Yeong Guan Energy Technology Group Co (YGG, 永冠能源), one of the nation’s leading advanced casting components suppliers, on Monday said its new factory in Taichung would begin production next year as scheduled.
YGG, headquartered in China’s Zhejiang Province, provides casting components for specialized applications, mainly in the fields of energy, industrial machinery, medical equipment and injection molding.
After overcoming some hurdles, the new plant is set to finally start operations next year. Construction work was almost delayed, as the company was forced to relocate the plant to an industrial area after the initially planned land in the electricity zone of the Port of Taichung (台中港) was taken back by the city government for other use.
The factory is to produce offshore wind turbine casting components, YGG said in a statement.
The casting components manufacturer reported second-quarter net profit of NT$324 million (US$10.1 million), or NT$2.77 per share, according to the statement.
First-half net profit expanded 15.2 percent to NT$623 million, compared with NT$541 million in the same period last year, the statement said.
However, revenue dropped 3.4 percent to NT$3.91 billion, from NT$4.5 billion a year ago, it added.
Shipments in the first two quarters rose 2.8 percent year-on-year to 77,000 tonnes, company data showed.
Asked about its outlook for the second half, YGG said it expects shipments to drop in the current quarter, as customers, mostly wind power turbine maker, are entering a period of inventory adjustment.
For the full year, YGG plans to ship 152,000 tonnes of goods, a flat forecast compared with shipments last year, it said.
The firm plans to raise the revenue contribution of its wind power business from last year’s 59 percent to 70 percent this year, given increasing demand for components used in wind turbines, YGG told investors in April.
Larger offshore wind turbines are to be the next focus products, the company said, adding that wind turbines with a capacity of more than 6 megawatts are expected to be YGG’s new growth driver next year in terms of shipments and revenue.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
Apple Inc has been developing a homegrown chip to run artificial intelligence (AI) tools in data centers, although it is unclear if the semiconductor would ever be deployed, the Wall Street Journal reported on Monday. The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices, according to the Journal, which cited unidentified people familiar with the matter. The server project is code-named ACDC (Apple Chips in Data Center) within the company, aiming to utilize Apple’s expertise in chip design for the company’s server infrastructure, the newspaper said. While this initiative has been
GlobalWafers Co (環球晶圓), the world’s No. 3 silicon wafer supplier, yesterday said that revenue would rise moderately in the second half of this year, driven primarily by robust demand for advanced wafers used in high-bandwidth memory (HBM) chips, a key component of artificial intelligence (AI) technology. “The first quarter is the lowest point of this cycle. The second half will be better than the first for the whole semiconductor industry and for GlobalWafers,” chairwoman Doris Hsu (徐秀蘭) said during an online investors’ conference. “HBM would definitely be the key growth driver in the second half,” Hsu said. “That is our big hope
The consumer price index (CPI) last month eased to 1.95 percent, below the central bank’s 2 percent target, as food and entertainment cost increases decelerated, helped by stable egg prices, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. The slowdown bucked predictions by policymakers and academics that inflationary pressures would build up following double-digit electricity rate hikes on April 1. “The latest CPI data came after the cost of eating out and rent grew moderately amid mixed international raw material prices,” DGBAS official Tsao Chih-hung (曹志弘) told a news conference in Taipei. The central bank in March raised interest rates by