Wah Lee Industrial Corp. (3010.TT) announced its December 2021 consolidated sales of NT$6.091 billion, a growth of 15.68% over the same period last year. FY 2021 consolidated sales reached NT$70.515 billion, a growth of 19.35% YoY, setting a record high annual sales.
Despite the pandemic and the uncertainties in raw material shortage and interruptions in logistics, Wah Lee’s sales still flew high. Driven by the strong demands from 5G, AI, HPC, EV, etc, Wah Lee’s advanced semiconductor raw materials, 5G high frequency substrates, and high resolution dry film for IC substrate makers, high end engineering plastics for 3C products, and FPD raw materials and ICs all had strong shipments.
According to research institutes, Cloud Service Providers (CSP) will maintain double digit growth this year. CSPs such as Google, Meta, Microsoft, and Amazon continue to expand their Capex plans and drive the demands for high end servers. Together with the launches of new technology platforms by Intel and AMD for high end servers, this will lead to a big wave of replacement demands.
Taiwan is known for its expertise in server manufacturing. Major CSPs have greater demands for tailor made servers and aim for cost reduction, therefore Taiwan ODM makers are very likely to benefit from this trend.
Wah Lee has been providing 5G high frequency substrates CCL (Copper Clad Laminate) and has penetrated into the data center servers. The company will also participate the materials development for the new generation cloud servers. It has been reported that Wah Lee’s CCL has been spec’ed-in for the two leading server makers’ new technology platforms. As the layers of PCB increase and the driver from the replacement demand, the high frequency substrate CCL will be stably growing.
The new DDR5 will be applied in the new server platform using SMT technology to be mounted onto the motherboard. The sockets for the DDR5 DRAM IC chips will be utilizing Wah Lee’s high temperature resistant Nylon. The chip holders of LED for Car lighting device and high speed connectors will also use Nylon. Wah Lee’s engineering plastics have been qualified for automobile uses and will contribute steady sales for the future.