Delta Electronics Inc’s (台達電) electric vehicle (EV) products are “growing by 40 to 50 percent year-on-year,” chairman Yancey Hai (海英俊) said yesterday at the company’s annual shareholders’ meeting, where he said he was bullish on EV and energy storage markets.
Even though Delta’s EV business is small compared with overall sales, Hai said he expects rapid growth for EV products.
“Delta is working with major automakers in long-term collaborations,” Hai said. “We can expect future growth, especially if EV prices come down.”
Photo: Ann Wang, Reuters
He also expects Delta’s energy storage business to grow, as Taiwan mandates that heavy industrial users of electricity switch to renewable energy, Hai said.
“As solar and wind power become more important, we are going to need more facilities for energy storage, and providing such storage is also a way for heavy users to meet their renewable energy obligations,” he said.
Delta is already working with state-run Taiwan Power Co (台電) on a storage project on Kinmen.
“We hope that there will be many more,” Hai added.
Because of a nationwide level 3 COVID-19 alert, only three shareholders attended the meeting in person, with the rest watching online.
In response to a shareholder’s question about a components shortage, Hai said that the issue was gradually easing.
“Most of the components shortage involves integrated circuits. After a long period of shortage, the situation seems to be getting a little better,” he said.
Hai also said that Delta was preparing to participate in carbon pricing.
“We have priced carbon at US$300 per tonne internally,” Hai said. “For the time being we will use the money to improve and invest in green power so that we can reach our goal of carbon neutrality as quickly as possible.”
Shareholders yesterday approved the company’s plan to distribute a cash dividend of NT$5.50 per share based on last year’s earnings per share of NT$9.81, which suggested a payout ratio of 56.07 percent.
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
RSS