Wah Lee Industrial Corp. (3010.TT) announced November 2020 unaudited consolidated sales of NT$5,436M, a growth of 8.1% MoM and 16% from last year, setting 2nd highest sales record. Cumulative January to November consolidated sales reached NT$53,815M, a growth of 7.7% from the same period of last year, setting record high of the same period.
WSTS estimates that the memory market will grow 12.2% this year and will grow again by 13.3% in 2021. It will be the highest growth segment of the semi industry for two consecutive years. On the other hands, LCD industry is going into a healthy trend with Korean players exiting the market and China government subsidy reducing, the supply side is improving. Plus that the home economics are stimulating the demands for NB and PC, LCD panels are in full capacity and there’s a shortage for all sorts of IC ships. LCD industry looks optimistic into next year. Recently, many major Taiwanese technology manufacturers announced the increased buying of green energy. Over half of the newly increased solar power generation capacities have been booked. Wah Lee has advanced deployment in semiconductor, flat panel display, and green energy and will ride on the booming market condition to speed up the sales increase.
After the 2020 US Election, the Sino-American trade conflicts will remain. In the post-pandemic era, Taiwan semicon industry will continue to benefit from the order transferal effects. Plus that the increasing applications of 5G, AI, AIoT, and EV and the limited growth of foundry capacities, the supply of advanced and legacy processes is still tight. Customers have to book the capacities in advance to secure their supplies. Wah Lee has been the aircraft-carrier of advanced materials and has participated in every traditional and advanced semi manufacturing processes. This will bring strong growth momentum for Wah Lee’s photoresist, PR stripper, specialty gases, CMP slurry, and spare parts. Wah Lee’s semi sales has grown by double digits in this year.
DRAM industry has also started to grow recently. Despite the shipment of smartphone so far is not as good as expected, the launch of 5G iPhones has raised the estimation of 5G smartphones shipment next year, estimated to reach 2~2.5 times of this year. With the stimulation of double shipment volume of 5G smartphones, memory market will resume growth. Additionally, after the gradual recovery of economies with the vaccine availability, the demand for high end smartphones will become stronger. Cloud servers, data centers, and automobile electronics will further push up the usage of memory. Wah Lee’s major customers in the memory market will have strong demands for photoresist, developer, wet process chemicals, and electronics grade specialty gases and will help Wah Lee’s sales grow.
Taiwan’s green energy industry will be prosperous before the government’s target of year 2025. After the purchase of green energy by the leading foundry company, other tech companies will also follow suit. Wah Lee acts in echo of government’s green policy and world trend of carbon reduction and deploys resources in solar power generation, ESS (Energy Storage System), and wind power. As one of the founding shareholders of Tien Li Offshore Wind Power, Wah Lee has already signed raw material supply agreement with Tien Li in May this year and will play its best part in contributing to the sustainability of the world environment.