Yageo Corp (國巨) on Wednesday issued a positive forecast for business and gross margin prospects as merger-and-acquisition deals bear fruit.
Chairman Pierre Chen (陳泰銘) and CEO David Wang (王淡如) told a virtual investors’ conference that the world’s third-largest supplier of multilayer ceramic capacitors (MLCCs) continued to see strong customer booking this year and expected demand to remain robust in the next one to two years, while it expands capacity worldwide, mainly for specialty products, according to documents obtained by the Taipei Times.
Kemet Corp, which Yageo acquired last year and specializes in MLCCs and other passive components for vehicles, plans to boost capacity at its Mexican factory, which is running at full capacity, Yageo said.
Photo: Tu Chien-jung, Taipei Times
The plant generated more than 90 percent of its revenue from passive automotive components, it said.
Yageo also plans to expand capacity at plants in Kaohsiung and Suzhou, China, it said.
Passive automotive components and those used in industrial devices, medical equipment and data centers are considered specialty products, which deliver higher gross margins due to higher prices and longer supply contracts, the company said.
With the acquisition of Kemet and Pulse Electronics Corp last year, Yageo expects specialty products to make up 82 percent of revenue in 2023, compared with 75 percent this year, while commodity products would make up the rest.
Other passive components, which are used mostly for computers, consumer electronics and communication devices, are vulnerable to price volatility and could adversely affect gross margin, Yageo said.
Due to improvements in its product mix, Yageo expects gross margin to rise further, after climbing to 39.1 percent last quarter from 38 percent in the previous quarter, the company said.
Regarding a strategic alliance with Hon Hai Precision Industry Co (鴻海精密), Yageo said it would secure a bigger order allocation of 50 percent from Hon Hai, compared with 25 percent previously.
The firms last month agreed to form a joint venture, XSemi Corp (國瀚半導體), to focus on chips used in electric vehicles and electronic devices.
Yageo shares rose 2.64 percent to NT$545 yesterday, the highest since April 29.
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
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
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS