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Taiwan Passive Component Maker Walsin Expects Flat Performance in 2H20

17.6.2020
Reading Time: 2 mins read
A A

Taiwan-based passive component maker Walsin Technology will be striving to keep its second-half 2020 revenues at least on a par with first-half levels amid volatile market conditions, with order visibility being clear only one month ahead, according to company chairman YH Chiao.

Chiao, speaking at the firm’s recent shareholders meeting, said demand for handset-use passive components will more or less pick up in the third quarter as major vendors will be introducing new models.

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He said shipments for automotive applications in the third quarter may fall 20-30% on year. But as car markets in the US and Europe are beginning to recover slowly in June, third-quarter shipments of auto-use passive components are expected to rise sequentially, though the extent of growth is hard to predict.

Walsin has started small-volume shipments for gaming gears since the start of June, and its shipments for TVs are likely to improve slightly in the third quarter along with the gradual easing of the pandemic after being dented by the postponement of the Tokyo Olympics, according to Chiao

Chiao continued that shipments for notebook and tablet applications in the third quarter may stay flat as compared to the second quarter, but order visibility can hardly be measured on a quarterly basis.

Chiao noted Walsin will continue its production and sales deployments in China as well as Taiwan and Malaysia despite fresh US sanctions against Huawei.

He also stressed Walsin will not take the initiative to seek opportunities for acquisitions, as the company will not rely on acquisitions to support its growth and will strive to serve as a stable supplier of more value-added passive components for clients.

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Source: DigiTimes

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