Wiwynn Corp (緯穎科技) is to continue capacity expansion to meet market demand, the maker of cloud-based servers and hyperscale data centers said yesterday, adding that the growth momentum of artificial intelligence (AI) servers would remain strong next year.
The company’s non-current assets including factories account for 10 percent of total assets, indicating that Wiwynn has actively and continuously expanded its production capacity in recent years, chief financial officer Harry Chen (陳昌偉) told investors yesterday.
Chen said the company’s board of directors on Monday approved a plan to lease land on the Tainan campus of the Southern Taiwan Science Park and build a new factory there to produce server circuit boards and for testing and certifying new products including AI servers and cloud-based devices.
Photo courtesy of Wiwynn Corp
The construction cost is estimated at about NT$6.2 billion (US$192.6 million), he said.
The new investment comes as the company installed more production equipment at its existing factory in Tainan this month as market demand continues to rise, Wiwynn said.
The company started construction of its first factory in Malaysia in the third quarter of this year, mainly for systems integration services, it said. The second factory in Malaysia, primarily for the production of motherboards, is expected to begin production in the second half of next year, it added.
The company also plans to expand capacity at its factories in Mexico to enhance supply chain resilience, it said.
Wiwynn reported a net profit of NT$2.62 billion (US$81.4 million) in the July-to-September quarter, flat from the previous quarter but down 39.4 percent from NT$4.32 billion a year earlier, with earnings per share of NT$14.96.
Gross margin improved to 9.6 percent in the third quarter, compared with 8.8 percent in the previous quarter and 8.1 percent a year ago. Last quarter’s gross margin was the company’s best quarterly figure since its Taiwan Stock Exchange debut in late March 2019.
During the first three quarters of this year, net profit contracted 16.6 percent to NT$8.53 billion, from NT$10.22 billion a year ago, with earnings per share dropping to NT$48.78 from NT$58.48.
Third-quarter revenue dropped 33.7 percent year-on-year to NT$52.82 billion and cumulative revenue in the first three quarters fell 10.8 percent annually to NT$183.35 billion.
Chen said the annual decrease in revenue in the third quarter was not unexpected, but added that AI server revenue exceeded 10 percent of its total revenue in the quarter, meeting the company’s expectations.
DIGITAL RIGHTS: Although Ottawa did not identify any particular country as a risk in the video-game sphere, it has repeatedly accused China and Russia of interference Canada is to enhance its scrutiny of foreign investments in video games and other interactive media, seeking to block outside actors from manipulating public opinion in the country. “Hostile state-sponsored or state-influenced actors may try to leverage foreign investments in the interactive digital media sector to spread disinformation and manipulate information,” Canadian Minister of Innovation, Science and Industry Francois-Philippe Champagne said on Friday in a joint announcement with Canadian Minister of Heritage Pascale St-Onge. Starting immediately, Ottawa is to increase scrutiny of investments “by entities owned or influenced by foreign states, particularly states that engage in activities that may pose a risk
CHIEF OPERATING OFFICERS: Y.J. Mii, who is in charge of R&D, and Y.P. Chyn, who is responsible for fab operations and management, start their new positions today Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday promoted Y.J. Mii (米玉傑) and Y.P. Chyn (秦永沛) as co-chief operating officers (COO) of the world’s biggest contract chipmaker, signaling the formation of a succession team. The latest executive reshuffle comes after TSMC chairman Mark Liu (劉德音) in December last year announced that he is to retire this year. CEO C.C. Wei (魏哲家) has been recommended as his successor while continuing to serve in his current position. Mii and Chyn, as well as the company’s human resources, finance, legal and corporate planning units, are to report directly to Wei, a company statement released after the
SEMICONDUCTORS: Under India’s chipmaking incentive plan, the government would bear half the cost of any approved project, with an initial budget of US$10 billion for the task The Indian government, after years of watching from the sidelines of the chips race, now has to evaluate US$21 billion of semiconductor proposals and divvy up taxpayer support between foreign chipmakers, local champions or some combination of the two. Israel’s Tower Semiconductor Ltd is proposing a US$9 billion plant, while India’s Tata Group has put forward an US$8 billion chip fabrication unit, people familiar with the matter said. Both projects would be in Indian Prime Minister Narendra Modi’s home state of Gujarat, the people said. Semiconductors have grown into a key geopolitical battleground, with the US, Japan and China investing heavily in
AI PRIORITIZED: Analysts said the move was a good strategic decision for Apple, which was still years away from producing a vehicle and facing a cooling market Apple Inc is canceling a decade-long effort to build an electric vehicle (EV), people with knowledge of the matter said, abandoning one of the most ambitious projects in the history of the firm. Apple made the disclosure internally on Tuesday, surprising about 2,000 employees working on the project, the sources said. The decision was shared by Apple chief operating officer Jeff Williams and Kevin Lynch, a vice president in charge of the effort, the sources said. The two executives told staff that the project would begin winding down and that many employees on the EV team — known as the Special Projects Group