DELTA INSIGHTS
Refining core technologies to establish leadership in the energy industry
Interview with Mr. Eton Lee, General Manager of EISBG
Text by BMD 2025/02
In the context of the net-zero trend, energy issues have garnered significant attention and are key drivers of Delta's continuous growth. The 2024 Energy Taiwan & Net-Zero Taiwan exhibition held at the end of last year, along with the newly completed Delta Net Zero Science Lab, have attracted considerable interest. In this issue’s "Delta Insights," we interviewed Mr. Eton Lee, General Manager of EISBG, to share his observations in the energy market, strategic plans, and insights derived from over 30 years of experience at Delta.

Targeting three major areas for market strategy planning
"Our targets are closely related to energy and can be summarized as follows: wind, solar, charging, and storage. By integrating wind power generation, solar power generation, energy storage systems, and electric vehicle (EV) charging, we provide a comprehensive solution that encompasses power generation, conversion, distribution, and consumption." At the beginning of the interview, Eton clearly defined the focus areas and applications of EISBG and categorized its product lines into three main segments: energy management, EV charging, and industrial power supply.

The energy market is undergoing dynamic changes on both the supply and demand sides due to various factors, including the global trend towards net-zero emissions, national energy policies, and the significant electricity demand resulting from the era of AI. These changes present numerous business opportunities. In response to these opportunities, Eton referenced the concept from Sun Tzu's "The Art of War" to share his unique insights, stating, "When selecting a market, one must act in accordance with prevailing trends and seize the opportunities that arise." He identified three key factors: first, the market size must be substantial; when the market share of our product is relatively small, there is potential for growth. Second, it is essential to select growing markets, where the business scale has room to grow. Third, it is important to assess both existing and new competitors. All of these considerations are fundamentally based on Delta's strong technical capabilities in power electronics.

To achieve steady growth, it is essential to continuously pay attention to the threats posed by substitutes and the development of new technologies. "The EV battery swapping stations, which have recently been a topic of discussion, are an area that we need to monitor closely." Eton emphasized that even when focusing on growing markets, it is crucial to continuously track the developments of new technologies to ensure stable growth.

Recently, the hydrogen energy applications have gained significant attention. In this context, Delta's Hydrogen Energy New Business Development Department represents a long-term strategic initiative.

Leverage core technologies to solidify market advantages
In response to the global trend towards net-zero emissions, energy storage solutions play a crucial role in the energy transition. Among the existing energy storage technologies, lithium batteries currently dominate the market; however, the potential applications of hydrogen energy are even broader. At the end of last year, Delta launched the "Delta Net Zero Science Lab" in the Southern Taiwan Science Park, which is Taiwan's first megawatt (MW)-grade Hydrogen R&D Lab for water electrolysis hydrogen production and fuel cells. Eton conducted a thorough market assessment of Delta's investment in hydrogen energy. "The scale of the hydrogen production industry is vast. Delta possesses core technologies in power electronics and thermal management. Coupled with our acquisition of the industry-leading Ceres hydrogen fuel cell stack technology transfer, along with efficient power conversion systems at both the upstream and downstream ends of the supply chain, and combined with Delta's global production sites, we can achieve an 'end-to-end' solution, providing us with a significant competitive advantage in the market."

Currently, Delta is focusing on industry-leading solid oxide electrolyzer cell (SOEC) and solid oxide fuel cell (SOFC) technologies. SOFC can flexibly utilize low-carbon or carbon-free fuels such as natural gas, ammonia, or hydrogen, achieving high-efficiency power generation. Through modular design, the system can scale from kilowatt-level to tens of megawatts, making it suitable for microgrids, distributed energy supply, and high-efficiency power generation, providing stable and low-carbon power support for major electricity consumers such as wafer fabs, panel factories, and AI data centers. SOEC, on the other hand, combines customers' process waste heat to produce hydrogen through steam electrolysis, making it applicable in the steelmaking, ammonia production, and synthetic fuel industries. This effectively reduces electricity demand and assists the steel and petroleum industries in carbon reduction, promoting the transition to carbon-neutral fuels, such as Sustainable Aviation Fuel (SAF).

Delta Net Zero Science Lab has developed Taiwan’s only SOEC/SOFC battery stack performance testing facility in Taiwan. Collaborating with the Taiwanese supply chain, it promotes the localization of materials and leverages its strengths in energy infrastructure integration to develop technologies ranging from hydrogen production to system integration, providing efficient and stable hydrogen energy solutions.
Eton (5th from the left) guided the guests and took a group photo in front of Delta Net Zero Science Lab.

Cross-department collaboration to expand market territory
In addition to forward-looking technologies, the EISBG has also expanded into various industries through a cross-BG collaboration model. During the collaboration, the capabilities and strengths of each BG are leveraged to collectively meet customer needs. "From the group's perspective, the objective is to increase market share, ensuring everyone can align with this goal," Eton emphasized. Cross-department collaboration should prioritize the overall benefit for the group, with a clear delineation of roles and responsibilities. This clarity allows participants to understand their contributions and work together for the greatest advantage. "If this matter becomes entangled in individual or BG KPIs, achieving success will be challenging." Whether through profit sharing or a moderate sacrifice of some profits, as long as the group's interests are prioritized, the objectives become clear, and conflicts can be minimized, enabling everyone to jointly expand market share.

Establishing interim goals to build leadership in the energy industry
In response to the rapidly changing market, Eton defines objectives for each stage and sets expectations for the team. The short-term goal focuses on improving the quality and enhancing the technology of the existing product lines while actively capturing market opportunities. He also mentioned that PVI remains a high-growth market, and EISBG is committed to investing in new product development and refining quality management in 2024, with plans to gradually launch products in 2025 to seize the opportunities.

The medium-term goal is to allocate additional resources to specific technology development upon identifying strategic turning points. Taking Solid State Transformer (SST) products as an example, "we first target research units, laboratories, and universities of large enterprises to conduct proof of concept (POC). Once the technology reaches a mature stage and can be widely adopted, we will gain a first-mover advantage." By clearly defining target customers and establishing a leadership position in specialized fields, we lay a solid foundation for future growth.

"In the context of the global trend towards achieving net-zero emissions, there is significant growth potential for EISBG." When discussing long-term goals, Eton confidently expresses that EISBG will continue to allocate resources, with four New Business Departments (NBD) focusing on the development of emerging fields such as solid-state transformers, energy storage system solutions (ESS), hydrogen energy, and green electricity trading, with the aim of becoming the growth engine for the next phase. "NBD has commenced the planning and development of products at an early stage; for instance, in the promising field of hydrogen energy technology, we aim to rapidly accumulate relevant technologies to seize the opportunities."

Empowerment and authorization: building a 100-point team 
"I do not expect everyone to score 100 points, but I believe the team can achieve 100 points!" Eton emphasizes the importance of complementarity among team members. The primary responsibility of a supervisor is to identify key decision-making factors and, when necessary, guide and align the team's ideas. Eton's management style, characterized by "empowerment and delegation," is neither entirely laissez-faire nor authoritarian. He prioritizes listening to members’ perspective, responding to their personalities, and guiding them toward a common direction. Since his appointment, EISBG has conducted several "Town Hall Meetings," which allow colleagues to express their thoughts freely and provide on-site feedback.

"Top-down approaches fulfill the numerical targets established by management, whereas bottom-up approaches encourage individuals to set their own goals. The feelings and momentum generated by these two methods are distinctly different." He aims to enhance members’’ sense of achievement and confidence by setting  their own goals, thereby gradually helping them realize their self-worth and achieve corporate objectives.
Eton held several "Town Hall Meetings" to provide EISBG members to express their thoughts openly.

Those who work hard will gain more abilities, enhancing their self-worth through persistent effort
Eton has worked at Delta for thirty years and served in various departments, including the Materials Department, Global Supply Chain Management, and the Information and Communication Technology Infrastructure Business Group, and has undertaken multiple overseas assignments. "My experience in the Materials Department is what I consider the most valuable and fortunate, as it allowed me to engage with a diverse range of products and suppliers. This experience has laid a solid foundation for me in facing different job and role challenges in the future."

At the end of the interview, Eton encouraged everyone by stating, "'Those who work hard will gain more abilities,' which is different from saying that 'those who are capable must work harder.' By thinking from a different perspective, doing a little more can learn more and thus become more capable." He encouraged everyone that all efforts would not be in vain; rather, they would serve as nourishment for growth, paving the way for a broader career path in the future!

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