WEBVTT 00:00:00.000 --> 00:00:02.540 Okay, let's get into it. We're doing a deep dive 00:00:02.540 --> 00:00:09.000 today on a company that has quietly built the 00:00:09.000 --> 00:00:12.580 absolute essential physical architecture of the 00:00:12.580 --> 00:00:15.400 modern world. And yet, you've probably never 00:00:15.400 --> 00:00:17.379 heard its name. Not unless you're in a very specific 00:00:17.379 --> 00:00:19.440 field. Yeah, we're talking about the connective 00:00:19.440 --> 00:00:22.379 tissue, the physical links that make everything 00:00:22.379 --> 00:00:25.079 work. Everything from an F -35 fighter jet to, 00:00:25.079 --> 00:00:27.440 you know, the high -speed data centers that run 00:00:27.440 --> 00:00:30.260 the cloud, this is a true hidden giant. It really 00:00:30.260 --> 00:00:31.940 is. We're talking about Amphenol Corporation. 00:00:32.320 --> 00:00:34.359 They're an American company, and they produce 00:00:34.359 --> 00:00:36.460 electronic and fiber optic connectors, cables, 00:00:36.640 --> 00:00:39.520 all those critical interconnect systems. So basically, 00:00:39.579 --> 00:00:41.380 they make the things that plug into other things. 00:00:41.539 --> 00:00:43.179 That's the simplest way to put it, yeah. They 00:00:43.179 --> 00:00:45.700 make sure data, power, and signal flow where 00:00:45.700 --> 00:00:47.840 they're supposed to and do it reliably. If you're 00:00:47.840 --> 00:00:49.899 using any complex electronics, and of course, 00:00:49.899 --> 00:00:52.240 you are depending on an Amphenol product somewhere 00:00:52.240 --> 00:00:54.140 down the line. I love that idea, the sort of 00:00:54.140 --> 00:00:56.509 invisible power. I mean, Amphenol is an S &P 00:00:56.509 --> 00:01:00.049 500 company, ticker APH. They're huge, but they 00:01:00.049 --> 00:01:02.109 hide in plain sight. Everywhere and nowhere. 00:01:02.509 --> 00:01:05.409 Exactly. Before we get into the sheer scale of 00:01:05.409 --> 00:01:08.170 this operation, we have to talk about the name 00:01:08.170 --> 00:01:11.709 Amphenol. It sounds a little bit like a pharmaceutical 00:01:11.709 --> 00:01:14.430 or maybe a chemical. That's a great observation, 00:01:14.530 --> 00:01:16.590 and it's actually a fantastic piece of corporate 00:01:16.590 --> 00:01:19.829 history. The name Amphenol is a portmanteau. 00:01:19.969 --> 00:01:23.079 Okay. It's a mashup of... Words from their original 00:01:23.079 --> 00:01:25.480 name back when they were founded in 1932. Which 00:01:25.480 --> 00:01:28.459 was? American Phenolic Corporation. Ah, okay. 00:01:28.780 --> 00:01:31.980 American Phenolic. Amphenol. I see it now. They 00:01:31.980 --> 00:01:34.299 just sort of compressed it. And it's stuck. It's 00:01:34.299 --> 00:01:36.260 efficient, you know? Just like their products. 00:01:36.540 --> 00:01:39.200 So our mission for this deep dive is to map that 00:01:39.200 --> 00:01:41.700 incredible scale and also understand the historical 00:01:41.700 --> 00:01:44.109 depth. Because that's really what lets them be 00:01:44.109 --> 00:01:46.829 so ubiquitous today. And when we talk about scale 00:01:46.829 --> 00:01:49.650 in 2024, I mean, the numbers are just staggering. 00:01:49.870 --> 00:01:51.370 They really are. We're looking at a company with 00:01:51.370 --> 00:01:54.650 roughly 125 ,000 employees around the world and 00:01:54.650 --> 00:01:58.370 a revenue of U .S. $15 .2 billion. That's not 00:01:58.370 --> 00:02:00.569 just some niche component supplier. That's a 00:02:00.569 --> 00:02:03.569 global colossus. Right. And understanding how 00:02:03.569 --> 00:02:05.569 they got there, that's the real story. It's not 00:02:05.569 --> 00:02:08.789 an accident. It's a story that starts with wartime 00:02:08.789 --> 00:02:12.939 demand, which baked in this. non -negotiable 00:02:12.939 --> 00:02:15.979 standard of absolute reliability. And then it 00:02:15.979 --> 00:02:18.520 was fueled by constant high spec innovation. 00:02:18.860 --> 00:02:21.000 And then, and this is the key to their modern 00:02:21.000 --> 00:02:24.520 form, one of the most aggressive and I'd say 00:02:24.520 --> 00:02:27.659 surgically precise acquisition campaigns in industrial 00:02:27.659 --> 00:02:29.939 history. So they didn't just grow. They were 00:02:29.939 --> 00:02:33.020 built piece by piece by design. Exactly. Targeting 00:02:33.020 --> 00:02:35.520 every single high value connection point in the 00:02:35.520 --> 00:02:37.159 modern economy. Let's start at the beginning 00:02:37.159 --> 00:02:39.490 of the real foundation. almost a century ago, 00:02:39.569 --> 00:02:43.409 Chicago, 1932, an entrepreneur named Arthur J. 00:02:43.509 --> 00:02:45.469 Schmidt. Right in the middle of the Great Depression. 00:02:45.629 --> 00:02:47.469 Which is just incredible. The fact that they 00:02:47.469 --> 00:02:50.169 even survived, let alone thrived, tells you they 00:02:50.169 --> 00:02:52.449 were solving a real immediate problem. They absolutely 00:02:52.449 --> 00:02:54.949 were. And their very first product, it seems 00:02:54.949 --> 00:02:57.229 so simple now, but it was fundamental for that 00:02:57.229 --> 00:03:00.090 era. What was it? A tube socket. Specifically, 00:03:00.129 --> 00:03:02.750 a socket for radio tubes, sometimes called valve 00:03:02.750 --> 00:03:06.389 holder bases. Okay, so in the 1930s, the radio 00:03:06.389 --> 00:03:08.870 was the piece of high -tech consumer electronics. 00:03:09.310 --> 00:03:12.169 It was the internet of its day, the main communication 00:03:12.169 --> 00:03:16.009 device. And Amphenol was providing that essential 00:03:16.009 --> 00:03:19.710 physical interface. Those glass tubes were fragile, 00:03:19.870 --> 00:03:22.330 and you needed a reliable way to plug them in, 00:03:22.389 --> 00:03:24.610 get them power, and let them do their job. They 00:03:24.610 --> 00:03:27.270 basically solved the first mass market electrical 00:03:27.270 --> 00:03:30.270 plug problem. From that one small critical component, 00:03:30.530 --> 00:03:33.889 they then hit the biggest growth catalyst imaginable. 00:03:34.009 --> 00:03:36.409 World War II. Right. It took them from a Chicago 00:03:36.409 --> 00:03:39.770 parts maker to, well, a backbone of the entire 00:03:39.770 --> 00:03:42.110 defense industry. It happened almost overnight. 00:03:42.590 --> 00:03:44.750 And that's what cemented their reputation for 00:03:44.750 --> 00:03:47.770 rugged, bulletproof quality. They expanded massively 00:03:47.770 --> 00:03:49.889 because they became the primary manufacturer 00:03:49.889 --> 00:03:52.469 of connectors for all sorts of military hardware. 00:03:52.710 --> 00:03:54.969 We're talking field radios, radar systems. And 00:03:54.969 --> 00:03:57.530 most critically, airplanes. Think about the conditions 00:03:57.530 --> 00:03:59.669 inside a World War II bomber. The vibration, 00:04:00.009 --> 00:04:02.969 the extreme temperatures, the moisture. A connector 00:04:02.969 --> 00:04:06.330 can't just wiggle loose. Absolutely not. Reliability 00:04:06.330 --> 00:04:08.969 becomes a life or death issue. And that experience 00:04:08.969 --> 00:04:12.449 forged their entire corporate DNA. That's standard 00:04:12.449 --> 00:04:15.550 for durable, reliable connectivity that they 00:04:15.550 --> 00:04:18.569 still live by today. That's a huge leap in complexity, 00:04:18.870 --> 00:04:21.189 isn't it? Going from a little plastic socket 00:04:21.189 --> 00:04:25.110 for a home radio to a sealed mission -critical 00:04:25.110 --> 00:04:27.410 connector for an aircraft. Massive. And that 00:04:27.410 --> 00:04:30.129 heritage is still alive today. We have to talk 00:04:30.129 --> 00:04:32.430 about Amphenol Aerospace. It's their largest 00:04:32.430 --> 00:04:34.990 division located up in Sydney, New York. That 00:04:34.990 --> 00:04:37.050 facility has its own history, right? Yeah. It 00:04:37.050 --> 00:04:38.759 wasn't always Amphenol. That's right. It was 00:04:38.759 --> 00:04:42.180 formerly Bendix Corporation, a legendary name 00:04:42.180 --> 00:04:44.019 in aviation. And that's where a true industry 00:04:44.019 --> 00:04:46.500 gold standard was born. Precisely. The Sydney 00:04:46.500 --> 00:04:51.360 facility is the birthplace of the MDTL38999 cylindrical 00:04:51.360 --> 00:04:53.839 connector. Now, that's a mouthful, but for anyone 00:04:53.839 --> 00:04:56.000 in aerospace or high reliability industries, 00:04:56.339 --> 00:04:59.259 that's a huge deal. It is the standard. The 38999 00:04:59.259 --> 00:05:02.199 is everywhere. It's a circular, sealed, incredibly 00:05:02.199 --> 00:05:04.420 durable connector that can handle almost anything 00:05:04.420 --> 00:05:06.720 you throw at it. Extreme temperatures, vibration, 00:05:07.180 --> 00:05:09.579 EMI. The fact that Amphenol owns that legacy 00:05:09.579 --> 00:05:11.620 tells you everything about where they built their 00:05:11.620 --> 00:05:14.339 reputation. But it's not just these super specialized 00:05:14.339 --> 00:05:16.420 military parts that you'd only find inside a 00:05:16.420 --> 00:05:19.759 jet. They also invented things that people in 00:05:19.759 --> 00:05:21.500 tech or broadcast would have used every day. 00:05:22.439 --> 00:05:24.519 We have to talk about the BNC connector. Oh, 00:05:24.560 --> 00:05:26.319 absolutely. A little twist and lock connector 00:05:26.319 --> 00:05:28.399 for coaxial cable. I'm pretty sure everyone has 00:05:28.399 --> 00:05:30.079 used one of those at some point. If you've worked 00:05:30.079 --> 00:05:33.459 with video or networking gear, definitely. The 00:05:33.459 --> 00:05:35.819 BNC connector is a cornerstone of connectivity, 00:05:36.040 --> 00:05:39.220 and yes, it was an Amphenol innovation. BNC. 00:05:39.360 --> 00:05:42.399 What does that stand for? It stands for Bayonet 00:05:42.399 --> 00:05:45.819 Neal Consulman. The bayonet part is for that 00:05:45.819 --> 00:05:48.839 quarter turn locking mechanism. Okay, so Neal 00:05:48.839 --> 00:05:51.139 Consulman. That's where it gets interesting, 00:05:51.259 --> 00:05:53.199 because the sources say the original prototype 00:05:53.199 --> 00:05:56.639 actually came from Bell Telephone Labs. That's 00:05:56.639 --> 00:05:59.259 the key detail. This is where engineering refinement 00:05:59.259 --> 00:06:02.220 is so important. The concept came from Bell Labs, 00:06:02.379 --> 00:06:05.959 but the finalized commercial product, the BNC 00:06:05.959 --> 00:06:08.259 connector we know, that was Amphenol's innovation. 00:06:08.480 --> 00:06:10.540 They commercialized it. So the name honors both 00:06:10.540 --> 00:06:13.519 parties. Exactly. Paul Neal from Bell Labs and 00:06:13.519 --> 00:06:15.560 Carl Konselman, who was an Amphenol engineer. 00:06:15.860 --> 00:06:18.600 It's a tribute to that collaboration. And there's 00:06:18.600 --> 00:06:20.720 a great little piece of engineering lore about 00:06:20.720 --> 00:06:23.899 its early nickname. Yes. I love this story. It 00:06:23.899 --> 00:06:27.000 was sometimes called Baby Neal Constant. Baby 00:06:27.000 --> 00:06:29.519 Neal constant? Why? Well, the Baby Neal part 00:06:29.519 --> 00:06:31.759 was a nod to Paul Neal, and also because it was 00:06:31.759 --> 00:06:34.839 a smaller version of an older connector. But 00:06:34.839 --> 00:06:37.620 the constant part is the genius of it. They were 00:06:37.620 --> 00:06:40.220 trying to design a connector that maintained 00:06:40.220 --> 00:06:43.660 a constant impedance. Which is critical for signal 00:06:43.660 --> 00:06:46.220 quality. It's everything. If the impedance changes, 00:06:46.579 --> 00:06:48.339 the signal reflects back and gets distorted. 00:06:48.870 --> 00:06:51.689 The BNZ connector solved the problem of high 00:06:51.689 --> 00:06:53.949 -frequency signal transfer in a small, reliable 00:06:53.949 --> 00:06:57.470 package. It set the standard for decades. So 00:06:57.470 --> 00:06:59.029 they didn't just invent a part. They invented 00:06:59.029 --> 00:07:01.269 a standard for signal integrity. Yeah. It's a 00:07:01.269 --> 00:07:03.810 huge legacy, especially now with 5G and high 00:07:03.810 --> 00:07:05.990 -def video. Correct. And that inventive spirit 00:07:05.990 --> 00:07:08.310 didn't stop there. The micro -ribbon connector, 00:07:08.550 --> 00:07:10.670 which was a staple in early computers, that was 00:07:10.670 --> 00:07:13.310 also an Amphenol invention. It's a pattern. They 00:07:13.310 --> 00:07:15.370 see a physical connection problem, and they solve 00:07:15.370 --> 00:07:17.350 it before the rest of the industry even realizes 00:07:17.350 --> 00:07:20.129 it's going to be a bottleneck. Hashtag tag three, 00:07:20.290 --> 00:07:22.230 the modern corporate structure and financial 00:07:22.230 --> 00:07:25.370 scale. OK, so let's take that foundation, this 00:07:25.370 --> 00:07:28.829 1932 Chicago startup that mastered the lead from 00:07:28.829 --> 00:07:32.649 radio tubes to military hardware and look at 00:07:32.649 --> 00:07:35.149 where it is now. The transformation into a global 00:07:35.149 --> 00:07:38.810 corporation is just it's mind boggling. Staggering 00:07:38.810 --> 00:07:40.949 is the right word. Yeah. The headquarters are 00:07:40.949 --> 00:07:42.949 now in Wallingford, Connecticut, but that's just 00:07:42.949 --> 00:07:45.379 a pin on the map. That original Chicago operation 00:07:45.379 --> 00:07:48.639 has basically spread across the entire globe. 00:07:48.680 --> 00:07:51.120 They have operations in more than 60 locations 00:07:51.120 --> 00:07:53.540 worldwide. And this isn't random. It's strategic. 00:07:54.089 --> 00:07:56.129 They position themselves right next to their 00:07:56.129 --> 00:07:58.269 major customers, the big manufacturing hubs. 00:07:58.410 --> 00:08:01.029 So they can be a local supplier to global giants 00:08:01.029 --> 00:08:05.009 like a Boeing or a Cisco or a BMW. And that global 00:08:05.009 --> 00:08:07.649 footprint supports the financial numbers we see 00:08:07.649 --> 00:08:10.110 in 2024. Let's just lay out the scale here because 00:08:10.110 --> 00:08:12.610 it really defines their dominance. We mentioned 00:08:12.610 --> 00:08:15.009 the $15 .2 billion in revenue. Which is a huge 00:08:15.009 --> 00:08:17.269 top line number. But the profitability is what 00:08:17.269 --> 00:08:20.050 really shows you how well run this complex machine 00:08:20.050 --> 00:08:23.000 is. Right. For 2024, their operating income was 00:08:23.000 --> 00:08:27.899 US $3 .16 billion, net income US $2 .42 billion. 00:08:29.019 --> 00:08:31.879 When you manage a global supply chain this complex 00:08:31.879 --> 00:08:34.279 with all these different parts, pulling down 00:08:34.279 --> 00:08:36.580 that kind of margin is just exceptional. The 00:08:36.580 --> 00:08:38.679 balance sheet reflects that stability. Total 00:08:38.679 --> 00:08:42.360 assets around $21 .4 billion. Total equity at 00:08:42.360 --> 00:08:46.220 $9 .79 billion. They're a financial fortress. 00:08:46.500 --> 00:08:48.860 A fortress built on tiny, reliable, critical 00:08:48.860 --> 00:08:53.220 parts. And the workforce. 125 ,000 people. That 00:08:53.220 --> 00:08:55.200 number alone tells you the complexity of the 00:08:55.200 --> 00:08:57.419 manufacturing and engineering involved. But the 00:08:57.419 --> 00:08:59.759 real secret to their strength, their resilience, 00:08:59.840 --> 00:09:02.159 isn't just the size. It's their market diversity. 00:09:02.539 --> 00:09:04.519 It's radical. They've deliberately engineered 00:09:04.519 --> 00:09:06.500 the business so they're not reliant on any one 00:09:06.500 --> 00:09:08.519 industry. Exactly. They aren't going to get wiped 00:09:08.519 --> 00:09:11.440 out if one tech bubble bursts. They sell their 00:09:11.440 --> 00:09:14.080 products into this incredibly vast range of markets, 00:09:14.139 --> 00:09:16.399 which balances the risk perfectly. Let's run 00:09:16.399 --> 00:09:17.759 through that list because it really connects 00:09:17.759 --> 00:09:20.000 to your everyday life. We start with the obvious 00:09:20.000 --> 00:09:22.830 one, military. Terry Aerospace. And heavy industry. 00:09:23.049 --> 00:09:25.570 Then you get into the modern stuff. Industrial 00:09:25.570 --> 00:09:29.610 automation, automotive. And the big one, information 00:09:29.610 --> 00:09:32.850 technology. Data centers, servers, storage arrays. 00:09:32.990 --> 00:09:35.210 The absolute foundation of the cloud is held 00:09:35.210 --> 00:09:37.090 together by their products. And it goes even 00:09:37.090 --> 00:09:39.809 further. They're deep inside consumer devices. 00:09:40.190 --> 00:09:42.470 The tiny little connectors inside your mobile 00:09:42.470 --> 00:09:44.549 phone. Right. And the wireless infrastructure 00:09:44.549 --> 00:09:47.549 that makes your phone work. Broadband, which 00:09:47.549 --> 00:09:49.509 is the backbone of your internet connection at 00:09:49.509 --> 00:09:51.840 home. And then you have the really high margin, 00:09:51.960 --> 00:09:54.879 highly regulated fields, medical equipment. Like 00:09:54.879 --> 00:09:58.139 MRI machines. And professional audio. The high 00:09:58.139 --> 00:10:00.399 reliability cables used in a recording studio 00:10:00.399 --> 00:10:03.179 or for a live broadcast. Every single one of 00:10:03.179 --> 00:10:05.799 those sectors has unique, demanding requirements. 00:10:05.960 --> 00:10:08.539 And Amphenol is selling into all of them. So 00:10:08.539 --> 00:10:11.820 that complete coverage means if, say, the smartphone 00:10:11.820 --> 00:10:14.799 market has a slow year. The massive investment 00:10:14.799 --> 00:10:16.860 in data centers or the steady demand from the 00:10:16.860 --> 00:10:19.000 medical sector picks up the slack. They're basically 00:10:19.000 --> 00:10:21.679 selling the shovels to every single digital gold 00:10:21.679 --> 00:10:24.600 rush all at the same time. It makes them incredibly 00:10:24.600 --> 00:10:28.320 robust. Hashtag tag IV. Niche specialties and 00:10:28.320 --> 00:10:31.179 market agility. And that resilience comes from 00:10:31.179 --> 00:10:33.559 intense specialization. It's not just general 00:10:33.559 --> 00:10:36.059 manufacturing. They go deep into very specific 00:10:36.059 --> 00:10:38.940 niches, often by buying the best company in that 00:10:38.940 --> 00:10:41.759 niche. This lets them pivot really quickly to 00:10:41.759 --> 00:10:43.679 where the most complex, highest margin problems 00:10:43.679 --> 00:10:46.679 are. Let's look at an example, their focus on 00:10:46.679 --> 00:10:50.039 fiber optics. A perfect one. This brings us to 00:10:50.039 --> 00:10:53.320 Amphenol Fiber Systems International, or AFSI. 00:10:53.899 --> 00:10:55.759 And they got into this pretty early, right? Back 00:10:55.759 --> 00:10:58.700 in 1993. They did, just as fiber was becoming 00:10:58.700 --> 00:11:00.980 the clear winner for high -speed data transmission. 00:11:01.799 --> 00:11:05.320 AFSI focuses specifically on fiber optic connectivity. 00:11:05.779 --> 00:11:07.980 So not the glass fiber itself, but the things 00:11:07.980 --> 00:11:10.019 that connect it. Exactly. The ultra -precise 00:11:10.019 --> 00:11:11.820 components that connect light -based signals. 00:11:12.019 --> 00:11:14.159 They are managing the physical transition from 00:11:14.159 --> 00:11:16.799 copper electrons to light photons. And that is 00:11:16.799 --> 00:11:19.200 arguably the most critical shift in modern communications. 00:11:19.700 --> 00:11:21.759 And they're doing this work from a pretty strategic 00:11:21.759 --> 00:11:24.700 location. Very. Their main facility is in Allen, 00:11:24.840 --> 00:11:28.059 Texas. It's a 94 ,000 square foot plant with 00:11:28.059 --> 00:11:31.440 over 250 people. And Allen is right in the heart 00:11:31.440 --> 00:11:34.019 of the telecom corridor in the Dallas area. Right. 00:11:34.120 --> 00:11:36.919 They are physically located next to the biggest 00:11:36.919 --> 00:11:39.360 telecom and data center companies in the world. 00:11:39.559 --> 00:11:41.919 It keeps them embedded in the heart of that whole 00:11:41.919 --> 00:11:44.580 ecosystem. So that's the high spec business to 00:11:44.580 --> 00:11:47.200 business specialization. But then they did something 00:11:47.200 --> 00:11:50.309 that seems almost counterintuitive. They got 00:11:50.309 --> 00:11:52.490 into the direct to consumer space. It does seem 00:11:52.490 --> 00:11:54.789 contradictory to their aerospace DNA, doesn't 00:11:54.789 --> 00:11:57.750 it? But it's a brilliant move. That's their cables 00:11:57.750 --> 00:12:01.100 on demand division. Launched in 2006. Yeah. And 00:12:01.100 --> 00:12:03.340 it's a completely different business model. Instead 00:12:03.340 --> 00:12:06.019 of custom designing a backplane for a multi -million 00:12:06.019 --> 00:12:09.320 dollar military system, they specialize in distributing 00:12:09.320 --> 00:12:12.220 standard off -the -shelf cable assemblies. Like 00:12:12.220 --> 00:12:15.720 HDMI cables, USB, network patch cords. The stuff 00:12:15.720 --> 00:12:18.480 you'd buy for your home or office. But they can 00:12:18.480 --> 00:12:21.019 leverage their immense manufacturing scale and 00:12:21.019 --> 00:12:23.240 quality control to compete. It's a great way 00:12:23.240 --> 00:12:25.100 to capture a different part of the market. It 00:12:25.100 --> 00:12:28.399 is. They sell over 2500 different types of these 00:12:28.399 --> 00:12:30.519 standard cables through an e -commerce storefront, 00:12:30.659 --> 00:12:32.940 and they've scaled it globally with operations 00:12:32.940 --> 00:12:35.460 in New York, California, Florida, Toronto and 00:12:35.460 --> 00:12:38.379 China. It shows they can dominate both ends of 00:12:38.379 --> 00:12:41.549 the market. The custom, high -margin, low -volume 00:12:41.549 --> 00:12:44.309 work and the standardized, high -volume, lower 00:12:44.309 --> 00:12:47.269 -margin business. Now, you mentioned the company's 00:12:47.269 --> 00:12:49.590 structure. It's important to point out it wasn't 00:12:49.590 --> 00:12:51.690 always this straightforward, focused path. There 00:12:51.690 --> 00:12:53.470 was a period of, let's say, structural change. 00:12:53.750 --> 00:12:55.610 That's a crucial piece of history, yeah. From 00:12:55.610 --> 00:12:58.850 1967 to 1982, Amphenol was actually part of a 00:12:58.850 --> 00:13:01.250 larger conglomerate called Bunker Remo Corporation. 00:13:01.850 --> 00:13:03.710 And what does that mean for a company like this? 00:13:04.220 --> 00:13:06.299 Well, when you're part of a big, diverse corporation, 00:13:06.720 --> 00:13:09.360 there's always a risk you lose focus. Innovation 00:13:09.360 --> 00:13:12.399 can slow down. Priorities get shifted. That 15 00:13:12.399 --> 00:13:14.740 -year period shows that the disciplined, aggressive 00:13:14.740 --> 00:13:17.259 growth we see today wasn't a given. They had 00:13:17.259 --> 00:13:19.559 to be spun out and regain their independence 00:13:19.559 --> 00:13:22.899 to really start on the M &A strategy that defines 00:13:22.899 --> 00:13:25.299 them now. So that period of being part of something 00:13:25.299 --> 00:13:27.379 bigger might have actually shown them the value 00:13:27.379 --> 00:13:29.440 of being focused? I think that's a very good 00:13:29.440 --> 00:13:31.879 way to look at it. It proved that their core 00:13:31.879 --> 00:13:34.059 strength was in connectivity and they needed 00:13:34.059 --> 00:13:36.820 to own that space completely. OK, so this brings 00:13:36.820 --> 00:13:40.120 us to the real engine of their modern success. 00:13:40.659 --> 00:13:43.259 Amphenol's journey from a component supplier 00:13:43.259 --> 00:13:47.480 to this global interconnect ecosystem. It's all 00:13:47.480 --> 00:13:49.649 written in their acquisition history. Absolutely. 00:13:49.850 --> 00:13:52.330 And it wasn't just random buying. It was a discipline, 00:13:52.549 --> 00:13:55.649 decades long strategy. They were filling every 00:13:55.649 --> 00:13:58.470 critical high value niche in the connectivity 00:13:58.470 --> 00:14:00.789 world. It was surgical. They weren't just buying 00:14:00.789 --> 00:14:02.850 revenue. They were buying expertise. They were 00:14:02.850 --> 00:14:04.769 buying intellectual property and they were buying 00:14:04.769 --> 00:14:07.649 immediate access to specialized markets all over 00:14:07.649 --> 00:14:10.090 the globe. They see a gap or a future growth 00:14:10.090 --> 00:14:12.169 market and they just go out and buy the best 00:14:12.169 --> 00:14:14.190 company that solves that physical connection 00:14:14.190 --> 00:14:16.669 problem. But let me jump in here with a question. 00:14:17.120 --> 00:14:19.399 Because that sounds great on paper. But buying 00:14:19.399 --> 00:14:22.259 dozens of companies, they all have different 00:14:22.259 --> 00:14:24.100 cultures, different manufacturing processes. 00:14:24.360 --> 00:14:27.480 That has to create a huge integration risk. How 00:14:27.480 --> 00:14:30.039 do they pull it off without fumbling? That is 00:14:30.039 --> 00:14:32.320 the multi -billion dollar question. And it's 00:14:32.320 --> 00:14:36.120 a great point. The answer is their core operational 00:14:36.120 --> 00:14:39.200 philosophy. It's highly decentralized. So they 00:14:39.200 --> 00:14:41.559 don't just absorb them and turn them into Amphenol. 00:14:41.659 --> 00:14:44.529 Not at all. Historically, they let the acquired 00:14:44.529 --> 00:14:47.629 companies operate with a lot of autonomy. They 00:14:47.629 --> 00:14:49.909 focus the integration on things like financial 00:14:49.909 --> 00:14:52.309 reporting and leveraging Amphenol's global scale 00:14:52.309 --> 00:14:54.889 for buying materials, but they don't force a 00:14:54.889 --> 00:14:57.490 massive cultural change. They buy the tech and 00:14:57.490 --> 00:14:59.610 the management team, and then they let them run. 00:14:59.809 --> 00:15:02.009 That's fascinating. So it's more like a federation 00:15:02.009 --> 00:15:04.870 of specialized units under one financial umbrella. 00:15:05.129 --> 00:15:07.409 Exactly. It minimizes the friction and lets them 00:15:07.409 --> 00:15:09.210 keep acquiring. Okay, so let's walk through this 00:15:09.210 --> 00:15:11.370 timeline. It really kicks into high gear around 00:15:11.370 --> 00:15:14.909 1986. Hashtag, hashtag, VA early specialization 00:15:14.909 --> 00:15:18.690 and high density interconnects. 1986, 2005. The 00:15:18.690 --> 00:15:21.389 first major international move our sources highlight 00:15:21.389 --> 00:15:24.529 is in 1986 with the acquisition of Socapex, a 00:15:24.529 --> 00:15:26.629 French manufacturer. And this immediately gives 00:15:26.629 --> 00:15:29.029 them a strong foothold in Europe. Right. And 00:15:29.029 --> 00:15:31.649 it wasn't just a geographic move. Socapex brought 00:15:31.649 --> 00:15:34.450 deep expertise in connectors for very heavy duty 00:15:34.450 --> 00:15:37.029 applications outside of the U .S. military spec 00:15:37.029 --> 00:15:39.669 world. Things like European defense, high speed 00:15:39.669 --> 00:15:42.669 rail, the energy sector, even the entertainment 00:15:42.669 --> 00:15:44.889 industry. So it was an instant diversification 00:15:44.889 --> 00:15:47.009 of both geography and expertise. It laid the 00:15:47.009 --> 00:15:49.789 groundwork. Then in the mid 2000s, they really 00:15:49.789 --> 00:15:52.250 doubled down on high speed and high density stuff. 00:15:52.570 --> 00:15:56.059 2005 was a huge year. Two big acquisitions. First 00:15:56.059 --> 00:15:59.340 was SV Microwave. This was a dedicated push into 00:15:59.340 --> 00:16:02.200 high frequency performance. They make precision 00:16:02.200 --> 00:16:05.159 RF or radio frequency connectors and components. 00:16:05.360 --> 00:16:07.759 And why is RF so critical? Anything wireless, 00:16:07.919 --> 00:16:10.320 GPS, advanced radar, satellite communications. 00:16:10.740 --> 00:16:13.440 In those systems, the quality of the RF connector 00:16:13.440 --> 00:16:15.980 is everything. It's a tiny part. But if it fails, 00:16:16.059 --> 00:16:18.639 the whole system is blind. SV Microwave moved 00:16:18.639 --> 00:16:20.720 them up the value chain into these extremely 00:16:20.720 --> 00:16:23.019 precise high margin components. And the second 00:16:23.019 --> 00:16:25.139 big move in 2000. 2005 was Teradyne Connection 00:16:25.139 --> 00:16:28.539 Systems, or TCS. A huge deal, about $390 million 00:16:28.539 --> 00:16:31.480 in cash. And this was a brilliant strategic fit. 00:16:31.700 --> 00:16:34.320 How so? TCS specialized in high density connectors 00:16:34.320 --> 00:16:37.200 and complete backplanes. The backplane is like 00:16:37.200 --> 00:16:39.240 the motherboard for a giant server, right? The 00:16:39.240 --> 00:16:40.980 central nervous system. That's a perfect analogy. 00:16:41.259 --> 00:16:43.700 So with the TCS acquisition, Amphenol wasn't 00:16:43.700 --> 00:16:46.259 just selling the individual wires anymore. They 00:16:46.259 --> 00:16:48.480 were now selling the entire high density architecture 00:16:48.480 --> 00:16:51.039 that everything plugs into. They gained control 00:16:51.039 --> 00:17:01.769 over the entire internal Right. Moving into the 00:17:01.769 --> 00:17:05.150 late 2000s and early 2010s, the strategy seems 00:17:05.150 --> 00:17:07.750 to shift. They start aggressively moving into 00:17:07.750 --> 00:17:10.190 wireless and advanced sensors. This looks like 00:17:10.190 --> 00:17:12.250 a direct play on the smartphone boom. It absolutely 00:17:12.250 --> 00:17:14.470 was. You see it in 2008 with the acquisition 00:17:14.470 --> 00:17:16.890 of Cephi, another French electronics company, 00:17:17.089 --> 00:17:20.049 and then Jbeam Wireless in 2009. Jbeam became 00:17:20.049 --> 00:17:22.430 Amphenol Antenna Solutions. Right. Right. This 00:17:22.430 --> 00:17:24.609 was their big push into the guts of wireless 00:17:24.609 --> 00:17:26.490 infrastructure. They were selling the physical 00:17:26.490 --> 00:17:29.269 hardware that makes mobile data and the new 4G 00:17:29.269 --> 00:17:31.410 networks actually function. But the really interesting 00:17:31.410 --> 00:17:33.650 pivot here is the move into sensing technology. 00:17:34.250 --> 00:17:36.869 That's a step beyond just connectivity. A huge 00:17:36.869 --> 00:17:39.769 step. In 2013, they bought the advanced sensors 00:17:39.769 --> 00:17:43.769 business from GE. For over $300 million. Right. 00:17:43.849 --> 00:17:46.490 And this fundamentally changed their value proposition. 00:17:47.190 --> 00:17:49.730 Sensors are the eyes and ears of any automated 00:17:49.730 --> 00:17:52.829 system. By adding sensors, Amphenol went from 00:17:52.829 --> 00:17:54.970 just connecting the components to providing the 00:17:54.970 --> 00:17:56.789 component that gathers the data in the first 00:17:56.789 --> 00:17:59.170 place. So they're not just the nervous system 00:17:59.170 --> 00:18:01.230 anymore. They're the nerve endings, too. That's 00:18:01.230 --> 00:18:03.369 it. Exactly. They're selling the input device. 00:18:03.529 --> 00:18:06.109 and the physical pathway for the data from that 00:18:06.109 --> 00:18:08.569 device. It makes them incredibly sticky as a 00:18:08.569 --> 00:18:12.420 supplier. And that same year... 2013, they moved 00:18:12.420 --> 00:18:15.240 deeper into the automotive world with TechVox 00:18:15.240 --> 00:18:17.940 OEM solutions. And this one is something you've 00:18:17.940 --> 00:18:20.359 probably interacted with directly. TechVox was 00:18:20.359 --> 00:18:23.079 a leader in automotive USB connectivity. Based 00:18:23.079 --> 00:18:24.900 in Huntsville, Alabama. Yeah. And they were the 00:18:24.900 --> 00:18:28.059 first automotive company to release the OEM USB 00:18:28.059 --> 00:18:31.059 -based media hub and charger. So when I plug 00:18:31.059 --> 00:18:33.559 my phone into my car for Apple CarPlay, or just 00:18:33.559 --> 00:18:36.140 to charge it. That reliable connection, that 00:18:36.140 --> 00:18:38.619 seamless data and power transfer, that's what 00:18:38.619 --> 00:18:41.799 TechFox pioneered. Amphenol bought the company 00:18:41.799 --> 00:18:43.859 that owned that critical piece of digital real 00:18:43.859 --> 00:18:46.000 estate right on your dashboard. They secured 00:18:46.000 --> 00:18:49.180 their spot in the digitizing car. Hashtag tag 00:18:49.180 --> 00:18:51.759 tag VC industrial sensing and aviation cabin 00:18:51.759 --> 00:18:55.180 technology. 2016, 2017. Okay, fast forward to 00:18:55.180 --> 00:18:58.160 the mid -2010s. The focus gets even more refined 00:18:58.160 --> 00:19:00.319 here. They're making these incredibly specific, 00:19:00.539 --> 00:19:03.500 almost niche acquisitions. It's all about finding 00:19:03.500 --> 00:19:06.119 these tiny, high -margin markets they can dominate. 00:19:06.400 --> 00:19:10.259 In January 2016, they bought FCI Asia. Which 00:19:10.259 --> 00:19:12.220 was a big move to strengthen their position in 00:19:12.220 --> 00:19:14.700 the Asian telecom and datacom markets, a key 00:19:14.700 --> 00:19:17.339 geographical play. Exactly. Then, later that 00:19:17.339 --> 00:19:20.259 year, they acquired a French company called AUXEL. 00:19:20.779 --> 00:19:22.799 This brought in a totally new expertise for them, 00:19:22.920 --> 00:19:25.099 high power management. What does it mean exactly? 00:19:25.460 --> 00:19:28.559 AUXEL makes power bus bars and power interconnects. 00:19:28.559 --> 00:19:31.380 A bus bar is basically a heavy -duty metal strip 00:19:31.380 --> 00:19:33.380 that conducts huge amounts of electricity more 00:19:33.380 --> 00:19:35.380 efficiently than a simple wire. So for things 00:19:35.380 --> 00:19:37.980 like big industrial machines. Or, more importantly 00:19:37.980 --> 00:19:40.599 today, for power distribution inside a massive 00:19:40.599 --> 00:19:43.440 data center. This acquisition meant Amphenol 00:19:43.440 --> 00:19:45.579 controlled not just the low -voltage data path, 00:19:45.799 --> 00:19:49.220 but the high -current power path too. Total physical 00:19:49.220 --> 00:19:52.039 control. Then we get to what might be the most 00:19:52.039 --> 00:19:54.400 fascinatingly specific acquisition on the whole 00:19:54.400 --> 00:19:59.029 list. Fitech LTD from New Zealand. in 2017. I 00:19:59.029 --> 00:20:01.990 love this one. It's so specific. Fitech was the 00:20:01.990 --> 00:20:04.210 world's leading supplier of electronic noise 00:20:04.210 --> 00:20:06.630 cancellation and audio devices in the aircraft 00:20:06.630 --> 00:20:09.329 cabin. So not for the military avionics, but 00:20:09.329 --> 00:20:11.009 for the passengers. For the passenger experience. 00:20:11.430 --> 00:20:13.789 Those noise canceling headphones embedded in 00:20:13.789 --> 00:20:15.869 your business class seat, the touchscreen interfaces, 00:20:16.269 --> 00:20:19.150 that's Fitech's world. It's a very specialized, 00:20:19.410 --> 00:20:21.750 high margin vertical. And with one acquisition, 00:20:21.990 --> 00:20:23.829 Amphenol becomes the global leader overnight. 00:20:24.519 --> 00:20:26.420 That's an amazing level of precision. And the 00:20:26.420 --> 00:20:28.500 sensor push continued that year, too. It did. 00:20:28.680 --> 00:20:31.480 In June 2017, they bought three industrial sensing 00:20:31.480 --> 00:20:34.940 businesses from Megit PLC. Wilcoxon Research 00:20:34.940 --> 00:20:37.519 and Piezo Technologies in the U .S. and Pure 00:20:37.519 --> 00:20:40.220 Sensors and Controls in Spain. It was a concerted 00:20:40.220 --> 00:20:42.579 effort to build out a complete sensor portfolio. 00:20:43.980 --> 00:20:46.619 Wilcoxon, for instance, is a top name in vibration 00:20:46.619 --> 00:20:49.359 sensors, which are critical for monitoring the 00:20:49.359 --> 00:20:52.059 health of big industrial machinery. This was 00:20:52.059 --> 00:20:54.380 their big play to become indispensable for the 00:20:54.380 --> 00:20:57.890 Industrial Internet of Things, or IIoT. So if 00:20:57.890 --> 00:21:00.849 the 2013 GE deal was the appetizer for sensors, 00:21:01.109 --> 00:21:04.250 this Megit deal was the main course. A perfect 00:21:04.250 --> 00:21:06.670 way to put it. Yes. Hashtag, hashtag VD. The 00:21:06.670 --> 00:21:09.670 massive infrastructure and beta pivot 2020, 2020. 00:21:09.930 --> 00:21:12.349 Now we get to the 2020s and the scale of these 00:21:12.349 --> 00:21:15.450 deals just, it explodes. The whole strategy shifts 00:21:15.450 --> 00:21:17.369 into another gear. They start making billion 00:21:17.369 --> 00:21:19.829 dollar bets on controlling the foundational layer 00:21:19.829 --> 00:21:22.470 of the global data and AI revolution. It starts 00:21:22.470 --> 00:21:25.049 in 2020 with another sensor company, Exothermometrics 00:21:25.049 --> 00:21:26.789 in India. Right. A niche play. They make very. 00:21:26.890 --> 00:21:28.890 Very precise temperature sensors. But then, as 00:21:28.890 --> 00:21:31.130 you said, the scale just went vertical. December 00:21:31.130 --> 00:21:33.670 2020, they announced the deal to acquire MTS 00:21:33.670 --> 00:21:36.730 Systems Corporation. It closes in April 2021 00:21:36.730 --> 00:21:41.390 for $1 .7 billion. This is a huge deal. A massive 00:21:41.390 --> 00:21:43.789 deal. And what's so clever about this one is 00:21:43.789 --> 00:21:45.930 that MTS specializes in test and measurement 00:21:45.930 --> 00:21:48.750 equipment. They make the machines that test the 00:21:48.750 --> 00:21:51.170 physical endurance of other components. Including 00:21:51.170 --> 00:21:54.150 connectors and cables. Exactly. So Amphenol wasn't 00:21:54.150 --> 00:21:56.430 just selling the reliable part anymore. They 00:21:56.430 --> 00:21:58.170 were now selling the high -precision machine 00:21:58.170 --> 00:22:01.829 used to certify that the part is reliable. It's 00:22:01.829 --> 00:22:04.410 a brilliant way to capture value across the entire 00:22:04.410 --> 00:22:06.789 engineering lifecycle. They become an absolute 00:22:06.789 --> 00:22:09.170 linchpin. They're selling the architecture and 00:22:09.170 --> 00:22:11.130 the tools to validate the architecture. Then, 00:22:11.130 --> 00:22:15.140 in December 2021, Halo technology for about $715 00:22:15.140 --> 00:22:19.240 million. Halo is deep in optical networking components. 00:22:19.619 --> 00:22:23.099 The message was crystal clear. High -speed data 00:22:23.099 --> 00:22:25.319 is the future, and we're going to own the physical 00:22:25.319 --> 00:22:27.940 layer. And then we hit the monster deals of 2024 00:22:27.940 --> 00:22:32.480 and 2025. In May 2024, the acquisition of Carlyle 00:22:32.480 --> 00:22:35.259 Interconnect technology for $2 billion. Right, 00:22:35.339 --> 00:22:37.640 which doubled down on their leadership in high 00:22:37.640 --> 00:22:39.660 -performance interconnects for extreme environments, 00:22:39.980 --> 00:22:42.519 consolidating their core strength. But the real 00:22:42.519 --> 00:22:45.220 jaw droppers are the CommScope deals. The sheer 00:22:45.220 --> 00:22:48.319 scale here is just unprecedented for them. It's 00:22:48.319 --> 00:22:51.180 a complete paradigm shift. A total investment 00:22:51.180 --> 00:22:55.200 of over $12 .6 billion to buy up massive existing 00:22:55.200 --> 00:22:58.500 infrastructure assets. It starts in July 2024. 00:22:59.019 --> 00:23:01.480 They announced they're buying CommScope's outdoor 00:23:01.480 --> 00:23:03.940 wireless networks and distributed antenna systems 00:23:03.940 --> 00:23:07.920 businesses. For $2 .1 billion in cash. And this 00:23:07.920 --> 00:23:10.299 wasn't just about hardware. They made a point 00:23:10.299 --> 00:23:12.660 of highlighting the return of the legendary Enderoo 00:23:12.660 --> 00:23:15.660 brand name. Enderoo is a huge name in telecom 00:23:15.660 --> 00:23:18.400 infrastructure. Synonymous with quality. Owning 00:23:18.400 --> 00:23:20.660 that brand gives them immense credibility and 00:23:20.660 --> 00:23:23.779 market share in the global 5G build -out instantly. 00:23:24.079 --> 00:23:27.180 And then, the final massive move in this whole 00:23:27.180 --> 00:23:31.539 story, August 2025, the agreement to buy CommScope's 00:23:31.539 --> 00:23:34.339 core connectivity and cable business unit. For 00:23:34.339 --> 00:23:38.039 a stunning $10 .5 billion. Wow. If the first 00:23:38.039 --> 00:23:40.460 deal was a strategic chunk of the wireless market, 00:23:40.619 --> 00:23:42.819 this one is about absorbing a massive percentage 00:23:42.819 --> 00:23:45.380 of the entire global physical connectivity market. 00:23:45.640 --> 00:23:47.759 This is their move to become the undisputed leader 00:23:47.759 --> 00:23:50.200 in the physical layer that wires the entire world. 00:23:50.400 --> 00:23:52.920 It's an industry restructuring, basically. They 00:23:52.920 --> 00:23:54.579 went from buying niche tech for a few hundred 00:23:54.579 --> 00:23:56.319 million to buying foundational infrastructure 00:23:56.319 --> 00:23:59.119 for billions. And that transition is the whole 00:23:59.119 --> 00:24:01.579 story of their modern identity. They're no longer 00:24:01.579 --> 00:24:04.359 just a component company. They are a critical 00:24:04.359 --> 00:24:08.119 global infrastructure provider. Hashtag tag CFEI. 00:24:09.019 --> 00:24:11.859 Conclusion and the big picture. So when you zoom 00:24:11.859 --> 00:24:14.240 out and look at the whole journey, it's just 00:24:14.240 --> 00:24:17.099 incredible. It starts in 1932. Arthur Schmidt 00:24:17.099 --> 00:24:19.720 selling 50 cent tube sockets in Chicago during 00:24:19.720 --> 00:24:22.769 the Depression. And that company, American Phenolic 00:24:22.769 --> 00:24:26.390 Core, becomes this $15 billion global powerhouse. 00:24:26.589 --> 00:24:28.990 And the engine for that was this relentless, 00:24:29.349 --> 00:24:32.250 four -decade -long strategy of acquiring the 00:24:32.250 --> 00:24:34.930 best -in -class technology for every niche. Fiber 00:24:34.930 --> 00:24:38.150 optics with AFSI, industrial sensing with... 00:24:38.329 --> 00:24:41.190 GE and Megit, even passenger experience with 00:24:41.190 --> 00:24:43.269 Phytek. And then culminating in just absorbing 00:24:43.269 --> 00:24:45.730 huge chunks of telecom infrastructure with the 00:24:45.730 --> 00:24:47.509 CommScope deals. So let's bring it back to the 00:24:47.509 --> 00:24:49.589 listener. Why should you care about this one 00:24:49.589 --> 00:24:51.809 specific company whose products you never actually 00:24:51.809 --> 00:24:54.349 see? You should care because understanding Amphenol 00:24:54.349 --> 00:24:56.309 is understanding the fundamental physics that 00:24:56.309 --> 00:24:58.349 makes our digital world possible. It's the physical 00:24:58.349 --> 00:25:01.279 layer. It's the physical layer. Every time you 00:25:01.279 --> 00:25:04.480 stream a 4K video over 5G, every time a self 00:25:04.480 --> 00:25:07.099 -driving car's sensors make a decision, every 00:25:07.099 --> 00:25:09.660 time a bank's data center processes a transaction, 00:25:10.319 --> 00:25:13.220 Amphenol's connectors or cables or sensors are 00:25:13.220 --> 00:25:15.859 that point of reliable transfer. They are literally 00:25:15.859 --> 00:25:17.960 everywhere you look, if you know where to look. 00:25:18.099 --> 00:25:20.099 They touch every piece of technology you rely 00:25:20.099 --> 00:25:22.720 on, from the network your phone connects to to 00:25:22.720 --> 00:25:24.819 the server rack that holds your data in the cloud. 00:25:25.079 --> 00:25:27.740 They are the essential unseen foundation that 00:25:27.740 --> 00:25:30.049 trillion... industries are built on top of. The 00:25:30.049 --> 00:25:32.890 quiet masters of the electrons and photons that 00:25:32.890 --> 00:25:35.849 run our world. They prove that even in a digital 00:25:35.849 --> 00:25:38.950 age, the physical link is still king. And that 00:25:38.950 --> 00:25:40.930 brings us to the final thought here, the really 00:25:40.930 --> 00:25:43.430 provocative idea. Look at the timing of those 00:25:43.430 --> 00:25:46.730 massive CommScope acquisitions. $12 .6 billion 00:25:46.730 --> 00:25:50.670 in 2024 and 2025. Right as the AI boom is going 00:25:50.670 --> 00:25:53.329 vertical. Exactly. Right as the global demand 00:25:53.329 --> 00:25:56.190 for AI training infrastructure, hyperscale data 00:25:56.190 --> 00:25:58.529 centers and high speed broadband is absolutely 00:25:58.529 --> 00:26:01.470 peaking. Those systems require millions upon 00:26:01.470 --> 00:26:04.109 millions of new high performance physical connections. 00:26:04.509 --> 00:26:07.430 So this wasn't just buying scale. It was buying 00:26:07.430 --> 00:26:10.440 scale. at the perfect moment. By absorbing these 00:26:10.440 --> 00:26:13.240 assets at this precise time, Amphenol has positioned 00:26:13.240 --> 00:26:16.039 itself to be the quiet gatekeeper. They control 00:26:16.039 --> 00:26:18.160 the physical connection points for the entire 00:26:18.160 --> 00:26:21.019 global AI and data boom. They don't sell the 00:26:21.019 --> 00:26:22.960 chips. They don't sell the software. They sell 00:26:22.960 --> 00:26:24.920 the non -negotiable physical links that make 00:26:24.920 --> 00:26:27.799 the whole thing possible. That right there is 00:26:27.799 --> 00:26:30.380 what true infrastructure power looks like in 00:26:30.380 --> 00:26:31.279 the 21st century.