Pegatron Corp (和碩) yesterday said that it expects increased demand for consumer electronics products would continue throughout this year, after the company posted a five-year high earnings per share for last year.
“Demand for consumer electronics will accelerate,” Pegatron chief executive officer Liao Syh-jang (廖賜政) told an investors’ conference in Taipei. “We can expect people to upgrade their handsets and new technologies to blossom in the automotive electronics sector.”
However, Pegatron is cautious about component shortages, Liao said.
Photo: Vanessa Cho, Taipei Times
“The unpredictable supply of components is the only factor that is beyond our control,” he said.
Pegatron has long invested in automotive electronic control system products, which Liao predicted would become a major source of revenue, in addition to electric bicycles, electric scooters and distance medical care.
The company said that it started supplying to Tesla Inc in January, and has established relations with other global automakers.
The long product life cycle of vehicles makes the sector a stable business opportunity for Pegatron, Liao said.
“Conventional cars have a life cycle of eight to 10 years, while electric vehicles have a life cycle of five to six years. Customers don’t tend to change suppliers during that time,” he said.
Asked why Pegatron has decided to set up a factory in North America, Liao said that being close to its customers is the main reason.
The company posted earnings per share of NT$7.73 for last year, up from NT$7.40 in 2019.
It is proposing distributing a cash dividend of NT$4.5 per share, representing a dividend yield of 5.94 percent based on its closing share price of NT$75.7 yesterday, it said.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
RSS