Wah Lee Industrial Corp. (3010.TT) announced July 2020 unaudited consolidated sales of NT$5,216M, a growth of 10.73% from last year, MoM growth of 3.25%. The cumulative Jan.-Jul. consolidated sales reached NT$32,405M, a growth of 5.15% from the same period last year.
Wah Lee is like the “aircraft carrier” in the raw material industry and has a comprehensive product portfolio in semiconductor, optoelectronics, ICT, and PCB industries. Wah Lee’s semi materials cater to Taiwanese semi manufacturer’s advanced nodes and volume grew quarter by quarter, PCB high frequency materials benefited from Taiwanese system integrator’s high end server orders, and high end engineering plastics penetrated into high frequency connectors, etc.
Taiwanese semi manufacturers’ advanced nodes are leading in the world, plus that the corona virus has been pretty much contained around the island, huge amounts of orders for high end processed IC chips surged into Taiwan in the 1H. Recent news revealed that Intel had planned to outsource its 7nm products to Taiwan fabs, AMD simultaneously placed orders for advanced process IC to Taiwan semiconductor makers. Both have benefited the whole semiconductor supply chain in Taiwan.
The COVID-19 pandemic has not impacted the semi industry significantly. On the contrary, it increased the demands for remote working and on-line education. These pushed up the demands for High Performance Computing (HPC) chips such as high end CPUs, server ICs, and AI accelerators. 5G is another area of growth. Governments worldwide are pushing up the infrastructure for 5G networks. This year will be the first year of major launches of 5G smartphones. According to research institutes, the market for 5G base stations will grow at a CAGR of 50% till year 2025. 5G smartphone shipment will reach over 200 million sets in 2020.
Wah Lee’s major semi customer has been in full capacities for its advanced processes because of the drives from 5G, AI, and HPC and has order visibility till next year. This in turn drives the sales of Wah Lee’s photoresist, CMP slurry, electronic grade chemicals, and specialty gases. Related sales have grown by double digits. Wah Lee has partnered with Japanese suppliers for more than 30 years and has participated in the evolution of Taiwan semi industry from 20nm to 5nm. The company will continue to provide high end materials for customers’ continuous drive into higher end nodes.
Looking forward into the future, as the peak seasons for 5G phones and AI grade servers are coming, and demands for IOT, automatic driving networks, and smart cities are about to skyrocket, Wah Lee’s semiconductor sales will take a great stride and continue to grow substantially.