Contract notebook computer maker Wistron Corp (緯創) expects to regain growth momentum this year, thanks to rising demand for car electronics and smart devices, company chairman Simon Lin (林憲明) said yesterday.
Lin said the company had been through a difficult year last year due to weak demand for laptops with touch features and excessive capacity in the PC industry.
The firm’s revenues dropped 5.15 percent to NT$591.98 billion (US$18.74 billion) last year, from NT$624.16 billion in 2013.
Notebook shipments contracted 12.86 percent to 21 million units last year from 24.1 million the previous year.
“It was a very challenging year for us, but we are recovering slowly,” Lin told reporters at the firm’s year-end party, citing a 26.36 percent annual growth in sales in the last month.
Lin said he expects sales this month and next month could report year-on-year growth as well.
He said he is optimistic about Wistron’s outlook this year due to improving management and industrial automation.
He added that the firm would continue to invest in automation and in research and development.
The firm’s sales would be driven by smartphones, smart TVs, tablets and in-car entertainment electronics, Lin said.
He said he expects notebook shipments and sales to be flat this year.
Wistron shipped 1.7 million notebooks last month, down 15 percent from a month earlier, and said it expects the shipments of notebook to report a 15 percent decline this quarter from last quarter due to the slow season.
At its last investors’ conference, the company said it foresees the total shipments of its product lines could jump 67 percent annually to 25 million units, driven by smart devices.
Yuanta Securities Investment and Consulting Co (元大投顧) said Wistron is benefiting from the automobile network and smart grid themes, with both sectors set to make significant revenue contributions this year.
Yuanta analyst D.C. Wang said in a note released on Jan. 21 that he expects Wistron’s revenue to grow 4 percent this year from last year.
This quarter, however, the company’s sales and earnings would decline by 10 percent and 11 percent, respectively, due to seasonal factors, Wang said.
However, he expects Wistron to report record high revenues for the third quarter of this year.
Wistron shares closed at NT$28.5 in Taipei trading yesterday, remaining the same from the previous day, while the TAIEX gained 0.73 percent.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
RSS