Chipmaker targets hybrid cars as engine for revenue growth.

AN increasing market for hybrid cars is a chief target of International Rectifier Corp., the El Segundo-based chipmaker whose power management components wind up in a range of products, from computers to washing machines to automobiles.

Traditionally, the company has made parts that go into the cabin area of the car, said Graham Robertson, a company spokesman. But autos are requiring more sophisticated electronic components under the hood.

International Rectifier has reported recent contract wins from a number of major automobile manufacturers and suppliers for integrated starter alternators, electric power steering systems, engine preheat systems and direct fuel injection systems.

Electronic engine components are most prevalent in hybrid cars, which must operate on electronic power while the car temporarily turns off its gasoline motor at stops or at low speeds. Gasoline-powered cars can also improve energy consumption with greater use of electronic engine components.

International Rectifier reported net income of $29.4 million for the fourth quarter ended June 30, compared with $13.2 million for the like period a year earlier. Revenue rose 30.8 percent to $298.6 million. The stock has fallen 26.6 percent since the beginning of the year to $36.77 as of Aug. 5, tracking a general slump in the chip industry.

Last week, Toyota Motor Corp. said it would boost production of its popular Prius hybrid vehicles, while Ford Motor Co. kicked off production of the hybrid version of its Escape sport utility vehicle. Honda Motor Co. already makes two hybrid models, while Toyota and other manufacturers are about to introduce hybrids to the market, where demand has so far outstripped supply.

International Rectifier cannot disclose whether its products are on any of these models, Robertson said. However, the worldwide market for electronic automobile components is expected to rise to $11 billion in the next 10 years, Robertson said. If the company can hold its present market share, this segment of its business would be three times larger than the overall company is today.

"Fifty percent of the world's energy goes into motors and 50 percent of that is wasted," Robertson said. "We have the goal of saving that 25 percent of the world's energy."