MiTAC Holdings Corp (神達控股) said it is cautiously optimistic about revenue in the second half of the year, as first-half sales surged 121 percent year-on-year to NT$50.29 billion (US$1.67 billion) on strong server demand from hyperscalers and cloud service providers.
Server sales accounted for 89.5 percent of its total revenue in the first half, an annual increase of 144.9 percent, a company official told the Taipei Times by telephone on Monday.
The company is cautious about its outlook for the second half due to uncertainties from US tariffs and the appreciation of the New Taiwan dollar against the US dollar, said the official, who declined to be named.
Photo: CNA
Still, revenue this quarter is expected to increase from NT$15.15 billion a year earlier, supported by expanded capacity from the company’s plant in Miaoli County’s Jhunan Township (竹南), which is slated to begin mass production as early as next month, the official said.
The company also operates a plant in Hsinchu County’s Baoshan Township (寶山), and is building two new plants in California to produce liquid cooling racks.
Pilot runs at the US facilities are expected later this year, with mass production set to start as early as the first quarter of next year, the official said.
The appreciation of the NT dollar shaved about 1 percent off MiTAC’s revenue in the second quarter, but the company did not incur foreign-exchange losses, as most of its costs and revenue are denominated in US dollars and it has made several investments in North America, the official said.
MiTAC Holdings comprises subsidiaries including MiTAC Computing Technology Corp (神雲科技), MiTAC Digital Technology Corp (神達數位) and MiTAC International Corp (神達電腦).
MiTAC Computing manufactures servers, storage devices and industrial computers, while MiTAC Digital focuses on artificial intelligence of things, mobility products and telematics, including in-vehicle computers and related software.
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