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.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI