Delta Electronics Inc (台達電) yesterday said revenue in the second half of this year is expected to surpass the first half, on the back of continued demand for power supply units and heat dissipation products for artificial intelligence (AI) servers.
Most large-scale cloud service providers continue to maintain high capital expenditures, lending support to the power supply unit business, Delta chairman Ping Cheng (鄭平) said.
AI-related products are expected to account for a larger share of total revenue in the second half, Cheng said, adding that AI-related power supply units made up 22 percent of second-quarter revenue, while liquid cooling products contributed 5 percent.
Photo courtesy of Delta Electronics Co
Delta vice president Lanford Liu (劉亮甫) said that power racks have become a design trend and a shift to those solutions appears likely, as Nvidia is expected to launch a new platform in 2027, although much depends on silicon design progress.
The company is activating three new factories in Thailand, with another three under construction, Cheng said.
As US tariffs for products made in Thailand remained uncertain, with a rate set at 36 percent, Delta would not further expand its capacity there if the rate stays the same, he said.
Meanwhile, as the supply chain for its liquid-to-air cooling systems is still primarily based in China, relocating production could pose capacity challenges, Cheng said.
Most modules, including heat-dissipating fans and fins, are assembled in Taiwan, he added.
Delta’s second-quarter revenue rose 19.91 percent year-on-year to NT$124.04 billion (US$4.15 billion), a record high for a single quarter, but was still below expectations due to the sharp appreciation of the New Taiwan dollar, company investor relations manager Rodney Liu (劉致遠) said.
Power electronics products accounted for 52 percent of Delta’s total sales in the second quarter, followed by infrastructure products at 28 percent, automation devices at 11 percent and mobility applications at 9 percent.
In the second quarter, Delta’s net profit reached NT$13.95 billion, with a record earnings per share of NT$5.37, driven by growing demand for AI power supply products and heat dissipation components, despite foreign exchange losses of NT$180 million in the quarter, Liu said.
Gross margin rose 1.4 percentage points year-on-year to 35.5 percent, while gross profit reached NT$44 billion, up 25 percent from a year earlier, also the highest on record.
Gross margin for the second half is expected to be similar to last year’s level, with AI-related products continuing to outperform other segments, cooling products to remain modest and mobility products to fall from a year earlier, Cheng said.
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial