Sercomm Corp (中磊) saw its shares rally 1.97 percent yesterday after the broadband equipment supplier gave an upbeat business outlook for next year, expecting robust demand for Internet-connected devices from 5G and Wi-Fi-related devices to fiber-optic products to drive revenue growth.
The Taipei-based company is one of only a few among local electronics firms that expects growth in the post-COVD-19 era, as Internet connection has become indispensable despite the world economy facing greater downside risks due to surging inflation and intensifying geopolitical tensions.
The stock price of Sercomm surged 1.97 percent to the highest level in more than one month at NT$82.7, outperforming the TAIEX, which edged lower 0.04 percent yesterday.
Photo: CNA
“We are looking at healthy and stable growth next year,” company president Ben Lin (林斌) told reporters on Thursday. “Although the overall market demand is in decline, we have developed the right products catering to customers’ demand from certain growing segments.”
The constant technology migration to higher-speed Internet connections through 5G and Wi-Fi-6 technology offers growth opportunities, Sercomm said.
The world’s major economies are injecting massive funds into infrastructure construction including fiber-optic networks to stimulate the economy, which would provide a boon to Sercomm, the company said.
Aside from existing product lines, Sercomm expects to see rapid growth in new demand for television set-top boxes from telecom operators. Sercomm generates about 80 percent of its revenue from supplying broadband devices to telecom operators around the world.
Sercomm has a long order visibility for the next 12 months, but the company is cautiously handling customers’ orders and building chip inventory, as mounting uncertainty about external factors — geopolitical conflict in particular — could cripple demand.
Telecom operators from the EU have axed orders since the second and third quarters, as the economic block has been severely hit by soaring inflation and high energy prices.
However, consistent growth from other areas such as India and Japan have helped offset the losses, Sercomm chairman James Wang (王煒) told reporters on Thursday.
To minimize any impact from geopolitical conflicts, Sercomm has diversified its manufacturing site to the Philippines and is developing a new manufacturing facility in India, the company said.
By next year, the Philippine factory capacity would surpass the company’s factory in China, Wang said.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
RSS