Wiwynn Corp (緯穎), a supplier of artificial intelligence (AI) servers and components, on Thursday said that it plans to invest US$300 million to build its first manufacturing facility in Texas to cope with the realignment of global supply chains amid escalating macroeconomic uncertainty.
Wiwynn operates manufacturing facilities in Taiwan, Mexico and Malaysia. The Texas factory plan came as US President Donald Trump said that sweeping tariffs of 25 percent on Mexican and Canadian imports would take effect on March 4.
Domestically, Wiwynn is also increasing its capacity. The company on Thursday raised capital expenditures by about 29 percent for its new manufacturing facility and office building at the Southern Science Park to NT$8 billion (US$243.8 million), higher than an earlier estimate of NT$6.2 billion.
Photo: CNA
The new investment would further strengthen the company’s global production footprint and expand its scope of delivery, the company said.
Wiwynn counts US cloud services providers Meta Platforms Inc and Microsoft Corp among its major clients.
“The company is optimistic about data center long-term market demand and growth, and is committed to continuous investments to deepen AI, computing, thermal, and technologies and product development,” Wiwynn said. “The company will also flexibly adjust the global capacity allocation to respond to political and economic dynamics, and customer demand.”
Wiwynn on Thursday posted the strongest quarterly net profit in the company’s history last quarter, amounting NT$7.05 billion, benefiting from strong demand for regular and AI-enabled servers.
That means last quarter’s net profits had doubled from NT$3.51 billion in the fourth quarter of 2023. Earnings per share soared from NT$20.1 a year ago to NT$37.9 last quarter.
The company previously told investors that AI servers accounted for about half of its total revenue in the final quarter of last year, compared with about 20 percent in the first quarter. Revenue last quarter surged 97.5 percent year-on-year to NT$115.61 billion.
Last year as a whole, Wiwynn’s net profits surged 89 percent year-on-year to NT$22.78 billion compared with NT$12.04 billion in 2023. EPS climbed from NT$68.88 to NT$126.57.
Gross margin improved from 9.37 percent in 2023 to 10.37 percent last year, while revenue hit a record high after rising 49 percent from NT$241.90 billion to NT$360.54 billion last year.
The company’s board of directors on Thursday approved a cash dividend distribution of NT$74 per common share, setting an all-time high. That represented a payout ratio of 58.47 percent.
JITTERS: Nexperia has a 20 percent market share for chips powering simpler features such as window controls, and changing supply chains could take years European carmakers are looking into ways to scratch components made with parts from China, spooked by deepening geopolitical spats playing out through chipmaker Nexperia BV and Beijing’s export controls on rare earths. To protect operations from trade ructions, several automakers are pushing major suppliers to find permanent alternatives to Chinese semiconductors, people familiar with the matter said. The industry is considering broader changes to its supply chain to adapt to shifting geopolitics, Europe’s main suppliers lobby CLEPA head Matthias Zink said. “We had some indications already — questions like: ‘How can you supply me without this dependency on China?’” Zink, who also
At least US$50 million for the freedom of an Emirati sheikh: That is the king’s ransom paid two weeks ago to militants linked to al-Qaeda who are pushing to topple the Malian government and impose Islamic law. Alongside a crippling fuel blockade, the Group for the Support of Islam and Muslims (JNIM) has made kidnapping wealthy foreigners for a ransom a pillar of its strategy of “economic jihad.” Its goal: Oust the junta, which has struggled to contain Mali’s decade-long insurgency since taking power following back-to-back coups in 2020 and 2021, by scaring away investors and paralyzing the west African country’s economy.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) received about NT$147 billion (US$4.71 billion) in subsidies from the US, Japanese, German and Chinese governments over the past two years for its global expansion. Financial data compiled by the world’s largest contract chipmaker showed the company secured NT$4.77 billion in subsidies from the governments in the third quarter, bringing the total for the first three quarters of the year to about NT$71.9 billion. Along with the NT$75.16 billion in financial aid TSMC received last year, the chipmaker obtained NT$147 billion in subsidies in almost two years, the data showed. The subsidies received by its subsidiaries —
BUST FEARS: While a KMT legislator asked if an AI bubble could affect Taiwan, the DGBAS minister said the sector appears on track to continue growing The local property market has cooled down moderately following a series of credit control measures designed to contain speculation, the central bank said yesterday, while remaining tight-lipped about potential rule relaxations. Lawmakers in a meeting of the legislature’s Finance Committee voiced concerns to central bank officials that the credit control measures have adversely affected the government’s tax income and small and medium-sized property developers, with limited positive effects. Housing prices have been climbing since 2016, even when the central bank imposed its first set of control measures in 2020, Chinese Nationalist Party (KMT) Legislator Lo Ting-wei (羅廷瑋) said. “Since the second half of
RSS