In September, Meta Platforms CEO Mark Zuckerberg introduced Orion, a highly anticipated prototype of augmented reality (AR) glasses, during a private event. Marketed as a potential smartphone replacement, Orion signifies a pivotal step in Meta's pursuit of next-generation computing technologies.
Shuang Bang Industrial, a specialized maker of synthetic resins and functional fabrics in Taiwan, is optimistic about its 2025 performance. As global inventory levels continue to normalize, the company is benefiting from the burgeoning AI electronics market, which has already extended order visibility into the first quarter of 2025. This segment is contributing approximately 15% of total revenue, according to general manager Rita Hsu.
Nvidia is poised to begin mass production of its GB200 super chip, with founder and CEO Jensen Huang announcing that the supply outlook exceeds expectations and shipments will proceed according to plan. This development promises to not only boost shipments for server ODMs like Quanta Computer and Hon Hai Precision Industry (Foxconn) but also usher in a significant growth phase for component suppliers.
SSD sales have been buoyed by specifications upgrades, according to industry sources, while DRAM module sales have exhibited signs of weakness. In 2024, they predict that SSD sales will surpass those of DRAM modules.
AI was the name of the game for the semiconductor supply chain in 2024, according to IC distributor WPG Holdings, yet shifting supply-demand balance may lead to slightly slower growth in the semiconductor market next year. In the automotive market, as carmakers gradually end inventory adjustments, WPG is seeing initial results from its investments into integrated automotive solutions, as it targets Japanese Tier 1 suppliers.
India, once the world's fastest-growing wearable market, saw a substantial fall in shipments for two quarters in a row as vendors reduced product launches and maintained cautious inventory policies.
Recently, Meta unveiled its new augmented reality (AR) glasses prototype, Orion, alongside the smart glasses, Ray-Ban Meta, which was developed in collaboration with Ray-Ban. This announcement is expected to reignite interest in the metaverse and AR/VR technologies.
Following a five-year hiatus, Hiwin resumed its in-person earnings call, providing an updated outlook for 2025. The company expects increased economic clarity post-US presidential election, projecting strong growth momentum in the US market. End markets such as semiconductors, aerospace, and infrastructure are expected to perform favorably, while the automotive sector is anticipated to remain comparatively soft.
Kaori Heat Treatment Co. approved the formation of a wholly-owned subsidiary focused on thermal solutions at an extraordinary shareholders' meeting on November 12, transferring its thermal energy division to the new entity, Kaori Thermal Technology. The restructuring aims to enhance operational efficiency and strengthen the group's positioning in the growing artificial intelligence infrastructure market.
Acer subsidiary AOpen achieved its highest profits in 22 years during the third quarter of 2024. The company attributes this growth to long-term efforts in various markets and customer relationships, which have stabilized following the pandemic. There has also been a noticeable increase in shipments for certain projects in Europe and the US in the second half of the year.
Sixxon Tech, a specialized supplier of precision metal parts, anticipates robust growth in thermal management, semiconductor, and optical communication sectors in 2025. The company aims to reduce its reliance on automotive components as it focuses on new markets.
Taiwan's leading precision metal stamping specialist, G-Shank Enterprise, reported that revenue from non-3C applications—such as automotive, medical, and industrial sectors—grew to 56% in the first three quarters of 2024. This diversification fueled both revenue and profit growth for the company, while AI-related applications will serve as the primary growth driver in 2025, according to President Ying-Shou Lin.
With Nvidia planning GB300 after GB200, scheduled for launch in the first quarter of 2025, industry sources believe liquid cooling demand is poised to surge in 2025.
The highly anticipated Nvidia RTX 50 series display cards are set to launch, with suppliers optimistic about its market impact. A key display card cooling supplier, Auras Technology, is gearing up for increased demand. Yu-Shen Lin, chairman of Auras, noted that the RTX 50 series could become the most popular display cards ever and may seize the whole market starting in December.
Semiconductor testing interface leader WinWay has achieved record-breaking performance, driven by robust demand for AI, HPC applications, and AI smartphones. The company's AI and HPC product lines have experienced significant growth, pushing its third-quarter revenue to an unprecedented high, with both revenue and profit for the first three quarters setting new records.
Taiwanese hinge and precision components provider Jarllytech reported that its revenue performance in October remained flat, with a slight month-over-month decline primarily due to the postponement of mass production for new foldable devices from Chinese clients until late October, which resulted in lower-than-expected shipments for the company's mobile product line this month.
Automotive supply chain players are increasingly branching out into non-automotive sectors, notably semiconductors, with companies like Global PMX and TsangYow at the forefront.
Recently reports have emerged that the Biden administration has proposed a controversial plan to bolster Intel by merging its chip design division with AMD's corresponding departments. While both companies have established collaborative foundations, this speculation appears worrisome from both the market and technical perspectives.
Semiconductor Week in Review (Nov 3 - 9): The semiconductor industry faces a transformative moment as TSMC readies its Arizona fab's politically-charged December opening and Intel's covert Taiwan visit reveals its deepening dependence on TSMC's advanced nodes.
Benefiting from the continuous increase in market penetration of LED backlit keyboard modules, electronic components manufacturer Chicony Electronics reported continued revenue growth in the third quarter of 2024. Although the product mix slightly impacted the gross margin, which declined marginally compared to the previous quarter, it remained above 20%.
Global supply chains are transforming from lengthy, interconnected networks to shorter, regionalized structures, driven by the prolonged US-China trade and tech conflicts and pandemic disruptions. While this transition has placed substantial pressure on small and medium-sized suppliers, they are finding ways to adapt.
Taiwan-based Eikei, a specialist in non-OEM PCBs, is poised for substantial growth in both revenue and profit in 2025, driven by increasing demand for PCBs in automotive, AI, and power supply applications, according to Chairman Corey Liu.
Optical film manufacturer Wah Hong Industrial Corp has reported that its cumulative pre-tax net profit for the third quarter of 2024 reached NT$410 million (approx. US$12.7 million), marking a significant year-over-year growth rate of 70.3% compared to NT$240 million in the same period of 2023.
Huawei's HarmonyOS is encountering significant hurdles in its path to successful commercialization. However, since its launch, Huawei has integrated the digital yuan into HarmonyOS, reflecting a departure from traditional commercialization strategies.
