Passive components maker Ta-i Technology Co Ltd (大毅) yesterday said that it plans to invest US$12 million to set up a new unit in Vietnam to provide services to customers with operations there.
The investment is another indicator that the company has an upbeat outlook for next year.
Ta-i last month told investors that it was optimistic about customer demand next year, given the good progress in vaccine development, which should keep the spread of COVID-19 infections under control.
The new Vietnamese unit would give a competitive edge to the company in the longer term, Ta-i said in a statement submitted to the Taiwan Stock Exchange.
The company made the announcement after the board of directors approved the investment.
It plans to use its own capital to fund the establishment of the unit, as the firm’s financial performance has been strong in the first three quarters of this year, unaffected by the pandemic, Ta-i said.
Net profit surged 93 percent to NT$609.05 million (US$21.33 million) in the first three quarters, compared with NT$315.22 million in the corresponding period last year, a company financial statement said.
That translated into earnings per share of NT$4.33 during the nine-month period, up from NT$1.77 a year earlier.
Revenue grew 19 percent year-on-year to NT$4 billion in the first three quarters, up from NT$3.35 billion in the same period last year, the statement showed.
Chip resistors contributed 66 percent of the firm’s revenue in the first three quarters, it said.
By segment, consumer electronics was the biggest revenue contributor, with a 43 percent share in the first three quarters, Ta-i said.
The company counts Panasonic Corp, Sony Corp, Samsung Electronics Co and Nintendo Co as its clients in the consumer electronics segment, it said.
The greater China area contributed a lion’s share of 74 percent to Ta-i’s revenue, while Asia was second with an 18 percent share, company data showed.
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