Delta Electronics Inc (台達電), the nation’s leading power and thermal solutions provider, remains cautiously optimistic about the second half of the year, chairman Yancey Hai (海英俊) said at the company’s annual general meeting yesterday, citing market uncertainties.
While the second half traditionally brings in more revenue, Hai said that the unresolved trade conflict between the US and China has caused market volatility, especially with the recent US trade restrictions on Huawei Technologies Co (華為).
Delta provides fans and passive components to Huawei, contributing less than 1 percent to the company’s revenue, Hai said.
Photo: Chen Jou-chin, Taipei Times
The overall supply chain has been affected by the moves against Huawei and more complications could arise as the industry looks to rebuild the supply chain, he said.
Hai, alluding to the black swan theory, discussed the likelihood that US President Donald Trump’s administration would introduce tariffs on another US$300 billion in Chinese goods, warning that end demand would suffer the repercussions.
Delta reported revenue of NT$24.56 billion (US$781.27 million) for last month, an increase of 23.99 percent from a year earlier, with the power electronics segment accounting for 50 percent of overall sales, followed by the infrastructure segment with 36 percent and the automation segment with 14 percent.
Cumulative revenue grew 14.77 percent annually to NT$102.09 billion in the first five months of the year, it said.
Delta predicts that 5 to 7 percent of its revenue has been affected by the ongoing US-China trade tensions, with the networks and communications segment suffering the most.
To circumvent US tariffs, Delta has moved a majority of its advanced production lines for its networks and communications business to Taiwan, Hai said.
The company has also expanded, setting up production lines in Thailand, India and Slovakia, he added.
Delta in April acquired a 63.78 percent stake in Delta Electronics (Thailand) PCL (泰達電).
At yesterday’s meeting, shareholders approved a proposal to distribute a cash dividend of NT$5 per share, which would represent a payout ratio of 71.43 percent based on last year’s earnings per share of NT$7 and imply a dividend yield of 3.3 percent based on the stock’s closing price of NT$151.5 in Taipei trading yesterday.
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