TTM Technologies: Bridging East and West with Strategic Expansion

Estimated reading time: 5 minutes

As global supply chains shift and demand for supply chain resiliency grows, TTM Technologies is expanding with purpose: bolstering its U.S. presence while maintaining a strong footprint in Asia. With recent moves in Wisconsin and Malaysia, the company is positioning itself to better support customers amid an evolving geopolitical landscape.

In this interview, President and CEO of TTM Technologies (“TTM”) Tom Edman discusses TTM’s expansion strategy, the future of manufacturing, and his planned retirement after his long tenure at the helm of the company.

Marcy LaRont: Tom, congratulations on your Q2 earnings report. TTM has been busy and a lot in the news.

Tom Edman: Thank you. It was a positive earnings report. We are continuing strong growth, about 20% or so year on year. We’re seeing good, strong revenue growth and profitability, all because of our customers.

LaRont: Some weeks ago, you announced the acquisition of a facility in Wisconsin, in addition to the advanced manufacturing facility in Chippewa Falls, and you're acquiring 10 more acres in Penang, Malaysia, where you have a full-volume manufacturing facility. Please talk about your strategy and the wisdom of not focusing on more than three guiding trends in the industry.

Edman: We start with our customers' drive for supply chain resiliency, and we’ve examined the geopolitical situation, our investment plans, and where to make those investments.

The facility we just acquired in Eau Claire, Wisconsin, was a TDK Hutchinson facility that was already set up with all the necessary permitting and infrastructure for printed circuit board production. It was very attractive to get this type of facility rather than a greenfield startup, and that's what drove this.

We believe in positioning ourselves to emphasize time to market, so we were attracted to having this U.S. facility in our hands and the ability to add equipment and ramp capacity fairly quickly.

It’s also an advantage that it’s less than 30 minutes from our facility in Chippewa Falls. We've been using a campus model in order to leverage our technical and operational personnel in areas like Syracuse, New York, Stafford Springs, Connecticut, and our Denver facility. So, being able to pursue a similar model in Wisconsin is also very attractive to us.

LaRont: I imagine after building facilities in Malaysia and Syracuse, the idea of standing up another greenfield site is probably not attractive.

Edman: We are definitely pleased that we already have an existing building in Eau Claire rather than starting with a greenfield site.  This will shorten our time to market with the facility once we have the necessary customer commitments in place.

LaRont: Tom, with the recent push toward onshoring and tariff policies, are you creating the capacity to ramp up to a significant degree if things were to change quite dramatically and significantly in the U.S.?

Edman: Absolutely. This is all about preparing for what may happen. With the right buildings and equipment in place and learning from our experiences in Penang and in China, we are able to navigate an ever-changing geopolitical landscape. Certainly, tariffs are part of that. We'll see what happens with industrial policy with this administration. It's still unclear, but we have a facility that allows us to move quickly, and we're excited about it.

LaRont: With your facility in China, and now expanding into Malaysia, which is China Plus One, you’re working through all your potential eventualities. As a multinational company, do you see a future where China is not still a significant player?

Edman: Many of our customers now are talking about China for China, requirements independent of the rest of their supply chain and their own market strategies. We need to support that.

Our China facilities are outstanding in technology and infrastructure, and continue to lead us in technology and capability. We are also proud of our Guangzhou Technology Center, which serves as our development center for commercial technologies.

What we’re doing in Penang and the U.S. will be about leveraging a global footprint to support our customer base. Right now, our footprint continues to be a bit imbalanced toward China. We need to balance that better by bringing capability into our China Plus One facilities.

LaRont: When it comes to Chinese facilities, we don’t often mention the phenomenal workforce, which is at such a high level. In the U.S., workforce is a concern.

Edman: That’s true, Marcy. I can't say enough about the capabilities of our workforce in China and what they do for TTM. In Penang, we've been bringing in our operators and some of our supervisors from our China facilities to help with the startup because that human factor, the soft factor, is so critical in terms of enabling our manufacturing and optimizing our yields.

LaRont: TTM is the largest fabricator in the United States, with about $2.4 billion in sales in 2024, and in the top six globally. You have a components business as well with RF and space-grade components. Is TTM working to outpace one of the top five global PCB suppliers?

Edman: That's an interesting question, Marcy. For us, it has never been about the size and scale vs. others in terms of PCB capability. It's much more about the technology breadth and making sure that we have the kind of footprint and technologies that meet customer requirements. We won’t pursue growth for the sake of growth. We'll pursue growth in the right areas.

There are a couple of critical differentiators for us. In our defense business, we're much more than a printed circuit board supplier. We supply microelectronics, RF/microwave, and we go deeper in RF in terms of our mission system capability, which ties all the way to the radar and communication systems that we build. We are fairly well vertically integrated in that defense space and are able to offer customers a full set of solutions.

In the commercial space, we have RF components as well as what we do in printed circuit boards (PCBs). They are both a piece of what we do, and clearly, the foundation in terms of technology for what we do. But we won't pursue just growing the revenue to continue to be in the top five or top six or even top 10. It's really about the value that we deliver to the customer.

LaRont: That's good to hear, and your growth strategy is working. In late July, you announced your retirement once a replacement was found, and it was just announced that Dr. Edwin Roks will succeed you as president and CEO. Congratulations!

Edman: Yes, I'm excited about that. I've been talking with the board for several years about my planned retirement around the end of this year. We are excited to have Dr. Roks come on board. He brings a wealth of experience in aerospace, defence, and industrial electronics. I believe the board has chosen well and that he will take TTM Technologies to the next level. Now, it’s my job to empower his success through a transition.

In terms of TTM and our strategy, Edwin will be just the third CEO in our history—Kent Alder, the founder, for whom I took over, then me, and now Edwin Roks. That’s evidence of how important this process is, and how we've been able to ensure continuity of the business strategy and culture. I am confident that Edwin will continue building on both. I am really excited to see that happen.

I will remain on the board of directors at TTM, where I’ve been fortunate enough to serve since 2004. I'm looking forward to remaining involved and doing everything I can to make TTM successful.

LaRont: What are you most looking forward to about retirement?

Edman: These days, there really is no such thing as retirement. First, I'm fully committed to the Global Electronics Association and my role as chair of the Board of Directors until next year. I’m excited about the name change, the global scope of the association, and what John Mitchell and the entire team are doing. I’ll also remain on the board of Ultra Clean Holdings, which is more in the semiconductor equipment market. My board involvement will keep me fresh and energized.

LaRont: There's nothing “retired” about that schedule, but I am glad to hear you will remain involved.

Edman: I'm not going away.

LaRont: Tom, again, congratulations, thank you for sharing some thoughts with me today.

Edman: Thank you, Marcy.