Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said second-quarter revenue is expected to surpass the first quarter, which rose 30 percent year-on-year to NT$118.92 billion (US$3.71 billion).
Revenue this quarter is likely to grow, as US clients have front-loaded orders ahead of US President Donald Trump’s planned tariffs on Taiwanese goods, Delta chairman Ping Cheng (鄭平) said at an earnings conference in Taipei, referring to the 90-day pause in tariff implementation Trump announced on April 9.
While situations in the third and fourth quarters remain unclear, “We will not halt our long-term deployments and do not plan to change our budget this year,” Cheng said.
Photo: Fang Wei-chieh, Taipei Times
Asked whether Delta would build a new factory in the US, Cheng said the company has sufficient production sites around the world and would assess total costs, not just tariffs, before making a decision.
Delta has about 50 percent of its production capacity in China, while it continues to build new factories in Thailand, and maintains sufficient capacity at sites in Taiwan and India, he said.
“We are now building around five new factories in Thailand, and are considering designating it as our second headquarters,” Cheng said. “Our data center in Thailand has been well established, and can retrieve data from our headquarters in Taiwan with only two days of information loss.”
The company also operates small-scale production facilities in the US, Slovakia and Brazil, he added.
Asked about the company’s recent design progress on the new heat dissipation components made for Nvidia Corp’s GB300 server, Delta vice president for corporate investment Lanford Liu (劉亮甫) said the design is still under discussion.
If power consumption continues to rise, some high-end products might require immersion cooling technology, leaving room for further thermal design adjustments, he added.
While traditional data centers can still support graphics processing units (GPUs) such as the H100 and H200 with air-cooling systems, newer models like the GB200 and GB300 require water cooling, and are incompatible with existing layouts and power infrastructure, Cheng said at a separate forum yesterday.
To address this, Delta created a new artificial intelligence (AI) containerized data center that integrates computer racks, cooling systems and power supply units.
The modules are preassembled at factories and can be deployed quickly on-site by simply connecting the cables, he said.
In the first quarter, Delta’s net profit reached NT$10.23 billion, or earnings per share of NT$3.94 — the second-highest ever — driven by growing demand for AI power supply products and heat dissipation components.
Gross margin rose 2.3 percentage points year-on-year to 31.8 percent, while gross profit reached NT$37.8 billion, up 40 percent from a year earlier due to a lower base effect, Delta chief financial officer Yu Po-wen (余博文) said.
Operating expenses rose 21 percent in the first quarter due to higher machinery purchases, but are expected to decline in the following quarters, Yu said.
Sales of power electronics products rose 39 percent year-on-year to NT$59.77 billion in the first quarter, accounting for 50 percent of Delta’s total sales, followed by infrastructure at 29 percent, automation at 12 percent and mobility at 9 percent.
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