This article was originally published in the Brand Finance Thailand 50 2024 report.
Delta Electronics is a notable new entrant to Brand Finance’s most valuable Thai brands in 2024. With a brand value of USD968 million complemented by a AA+ brand strength rating, the company ranks as the 13th most valuable brand in our latest report. In this interview with Brand Finance, Victor Cheng, CEO, Delta Electronics, Thailand, talks about the major milestones and strategies that have propelled the brand's growth from its modest beginnings.
Interview with Victor Cheng.
CEO,
Delta Electronics
Thailand
What would you consider as the defining moments or milestones in building and strengthening Delta Electronics’ brand since it was established in 1971?
Delta Electronics Thailand was established in 1988 as Delta Group’s first overseas location and put us on a growth trajectory to become a global provider of power and thermal management solutions. Delta Thailand first produced electronic components and grew to serve global customers including leading tech and automotive companies.
In 1995, Delta Thailand was listed on the Stock Exchange of Thailand, and we now have the highest market capitalisation among Thai-listed electronics companies. We are an important and growing part of the Delta Group for manufacturing R&D, businesses and services with consolidated revenue now exceeding USD4 billion.
In 2024, we celebrate our 35th anniversary in Thailand with increasing investment in R&D and manufacturing operations which demonstrates our commitment to talent and supply chain localisation and create outstanding value for our global customers.
What are the key trends you envisage as being the most important in the electronics industry over the next three years and how can electronics brands navigate or capitalise on these trends?
Risks like global warming, geopolitical tensions and logistical bottlenecks are driving the electronics industry toward distributed manufacturing for greater resilience and sustainability.
Delta identifies the following as key trends:
- Electrification: The need for a low-carbon society and efficient power for industry, buildings and transportation provides new opportunities for efficient electrical systems, renewable energy and e-mobility.
- Automation and digitalisation: Industry 4.0, labour shortages and ageing workforces are driving industrial automation demand. E-commerce growth, with advancements in AI
and IoT, is fueling the demand for digitalisation to boost productivity. However, these trends also present challenges in upskilling and recruiting talent for digital transformation.
Delta strives to adapt by:
- Aligning our businesses to global megatrends and developing solutions based on our core competencies in power conversion and thermal management. This led us to develop power systems for data centers, ICT and telecom infrastructure and power electronics for EVs.
- Re-organising and investing in local talent development and local supply chain as part of our global + local or “glocalisation” strategy. Staying close to our customers helps us ensure timely delivery, customised products and services and a lower carbon footprint.
- Leveraging our power efficiency expertise to be sustainability leaders. Our green products, operations and supply chain comply with international environmental, social and governance (ESG) standards to satisfy our global customers and eco-conscious consumers in the market.
How has the brand adapted to emerging trends and technologies, and how has this influenced Delta Electronics’ brand positioning in the market?
With the emergence of AI technology and smart city/ factory/home trends, electronics and communications companies are rising in prominence.
Delta is positioning itself as an “Industrial + Commercial” brand with offerings for both industry and market consumers with taken actions including:
- Leveraging our power conversion expertise to develop automotive powertrain products for OEM EVs and developing original brand EV chargers for drivers. Today, EV parts production for OEM/ODM customers is Delta Thailand’s largest business and around one-third of our total revenue. Delta EV chargers have also gained market-leading positions in Indonesia and Thailand.
- Acquiring expert firms from the USA, Europe and Asia to form a robust industrial and building automation solution ecosystem. In Thailand, we partner with leading property developers to implement ventilation solutions powered by Delta’s DC fans with 99.6% PM2.5 filtration among other building automation solutions.
