Rugged PC vendor Getac Technology Corp (神基) has budgeted capital expenditure of between NT$1 billion and NT$1.2 billion (US$34.31 million and US$41.17 million) for this year, up from between NT$800 million and NT$1 billion last year.
The firm plans to spend most of the funds expanding production lines and increasing automation in its automotive parts business, Getac chairman James Hwang (黃明漢) said at an investors’ conference in Taipei on Monday last week.
Hwang said the company would devote its new plant in Kunshan, China, to the production of advanced driver-assistance systems (ADAS), mass production of which it is to start in the fourth quarter of this year.
The company’s mechanical components for auto parts, such as seat belt spindles and spools, could make up 20 percent of its revenue this year, up from last year’s 15 percent, Hwang said.
Getac, based in Hsinchu County’s Baoshan Township (寶山), manufactures rugged notebook, tablet and handheld computers. The company has also been developing components for use in ADAS and new-energy vehicles over the past few years, in view of the growing prominence of artificial intelligence and autonomous driving.
Rugged computers, which are used in difficult environments for military, medical and transportation purposes, accounted for 46 percent of Getac’s sales last year, followed by general mechanical components for consumer electronics, which made up 31 percent.
Mechanical components for automobiles contributed 15 percent of the company’s sales and aerospace fasteners 8 percent, company data showed.
The company posted record-high consolidated revenue of NT$22.197 billion last year, up 8.77 percent from 2016.
Hwang said he expects revenue this year to rise further, driven by strong demand for rugged notebooks and ADAS-related products.
Revenue from rugged computers and automotive electronics could surge by a double-digit percentage this year, which would push the company’s business momentum to peak levels in the fourth quarter, he added.
Getac in November last year announced that it would acquire WHP Workflow Solutions Inc in North Charleston, South Carolina, as the company attempts to branch into the video recording and software businesses.
Hwang said the wholly-owned subsidiary would generate a substantial revenue contribution in the second half of next year and would be one of Getac’s major growth drivers over the next three to five years.
Getac reported a net income of NT$1.91 billion last year, making for earnings per share of NT$3.38. That was down from NT$2.08 billion in 2016, or NT$3.68 per share.
US demand for rugged PCs is expected to remain strong this year amid an economic recovery and as Washington plans to expand domestic demand, and Getac’s first-quarter revenue is forecast to grow 5.62 percent year-on-year to NT$5.49 billion, with earnings per share of NT$0.76, Capital Investment Management Corp (群益投顧) said in a note on Tuesday.
Getac’s board has approved the distribution of a cash dividend of NT$2.5 per share, which represents a payout ratio of 73.96 percent, down from 81.52 percent last year.
TECH TITAN: Pandemic-era demand for semiconductors turbocharged the nation’s GDP per capita to surpass South Korea’s, but it still remains half that of Singapore Taiwan is set to surpass South Korea this year in terms of wealth for the first time in more than two decades, marking a shift in Asia’s economic ranks made possible by the ascent of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). According to the latest forecasts released on Thursday by the central bank, Taiwan’s GDP is expected to expand 4.55 percent this year, a further upward revision from the 4.45 percent estimate made by the statistics bureau last month. The growth trajectory puts Taiwan on track to exceed South Korea’s GDP per capita — a key measure of living standards — a
READY TO HELP: Should TSMC require assistance, the government would fully cooperate in helping to speed up the establishment of the Chiayi plant, an official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said its investment plans in Taiwan are “unchanged” amid speculation that the chipmaker might have suspended construction work on its second chip packaging plant in Chiayi County and plans to move equipment arranged for the plant to the US. The Chinese-language Economic Daily News reported earlier yesterday that TSMC had halted the construction of the chip packaging plant, which was scheduled to be completed next year and begin mass production in 2028. TSMC did not directly address whether construction of the plant had halted, but said its investment plans in Taiwan remain “unchanged.” The chipmaker started
MORTGAGE WORRIES: About 34% of respondents to a survey said they would approach multiple lenders to pay for a home, while 29.2% said they would ask family for help New housing projects in Taiwan’s six special municipalities, as well as Hsinchu city and county, are projected to total NT$710.65 billion (US$23.61 billion) in the upcoming fall sales season, a record 30 percent decrease from a year earlier, as tighter mortgage rules prompt developers to pull back, property listing platform 591.com (591新建案) said yesterday. The number of projects has also fallen to 312, a more than 20 percent decrease year-on-year, underscoring weakening sentiment and momentum amid lingering policy and financing headwinds. New Taipei City and Taoyuan bucked the downturn in project value, while Taipei, Hsinchu city and county, Taichung, Tainan and Kaohsiung
Micro-Star International Co (MSI, 微星科技) is expanding notebook computer production in India after partnering with Indian electronics maker Syrma SGS Technology Ltd late last year, as the Taiwanese company seeks to tap into the local market. MSI also plans to manufacture some of its new gaming PCs powered by Nvidia Corp’s RTX 50 graphics cards in India, while adding more advanced and design-focused PCs and notebooks at Syrma’s plant in Chennai, a source told the Taipei Times yesterday on condition of anonymity. MSI’s deployment in India is driven not only by cost advantages, but also by India’s rapidly expanding consumer market and
RSS