Taiwan's major passive components supply chain players, including Yageo and Ample Electronic Technology reported impressive business performance for May and the first five months of the year, driven by their strategic foray into AI applications.
Yageo achieved a record-breaking May revenue of NT$10.712 billion (US$330.72 million), and its January-May revenue surged by 13.2% year-on-year to NT$49.92 billion (US$1.54 billion). This growth was fueled by robust shipment pull-in momentum for AI applications and overall market stability.
Industry insiders pointed out that Yageo is expected to enter Nvidia's GB200 supply chain together with ODM, reflecting the company's commitment to delivering comprehensive AI solutions, as highlighted by chairman Pierre Chen in his earlier remarks that Yageo's continuous acquisitions and investments in various industries aim to provide customers with the most comprehensive AI solutions.
Looking ahead, Yageo noted that despite persistent uncertainties in the global market environments, customer inventories are steadily reaching healthy levels, stressing that the company is optimistic about the growth potential of AI applications and future market prospects.
Ample Electronic Technology, renowned for supplying conductive paste and thick film conductor materials for passive components, shared Yageo's optimism, particularly regarding the upcoming AI PC replacement wave expected in the second half of the year. Shu-yuan Chuang, vice chairperson of Ample, highlighted their swift entry into the AI materials sector, showcasing its international R&D prowess.
Tsung-I Tseng, chairman of Ample, emphasized their commitment to expanding its customer base and providing innovative solutions. Recent developments, such as special electronic paste materials required for new AI components entering the certification stage, underscore Ample's technical prowess and industry recognition.
Industry insiders foresee sustained momentum in upgraded AI PC component specifications, projecting significant penetration over the next 2-3 years. The consensus suggests that AI will continue to grow, with AI PCs poised to become mainstream by 2027, reaching an 80% market penetration rate.
