Automotive lighting products manufacturer TYC Brother Industrial Co (堤維西) on Wednesday last week maintained a cautious outlook for the Chinese vehicle market in the second half of the year, saying it would slow expansion at its plant in Jiangsu’s Kunshan as the US-China trade dispute lingers.
The company, which supplies its products for global brands via original equipment manufacturing (OEM) or the aftermarket channel, said it expects increased aftermarket business in Europe and North America would help offset the decline in OEM business in China.
Aftermarket business accounted for more than 80 percent of the company’s revenue of NT$8.94 billion (US$284.62 million) in the first half, up 8.8 percent year-on-year.
With better performance in aftermarket business, TYC reported that net income climbed 15.63 percent annually and 17.57 percent quarterly to NT$246.81 million last quarter, or earnings per share of NT$0.79 and gross margin of 22.5 percent.
However, the company’s Varroc TYC Auto Lamps Co (大茂偉瑞柯) joint venture with Varroc Group of India had a net loss in the first half of about 1 million yuan (US$140,287), vice president and spokesperson Alex Weng (翁一峰) said.
Varroc TYC runs plants in Jiangsu’s Changzhou and Sichuan’s Chongqing that make OEM products for Ford Motor Co, Changan Automobile Group Co (長安汽車) and Jaguar Land Rover Automotive PLC.
Separately, Global PMX Co (智伸科) expects shipments of its automotive power and engine products to continue to rise in the second half of the year as demand from major clients for gasoline direct injection (GDI) and transmission products climbs, Global PMX spokeswoman Maggie Lin (林慈青) said on Wednesday.
GDI products, which accounted for 20 percent of the company’s total sales in the first half, would remain a major revenue source over the next three to five years as more vehicles, especially electric cars, adopt more energy-efficient power and engine systems, Lin said.
Increasing shipments of GDI products would help offset slowing sales of safety systems, dual-clutch transmission products and traditional port fuel injection devices in China this year, while the medical and electronic components business would see revenue grow 10 percent annually this year, the company said.
Global PMX counts Delphi Corp, Continental AG and BorgWarner Inc among its major clients. Auto parts contributed 74.43 percent of its sales in the first half, while medical components and vehicle electronics made up 23.91 percent, company data showed.
Meanwhile, aftermarket brake assemblies supplier Yusin Holding Corp (永新) plans to move part of its production line for brake pads from China to Malaysia if the US-China trade dispute worsens, as the company’s China-made products face 25 percent tariffs in the US, Yusin chairman Denni Chi (紀經得) said on Tuesday last week.
Net income surged 58.51 percent annually to NT$99.46 million in the first half, or EPS of NT$2.87. Gross margin was 32.16 percent, while revenue increased 17.45 percent to NT$804.76 million, company data showed.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
Industrial production expanded 22.31 percent annually last month to 107.51, as increases in demand for high-performance computing (HPC) and artificial intelligence (AI) applications drove demand for locally-made chips and components. The manufacturing production index climbed 23.68 percent year-on-year to 108.37, marking the 14th consecutive month of increase, the Ministry of Economic Affairs said. In the first four months of this year, industrial and manufacturing production indices expanded 14.31 percent and 15.22 percent year-on-year, ministry data showed. The growth momentum is to extend into this month, with the manufacturing production index expected to rise between 11 percent and 15.1 percent annually, Department of Statistics
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
RSS