Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors.
On an annual basis, revenue last quarter grew 22.07 percent, the company said.
Analysts on average estimated about NT$2.4 trillion increase.
Photo: Fang Wei-chieh, Taipei Times
Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses.
This quarter is traditionally a low season for information and communication technology, but that is expected to be partially offset by the continued rise in AI server rack shipments, Hon Hai said.
First-quarter revenue growth could also be hurt by a high comparison base last year, but sales could still come closer to the higher end of the previous five-year range, the company added.
Hon Hai in November last year said it remains bullish about this year, driven by strong growth in its cloud and networking products.
Last quarter, cloud and networking products — primarily servers — registered a robust year-on-year increase in revenue, in line with the company’s guidance, and electronic components also posted strong sales growth, the company said.
However, smart consumer electronics revenue edged down slightly from a year earlier owing to exchange rate fluctuations, it said, adding that computing products also retreated due to softening demand.
Overall, Hon Hai last year reported robust revenue growth of 18.07 percent year-on-year to NT$8.1 trillion, a record high and better than its earlier forecast, up from NT$6.86 trillion the previous year, the company said.
It was the first time the company’s annual revenue increased by more than NT$1 trillion from a year earlier, thanks to strong growth in cloud and networking products, Hon Hai said.
Growth in its AI server revenue is expected to continue this year and the next two to three years, supported by rising capital expenditure from major cloud service providers, it said.
Capital expenditures from Microsoft Corp, Alphabet Inc, Amazon.com Inc and Meta Platforms Inc are expected to rise 34 percent to about US$440 billion combined over the next year, data compiled by Bloomberg showed.
Meanwhile, chip firms such as Nvidia and memory partner Micron Technology Inc have reaffirmed expectations that AI demand would remain solid in the coming quarters.
Additional reporting by Bloomberg
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops, but a lifeline for growers struggling to make ends meet in a city-state with high prices and little vacant land. The future agriculture hub is part of a joint special economic zone launched last year by the two neighbors, expected to cost US$123 million and produce 10,000 tonnes of fresh produce annually. It is attracting Singaporean farmers with promises of cheaper land, labor and energy just over the border.
A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while California Governor Gavin Newsom of the Democratic Party maneuvers to defeat a levy that he fears would lead to an exodus of wealth. A technology mecca, California has more billionaires than any other US state — a few hundred, by some estimates. About half its personal income tax revenue, a financial backbone in the nearly US$350 billion budget, comes from the top 1 percent of earners. A large healthcare union is attempting to place a proposal before
RSS