Contract electronics manufacturer Wistron Corp (緯創) on Thursday reported revenue of NT$71.9 billion (US$2.56 billion) for last month, up 17.92 percent month-on-month, but down 8.98 percent year-on-year, as component shortages limited its ability to fill orders.
Orders far outpaced the company’s ability to produce goods, whether it was laptops, servers, desktops or monitors, Wistron said in a statement, adding that it was uncertain when the shortages would end.
In the first six months of the year, cumulative revenue decreased 4.2 percent from a year earlier to NT$378.24 billion, the company said.
Photo: EPA-EFE
In a separate statement, Wistron said it would acquire 100 percent of Kaohsiung Opto-Electrics Inc (KOE, 高雄晶傑達光電), a wholly-owned subsidiary of JDI Taiwan Inc (台灣晶端顯示), itself a subsidiary of Tokyo-based Japan Display Inc.
The purchase, to be made through Wistron’s Wise Cap Ltd (鼎創) subsidiary, is tentatively set at a transaction value of ￥8 billion (US$72.62 million).
“The final price will be confirmed after the related parties complete due diligence and sign the share purchase agreement,” Wistron said.
The deal is expected to be completed by the end of this quarter.
“Through this acquisition, Wistron will further strengthen its partnership with JDI, and continue to expand the capacity and product portfolio of KOE,” it said.
Fellow contract electronics maker Inventec Corp (英業達) reported revenue of NT$41.27 billion for last month, up 16.79 percent month-on-month, but down 22.72 percent year-on-year.
In the first six months, revenue totaled NT$226.65 billion, down 4.5 percent from a year earlier, the company said.
Inventec’s product lineup includes notebook computers, smart devices and servers, but component shortages remain an issue and affect its ability to fulfill orders, it said.
Bigger rivals Quanta Computer Inc (廣達), Compal Electronics Inc (仁寶) and Pegatron Corp (和碩) posted mixed revenue results for last month and the first half of the year.
Quanta’s sales last month decreased 3.3 percent year-on-year to NT$90.39 billion, but sales in the first half of the year increased 14.9 percent to NT$529.23 billion.
Compal’s sales increased 11.92 percent to NT$91.44 billion last month and rose 19.13 percent to NT$530.98 billion in the first half of the year, while Pegatron’s sales declined 19.17 percent year-on-year to NT$88.87 billion last month and also fell 19.4 percent to NT$488.82 billion in the first six months.
Hon Hai Precision Industry Co (鴻海精密) yesterday said that its research institute has launched its first advanced artificial intelligence (AI) large language model (LLM) using traditional Chinese, with technology assistance from Nvidia Corp. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), said the LLM, FoxBrain, is expected to improve its data analysis capabilities for smart manufacturing, and electric vehicle and smart city development. An LLM is a type of AI trained on vast amounts of text data and uses deep learning techniques, particularly neural networks, to process and generate language. They are essential for building and improving AI-powered servers. Nvidia provided assistance
DOMESTIC SUPPLY: The probe comes as Donald Trump has called for the repeal of the US$52.7 billion CHIPS and Science Act, which the US Congress passed in 2022 The Office of the US Trade Representative is to hold a hearing tomorrow into older Chinese-made “legacy” semiconductors that could heap more US tariffs on chips from China that power everyday goods from cars to washing machines to telecoms equipment. The probe, which began during former US president Joe Biden’s tenure in December last year, aims to protect US and other semiconductor producers from China’s massive state-driven buildup of domestic chip supply. A 50 percent US tariff on Chinese semiconductors began on Jan. 1. Legacy chips use older manufacturing processes introduced more than a decade ago and are often far simpler than
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
Gasoline and diesel prices this week are to decrease NT$0.5 and NT$1 per liter respectively as international crude prices continued to fall last week, CPC Corp, Taiwan (CPC, 台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. Effective today, gasoline prices at CPC and Formosa stations are to decrease to NT$29.2, NT$30.7 and NT$32.7 per liter for 92, 95 and 98-octane unleaded gasoline respectively, while premium diesel is to cost NT$27.9 per liter at CPC stations and NT$27.7 at Formosa pumps, the companies said in separate statements. Global crude oil prices dropped last week after the eight OPEC+ members said they would
RSS