Peter Müller is Vice President Product Line Modules at Kontron. He explains the company's new strategy and assesses the opportunities it presents. In doing so, he does not leave out current topics and challenges – and gives an outlook on the group's next activities.

Mr Müller, last year Kontron adapted its brand identity, aiming to be perceived as an expert for IoT applications. What does that mean for the company's strategy?

Peter Müller: Put simply, from now on we are focusing the expertise of the entire Kontron Group on the IoT market. On the other hand, we are completely dispensing with the IT and SAP services area and have sold the division. For this reason, we were able to generate a high cash flow and use the money to strengthen IoT business areas, for example 5G or artificial intelligence (AI). We also rely on mergers and acquisitions (M&A) to build up new technology competencies. We are also expanding our CPU-based hardware business into connectivity and AI and focusing on high-margin segments in industrial, medical, transportation and aerospace.

What consequences does this have for the embedded computer module business?

Little, as we are simply following the Kontron strategy. We want to continue to offer our customers our extensive portfolio of computer modules and processors and generate added value, on the one hand in terms of time to market and on the other hand in terms of integration options. Especially for the 5G area, we are enabling increased connectivity on the modules; for example, we are preparing frameworks for this. On the subject of AI, we are increasingly integrating AI chips from Hailo into our products.

The second major topic in the area of computer modules is a stronger focus on deep-rugged- applications in the areas of transportation, aviation and defence. Here the focus is mostly on soldered components, a very wide temperature range - and all this in a small form factor. Furthermore, all of this should happen as much as possible in accordance with standards, for example COM Express, COM-HPC or SMARC.

Kontron closed the first quarter with record figures. Is this already the effect of this new strategy?

Yes, ultimately this is already a sign of the change in strategy at Kontron, above all the stronger focus on the IoT growth segment. The sale of the IT and SAP business is also having a positive effect. In addition, we are seeing strong growth in the Transportation segment; the subsidiary in France in particular has contributed a lot to sales.

Author - Tobias Schlichtmeier