Trio-Tech International Stock

Trio-Tech International (TTI) provides third-party semiconductor testing and burn-in services primarily through its laboratories in Southeast Asia.

In addition, TTI operates manufacturing and testing facilities in the United States. The company also designs, develops, manufactures, and markets a broad range of equipment and systems used in the manufacturing and testing of semiconductor devices and electronic components.

Geographically, the company operates in the United States (U.S.), Singapore, Malaysia, Thailand, and China.

The company's major customers are concentrated in Asia and are either semiconductor chip manufacturers or testing facilities who rely on it to verify that their semiconductor components meet or exceed the rigorous reliability standards demanded for automotive electronics, industrial electronics, computing and data storage, consumer electronics, and communication markets. The company acts as a global one-stop solution for its customers by designing and building reliability test solutions and offering comprehensive equipment services and testing services through its manufacturing facilities and testing laboratories in Asia and the U.S.

Segments

The company operates through four segments: Manufacturing, Testing Services, Distribution, and Real Estate.

Manufacturing

Trio-Tech International (TTI) develops and manufactures an extensive range of test equipment used in the 'front-end' and the 'back-end' manufacturing processes of semiconductors. The company's equipment includes leak detectors, autoclaves, centrifuges, burn-in systems and boards, HAST testers, temperature-controlled chucks, and more. The company also acts as an extended development team of integrated device manufacturers (IDMs) and fabless semiconductor companies in the testing process with its expert technical skills, especially in the New Product Introduction (NPI) process.

Testing

TTI provides comprehensive electrical, environmental, and burn-in testing services to semiconductor manufacturers in its testing laboratories in Asia and the U.S. The company's customers include both manufacturers and end users of semiconductors and electronic components who look to it when they decide to outsource their testing process. The company also supports the asset-light strategy of its customers by setting up test facilities and providing component level, package level, and system level testing services with expert technology that improves the productivity of its customers. The independent tests are performed to industry and customer specific standards.

Distribution

The company's Distribution segment sells a wide range of components and semiconductor equipment. In addition to marketing its proprietary products, the company distributes complementary products made by manufacturers around the world. The products include environmental chambers, mechanical shock and vibration testers, and other semiconductor equipment. The company also distributes a wide range of components, such as connectors, sockets, cables, LCD displays, and touch screen panels. The company acts as value-added resellers by enhancing the value of the distributed products by customizing each to the needs of its customers through its expert engineering, integration, and sub-assembly services. The company also supports its customers as their extended research and development arm in product design, leveraging the expert skills of its component engineers, and design engineers.

Real Estate

The company's Real Estate segment generates rental income and investment income from real estate investments made in Chongqing, China.

Strategy

To achieve the company's strategic plan for its semiconductor business, the company must pursue and win new business in the following areas:

Primary Markets: Capturing additional market share within the company's primary markets by offering superior products and services to address the needs of its major customers.

Growing Markets: Expanding the company's geographic reach in areas of the world with significant growth potential.

New Markets: Developing new products and technologies that serve wholly new markets.

Complementary Strategic Relationships: Through complementary acquisitions or similar arrangements, the company can expand its markets and strengthen its competitive position. As part of its growth strategy, the company continues to selectively assess opportunities to develop strategic relationships, including acquisitions, investments, and joint development projects with key partners and other businesses.

Product Research and Development

The company's research and development expenses were $397 for the year ended June 30, 2023.

Marketing, Distribution, and Services

The company markets its products and services worldwide, directly and through independent sales representatives and its own marketing sales team. The company has approximately five independent sales representatives operating in the U.S. and another twenty in foreign countries. All sales representatives represented the testing services and manufacturing segments for products and services produced and provided from the company's facilities in different locations.

History

Trio-Tech International was founded in 1958. The company was incorporated in 1958 under the laws of the state of California.