Inventec Corp (英業達) chairman Richard Lee (李詩欽) yesterday said he is seeking a successor by June and hopes to lower the management’s average age to energize the company.
“The new chairman should be younger than 65 years old. I will make this happen at a board meeting in June,” the 69-year-old Lee told reporters ahead of a company event at the Nangang Exhibition Hall in Taipei.
Lee, who joined Inventec the year after it was established in 1975, has been chairman since founder Yeh Kuo-yi (葉國一) retired in 2008.
Under his leadership, Inventec secured smartphone orders from Chinese company Xiaomi Corp (小米) in 2010, merged its solar subsidiaries Inventec Solar Energy Corp (英穩達) and Inventec Energy Corp (英懋達) in 2015, and increased its server segment’s revenue contribution from less than 20 percent to between 35 and 40 percent last year.
The company also became the sole manufacturer of Apple Inc’s wireless earphones the AirPod last year.
Lee said the board would propose that Inventec Solar Energy chairman Tom Cho (卓桐華) become the sixth director at a board meeting at the end of March.
Inventec president Huang Kuo-chun (黃國鈞), Inventec Appliance Corp (英華達) chairman Jackson Chang (張景嵩) — both directors — and Cho are the three main candidates for the chairmanship, as they are all in charge of business units, Lee said.
The board is to elect a new chairman and nominate a new president at the meeting in June, Lee said, adding that he would remain a director “for a while” after the election.
Lee said Inventec is confident that its total shipments, which include notebook computers, servers and smart devices, would reach 100 million units this year.
The company has failed to achieve that target for the past two years due to a smartphone client changing its order. It shipped slightly more than 80 million units last year, flat from the previous year.
Inventec Appliance chief executive David Ho (何代水) said the company would ship 75 million smart devices this year, 25 percent more than last year’s 60 million units.
Ho said he is confident of reaching the goal as order visibility for wearable products and smart home devices is very clear “throughout” the entire year.
Production utilization for smart devices would run at full capacity this quarter, Ho said, adding that two of the wearable product lines would work extra shifts during the Lunar New Year holiday to meet strong demand from clients.
Inventec’s combined revenue climbed 9.28 percent year-on-year to NT$390.04 billion (US$12.19 billion) in the first 11 months of last year. The company is scheduled to release last month’s results on Monday.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to