Power supply and electronic components maker Delta Electronics Co (台達電) yesterday said that revenue this quarter would be higher than last quarter, partly due to fewer working days.
The company’s operations in the first half of the year are also expected to be better than the same period last year, on the back of rising sales of artificial intelligence (AI) related power supplies and electronic components, continued sales growth in power components for automotive electronics, and improvement in power solutions for automation and infrastructure businesses, it said.
Thanks to the production of heat dissipation parts for AI servers powered by Nvidia Corp’s GB200 chips in the second half of the year, coupled with the rising contribution of AI power supplies to total sales, Delta’s overall operations in the second half of the year would be stronger, it added.
Photo: Fang Wei-chieh, Taipei Times
Delta saw AI power supply revenue account for 4 to 5 percent of its total revenue in the first quarter, compared with 3 percent last year, the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) reported on its Web site yesterday, citing Delta chief executive officer Cheng Ping (鄭平).
The company has made progress in the heat dissipation field for AI servers and plans to begin small volume production of some of the new products in the second half of the year, before starting mass production next year, Cheng said.
Delta products include power systems for information technology, automotive devices, telecommunications, industrial applications and medical items.
The rising adoption of electric vehicles (EVs) — led by the clean energy trend — has boosted Delta’s EV power products in the past few years and is likely to continue to support the firm’s growth momentum in the long term, although the growth is tapering off, Cheng said.
However, the company still maintains the view that the EV market would grow by 20 to 30 percent throughout the year, the Liberty Times reported, citing Delta chairman Yancey Hai (海英俊).
Delta on Tuesday posted its lowest profit last quarter in four years, attributing the weakness to higher operating expenses, which accounted for 21.4 percent of total sales in the quarter, compared with 18.5 percent a year earlier.
Earnings per share in the three-month period to March fell to NT$2.22, down 16.54 percent year-on-year and the lowest since the first quarter of 2020, when the number was NT$0.8, the company said in a report.
First-quarter revenue was NT$91.297 billion (US$2.81 billion), down 1.67 percent year-on-year, below market expectations due to lower shipments of power products for consumer electronics, industrial automation and infrastructure projects, it said.
Gross margin was 29.5 percent in the first quarter, up from 27.5 percent a year earlier, but operating margin fell by 0.95 percentage points to 8.1 percent due to higher research-and-development fees as well as selling and administrative expenses, the company said.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS