Taiwan's Delta Electronics sees EVs powering its double-digit growth

Delta Electronics

23/02/2023 09:04

By Ben Blanchard and Sarah Wu
       TAIPEI, Feb 23 (Reuters) - Taiwan's Delta Electronics
Inc  2308.TW , a supplier of power components to companies such
as Tesla Inc  TSLA.O , sees "at least" double-digit annual
growth for the next five years driven by the electric vehicle
(EV) boom, it said on Thursday.
    Chairman Yancey Hai, in bullish comments on a fourth-quarter
earnings call, said the company was benefiting from the shift
away from traditional gasoline-powered vehicles to EVs. 
    "On average the company will grow at a double-digit rate for
the next few years. If you say the mid-term is three to five
years, I think our goal is to grow at least double digits for
the next five years," he said.
    Components like fans, which had previously mostly gone into
goods like personal computers, are now increasingly going into
EVs instead, Hai added, after the company reported its
fourth-quarter gross profit leapt 32% year-on-year to T$29.6
billion  ($974.55 million).
    "So EVs are going to be one of the biggest drivers, and also
data centres," he said, pointing to the "huge" centres companies
such as Meta Platforms  META.O  and Microsoft Corp  MSFT.O  are
building.
    Tesla said last week it will open part of its U.S. charging
network to EVs made by rivals as part of a $7.5 billion federal
programme to expand the use of EVs and cut carbon emissions. 
    Hai said that while the supply chain situation for Delta and
car factories had improved a lot - the auto industry was
particularly hard hit by COVID-related turmoil in China and a
global chip shortage - there are still some chips such as
microcontrollers facing minor shortages. 
    Delta, whose shareholders include Singapore's government,
makes devices that control the flow of electricity in a range of
products such as smartphones, personal computers, servers and
electric vehicle charging stations.
    Delta's shares have risen 1.2% so far this year, giving it a
market value of $24.68 billion. They closed flat on Thursday,
versus a 1.3% gain in the broader market  .TWII .
($1 = 30.3730 Taiwan dollars)
 (Reporting by Ben Blanchard and Sarah Wu; Editing by
Muralikumar Anantharaman)
 ((ben.blanchard@thomsonreuters.com;))