Contract electronics maker Wistron Corp (緯創) is planning to expand production in Taiwan and Mexico this year as part of its global expansion.
The company expects to spend NT$16 billion (US$562.27 million) in capital expenditure this year, largely to be spent in Taiwan and Mexico, Wistron chairman Simon Lin (林憲銘) said at an investors’ conference on Wednesday.
Wistron’s global expansion plan is intended to reduce risks amid growing geopolitical tensions, Lin said.
Photo: CNA
Moreover, production diversification should allow the company to locate is facilities closer to international customers, he added.
In addition to Taiwan and Mexico, Wistron is considering investments in Vietnam later this year as part of its Southeast Asian development plans, Lin said.
China accounts for between 50 percent and 60 percent of Wistron’s production capacity, but that share is expected to fall as investment in Taiwan, Mexico and Vietnam rises, he said.
Capital expenditures for this year would also be put toward developing value-added products such as automotive electronics, servers and artificial intelligence devices, Lin said.
To meet funding demands, Wistron is selling up to 250 million shares in Taiwan or as global depositary receipts overseas.
Wistron on Wednesday said that net profit last year rose 20.6 percent year-on-year to NT$10.47 billion, or earnings per share of NT$3.76, while its consolidated sales totaled NT$862.08 billion, up 2 percent from a year earlier.
With the strong earnings, Wistron has proposed to issue a NT$2.2 cash dividend per share, suggesting a payout ratio of 58.51 percent.
Based on the closing price of Wistron shares at NT$29.6 yesterday, the dividend yield would be 7.43 percent.
Wistron president Jeff Lin (林建勳) said that the impact from a shortage of raw materials for notebook computer production had been eased to some extent from the previous year.
The company is to place a greater emphasis on commercial personal computers this year, with the expectation that shipments should rise 40 percent from last year, he said.
Separately, PC vendor Acer Inc (宏碁) on Wednesday said that its net profit last year was NT$10.897 billion, an 11-year high.
The 81 percent year-on-year increase was part of a rise in earnings per share to NT$3.63, compared with NT$2.01 in 2020, Acer said.
Consolidated sales totaled NT$319.01 billion, up 15.1 percent from 2020, with gross margin improving to 11.7 percent and net margin standing at 4.4 percent, the highest in the company’s history.
Given its strong showing last year, the company has proposed issuing a NT$2.28 cash dividend per share, representing a payout ratio of 62.81 percent.
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