Taiwan’s 19 IT companies saw a 17% increase in revenue in May

The total sales of 19 major Taiwanese companies that supply semiconductors and digital products to global IT giants increased by 17.7% year-on-year in May. The performance of artificial intelligence (AI)-related companies, centered on electronic manufacturing service (EMS) manufacturers such as Hon Hai Precision Industry, continued to be strong, achieving growth for three consecutive months.

The Nihon Keizai Shimbun surveyed the sales of 19 major Taiwanese IT-related companies and found that the total sales in May were NT$1.315 trillion. This is the second double-digit growth after April (up 19.4%).

Hon Hai, the largest foundry company, saw its sales increase by 22.1%, and is outsourcing the production of AI servers for companies such as Nvidia in the United States. In addition, the launch of new iPad products by Apple, a major customer, also played a certain role in driving the market. Quanta Computer, which specializes in the production of AI servers, also increased its revenue by 31.5%.

Pegatron Corporation, which mainly manufactures Apple iPhones, saw its revenue increase by 2.7%, while Compal Computer Industries, which mainly manufactures personal computers, saw its revenue decrease by 7.2%. The two companies were accused of entering the field of AI server production relatively late and are stepping up their investment in products.

AI demand has also affected companies other than foundry. Delta Electronics, a manufacturer of electronic equipment such as power supplies, received many server-related orders and saw its sales increase by 2.6%.

Sales of TSMC, the world’s largest semiconductor foundry, increased by 30.1%. Sales of cutting-edge semiconductors to Nvidia and others were strong, with sales hitting a record high in May. United Microelectronics Corporation (UMC), also a large company that produces mature products, saw its revenue increase by 3.9%.

In the field of semiconductor packaging and testing, ASE, the world’s largest company, saw its revenue increase by 2.7%, while MediaTek, a semiconductor development and design company, saw its revenue increase by 33.5%. It continued to rebound after hitting bottom in 2023.

Source: Nikkei