Zinwell Corp (兆赫電子), one of the nation's biggest satellite communications parts supplier, expects set-top boxes and digital tuners to be the major drivers for its sales as digital broadcasting takes off, a top official said yesterday.
"We hope digital broadcasting- related products will be the major source of the company's sales in the future," Zinwell chairman Jack Huang (黃啟瑞) said.
Last year, sales from set-top boxes accounted for just 17 percent of the Hsinchu-based company's total sales of NT$3.26 billion.
Zinwell, which supplies set-top boxes to Motorola Inc and Toshiba Corp, aims to ship a combined total of 200,000 set-top boxes and digital tuners this year, said Huang, noting that this would be an 88-percent rise from last year.
He made the remarks on the sidelines of a press conference in which he announced that the company will deliver TV signals over high-speed Internet links to households in the middle of next month in cooperation with Seednet (數位聯合), the nation's biggest private Internet service provider.
Zinwell and Seednet hope to attract 100,000 subscribers to their new service by the end of this year, competing against state-run Chung-hwa Telecom Co (中華電信).
The nation's largest telecom operator began offering the "multimedia-on-demand" services to its asymmetrical digital subscriber line (ADSL) subscribers in March.
"We think the business will take off in the next two years and we hope that will stimulate the demand for set-top boxes," Huang said.
Zinwell will provide free multi-functional set-top boxes for subscribers for one year.
Zinwell believes the potential market for the service will be around 1.5 million families.
Lu Chia-lin (呂家霖), an analyst with Yuanta Core Pacific Securities (元大京華證券), however, expected a longer wait before the business blooms because of inadequate digital programs and bandwidth.
Zinwell expects significant growth from its set-top boxes and digital TV tuners, which convert analog signals into digital.
"The sales of TV decorder boxes will soar to make up a third of total sales this year as more countries start to deliver digital broadcasting signals over the airwaves," Lu said.
Zinwell is expected to report NT$80 million in net profits for the second quarter of this year, up from NT$70 million in the first three months, Lu said.
Lu expects to see big growth in the second half of the year as Zinwell starts to supply TV vendors -- including Sony Corp and Taiwan Matsushita Technical Service Co Ltd -- with digital tuners.
At present, most flat-screen TVs are not equipped with built-in digital tuners.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
DIGITAL COMMERCE: In 2016, only 2 percent of orders were delivered in Taiwan, but that has risen to 10 percent, Foodpanda Taiwan Co operations director Nick Yu said Online food delivery platforms have seen explosive growth in Taiwan this year, helped by business opportunities related to the COVID-19 pandemic, company executives said at a digital commerce conference in Taipei yesterday. When the threat of COVID-19 kept people from going out to eat, more people experimented with ordering food deliveries online, Foodpanda Taiwan Co Ltd (富胖達) operations director Nick Yu (余岳勳) said. Foodpanda started operations in Taiwan in 2012. “We experienced 5,000 percent growth in the past 24 months,” Yu said. “That’s more than the previous six years combined.” In 2016, only 2 percent of food orders were delivered in Taiwan, but that