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  • 2020.05

    • HPC & 5G equipment bring huge demands for ICs and Wah Lee’s semi materials continue to grow

    Wah Lee Industrial Corp. (3010.TT) announced April 2020 unaudited consolidated sales of NT$5,271M, a growth of 18.1% from last year, MoM growth of 8.7%, setting record high monthly sales.  The cumulative Jan.-Apr. consolidated sales reached NT$17,624M, a growth of 6.6% from the same period last year, also reaching record high cumulative sales so far.

     

    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.  It is also cultivating in the 5G, biomedical, EV, and ESS sectors in recent years.  It is expected to continue its stable sales growth.

     

    The COVID-19 pandemic accidentally promoted the environment for work-from-home and on-line education.  These trends have pushed the demands for high-end CPUs, server chips, and AI accelerators.  Many countries tried to stimulate their economies by widely deploying the 5G network.  The US-based smartphone maker launched their low-priced model to expand their market shares.  All these have brought up the demands for Wah Lee’s semiconductor specialty chemicals, electronic-grade gases, and components and spare parts and showed significant growth.

     

    China was originally seriously impacted by the disease and its semiconductor industry was affected during February when the country was locked down.  In March, the factories returned to production and the overall 1st quarter production utilization was in line with expectation.  Coming into 2nd quarter, the demands for raw materials become increasingly strong.  Wah Lee’s April semicon sales was much better than the same period of last year.  It’s expected that the Chinese government will push for more infrastructure and 5G construction must be on the top list.  Raw materials for the semicon will be in high demands.

     

    Consumer electronics are easily affected by the economic situations. High performance computing (HPC) and 5G network equipment are in place to fill the space left by consumer electronics.  If the pandemic situation is gradually relieved by June in the US and EU, smartphones will pick up in the sales and we can all look for a traditional better season of electronics sales in the 2nd half.  The institutional investors are optimistic about the growth opportunities of Wah Lee’s related raw material sales.