Win Semiconductors, the leading gallium arsenide (GaAs) foundry, sees signs of recovery after industry downturns. As demand for mobile phones and Wi-Fi power amplifiers stabilizes, growth in optical communications and Wi-Fi 7 is expected to drive a rebound, positioning the company for a stronger market presence.
Win Semiconductors projects first-quarter 2025 capacity utilization to remain steady at 35%, similar to the previous quarter. However, weaker demand for 3D sensing may slightly impact revenue, potentially causing fluctuations in overall shipment volumes.
Nonetheless, as the manufacturing process for mobile-related products is relatively short, growth trends remain evident. While it is still challenging to provide a comprehensive forecast for the entire year, the first quarter is expected to be the lowest point.
Looking at the revenue contribution by product, the largest share in the fourth quarter of 2024 is projected to come from infrastructure at 35-40%, followed by cellular at 25-30%, and Wi-Fi at 10-15%, with others accounting for approximately 21%.
Win Semiconductors observes that there remains significant growth potential in the mobile phone and Wi-Fi markets in the first quarter of 2025. Therefore, considering high-volume products, both sectors are expected to perform well. However, changes in the mobile phone market occur rapidly, and the company will continue to monitor developments closely, sharing updates quarterly.
AI and optical communications expansion
Director Kuo-Hua Chen pointed out that the demand for AI applications in optical communications and data centers is growing significantly, and the supply chain, including Win Semiconductors, is actively positioning itself. Applications such as optical transceivers, silicon photonics (SiPh), and co-packaged optics (CPO) rely on high-performance materials from compound semiconductors.
Additionally, time-of-flight (ToF) technology is expanding from mobile applications to unmanned vehicles, humanoid robots, and LiDAR collision avoidance systems. Compound semiconductors offer comprehensive solutions addressing various wavelength and distance sensing needs.
As a member of Taiwan's Silicon Photonics Industry Alliance, Win Semiconductors is one of the few foundries to possess production technologies for optical communications and optical sensing. Chen noted an increase in optical clients' demand for foundry services, and the company is currently collaborating closely with multiple clients.
General manager of corporate administration, Shun-Ping Chen, stated that indium phosphide (InP) technology remains dominant, while GaAs is primarily used for 3D sensing. Layouts in optical communications and optical sensing will continue to expand in the long term.
Shifting optical revenue composition
In the past, over 90% of Win Semiconductors' optical business revenue came from 3D sensing, but in 2024, optical communications grew to account for 30% of total business, indicating strong development and further growth potential in that sector.
General manager Chen stated that optical communications are still in the early stages of development, and capacity pressure is not yet significant. However, if optical communications, LiDAR, or various 3D sensing applications continue to develop, the company will adjust its capacity to meet market needs.
The development of optical communication technology is more autonomous than other technologies, fostering optimism for future growth. Optical-related revenues are expected to account for approximately 15-16% of total annual revenue, with optical communications already reaching a 30% share, likely to continue increasing.
Meanwhile, new iOS devices from American manufacturers have adopted Wi-Fi 7. The company expects Wi-Fi 7 technology to penetrate Android systems and various application scenarios, including home Wi-Fi routers and infrastructure in enterprises and public spaces. There is optimism for Wi-Fi 7 to experience explosive growth in 2025.
