Power management IC (PMIC) designer Silergy still sees tight production capacity while anticipating increasing demand, with order visibility extending more than a year, according to company chairman Chen Wei.
In response to increasing demand, Silergy will continue raising production utilization and expanding capacity, said Chen.
In the second half of the year, the company will start running additional capacity and increasing the proportion of automotive and server products shipments.
For the first quarter this year, Silergy reported NT$6 billion (US$203.3 million) in revenue with a 2.17% sequential decline and 44% on-year jump. Profit margin remained flat at 53.56%, compared to the previous quarter.
In the same quarter, Silergy's net profits reached NT$1.58 billion with a 59% rise from the previous year and a 14.3% sequential increase.
Silergy's goal to reach 20-30% revenue growth every year remains, citing strong demand in the future.
Demand for automotive and server ICs remains hot
The company sees low level of inventory as demand remains hot, said Chen, expecting demand to remain high throughout 2022.
Silergy remains unaffected by the lockdown in Shanghai, which is not the major location of its production.
Shipments of automotive and server products were little affected by the lockdowns in China or war in Ukraine, and clients' production are not in the affected areas and terminal demand remains strong.
Silergy projects that automotive products shipments could rise to 3% of total shipments and server to 2-3% thanks to strong demand for EV and data center in China and North America.
By 2023, Silergy aims to have 10% of total revenue come from automotive products and to increase the combined value of its automotive products for one vehicle to US$200 from US$15-20 now. Its automotive products range from smart cockpit semiconductors, power supply semiconductors, and semiconductors in battery modules.