for robots. Currently, robots can perform many functions both mechanically and through software with AI, but they lack a sense of touch. For example, when picking strawberries, they can't adjust the force, causing the strawberries to get crushed. Melexis has already demonstrated Tactaxis in the lab, based on Triaxis® magnetic sensor technology, integrating a sensor that provides a 3D force vector at the fingertips to apply the appropriate force when picking strawberries. We are also adding human-like elements such as slip detection. We are at the proof-of-concept stage and expect to introduce the product by the end of 2025.

Another area we are innovating in is significantly improving the resolution of position sensors for robotic joints, enhancing the joint structure. Robot joints require very high precision and repeatability. They also need high flexibility regarding mechanical tolerances. Here, Arminaxis integrates a new concept of high-resolution position sensing to simplify the calibration process and allow the end customer to overcome difficult constraints regarding mechanical placement. Elaxis is a torque sensor IC for measuring torque in joints, contributing not only to the joints but also to all motor systems equipped with gearboxes. We have demonstrated a method to measure torque applied to very solid shafts in a small, non-contact manner.




In addition to the automotive sector, Melexis is also looking for growth opportunities in four new applications: alternative mobility, digital health, robotics, and sustainability, leveraging their core technologies.



When you think of Melexis, the image that comes to mind is 'hammerhead shark.' How do you want Melexis to be perceived and evaluated by your customers?
Biron: To repeat, the most important image for Melexis is that of an innovative company. This means getting close to our customers, understanding their challenges, and thoroughly comprehending their applications.
Personally, I emphasize a company with resilience, one that is well-prepared for the future while succeeding in the present. It's meaningless to prepare for future success if we can't perform well now. Balancing short-term and long-term business is crucial by continually providing solutions needed by current customers.

Ultimately, we should be perceived by our customers as a company that never gives up. Melexis may not have all the solutions to a particular problem, but we want to be known as a company that never stops working day and night, investing a lot of time until we find the right solution for our customers.


What does the Korean market mean to Melexis, and what are the roles and expectations of the Korean branch?
Biron: Melexis is performing well in Korea, achieving a sales revenue of 70 million euros, which accounts for 10% of our total sales. This shows the significance of our innovative customers in the region. Besides the automotive sector, we have important clients, such as those for whom we provide temperature sensors for smartwatches.

The Korean team consists of sales personnel and application engineers dedicated to actual customer support. They will increase the number of opportunities and maximize design wins. Although the maturity of opportunities in the entire pipeline may vary, it is crucial to seize opportunities with Korean customers and drive them to final design wins.


Finally, is there a message you would like to convey to AEM readers?
Biron: Melexis promises to support our customers well with an excellent product portfolio and a great Korean team. Melexis approaches Korean business and its future with confidence. Korea has strong competitiveness not only in the automotive sector but also in non-automotive fields. The industry is rapidly growing, and when thinking about the marriage of Melexis and the Korean market, I believe there are many opportunities. The values and work styles of Korean customers, such as speed, quality, expertise, and balance, align well with us. For these reasons, I have also purchased a KIA EV6.

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