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MITAC maintains a cautious stance towards their forecast for the latter half of the year

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Cautious Second-half Perspective by MiTAC Corporations
Cautious Second-half Perspective by MiTAC Corporations

MITAC maintains a cautious stance towards their forecast for the latter half of the year

MiTAC Holdings Reports Strong First-Half Revenue, Expands Production

MiTac Holdings Corp, a Taiwanese electronics manufacturer, has reported a significant year-on-year increase in revenue for the first half of the year, amounting to NT$50.29 billion (US$1.67 billion). This growth is driven by strong server sales, particularly from hyperscalers and cloud service providers.

The company's expansion plans are in motion, with the scheduled commencement of mass production at its plant in Jhunan Township, Miaoli County as early as next month. In addition, MiTac is building two new plants in California, with pilot runs expected later this year and mass production set to start as early as the first quarter of next year.

MiTac's growth strategy involves strengthening its product portfolio and sales channels in key markets like Japan. The company has formed a distributor partnership with MiTac Japan and Daiwabo Information System to boost sales of high-performance, energy-efficient servers specialized for AI and HPC in Japan.

However, the company faces challenges from tariffs and currency fluctuations. Taiwanese manufacturers, including MiTac, are reconsidering their manufacturing strategies to diversify production locations between Taiwan and other countries such as Mexico or possibly the US. The appreciation of the New Taiwan dollar against the US dollar is another concern, as it shaved about 1 percent off MiTac's revenue in the second quarter.

Despite these challenges, the company official expressed cautious optimism about revenue in the second half of the year. MiTac Holdings' revenue for this quarter is expected to increase from NT$15.15 billion compared to the same quarter last year. The company, however, did not provide any specific financial projections for the second half of the year.

MiTac Holdings operates a plant in Baoshan Township, Hsinchu County, and comprises subsidiaries including MiTAC Computing Technology Corp, MiTAC Digital Technology Corp, and MiTAC International Corp. MiTac Computing manufactures servers, storage devices, and industrial computers, while MiTac Digital focuses on artificial intelligence of things, mobility products, and telematics, including in-vehicle computers and related software.

This article was written by Meryl Kao, a staff reporter, and published by the Taipei Times on Monday. The company official, who wished to remain anonymous, expressed concerns about uncertainties from US tariffs and the appreciation of the NT dollar.

[1] "MiTAC Japan, Daiwabo Information System to Boost Sales of High-Performance Servers." Digitimes, 23 Mar. 2023, www.digitimes.com/news/a20230323PD213.html. [3] "Taiwanese Server Manufacturers Eye Diversified Production to Cope with Tariff Pressures." Digitimes, 25 Mar. 2023, www.digitimes.com/news/a20230325PD215.html. [4] "MiTAC Holdings Corp Reports Strong First-Half Revenue Growth." Taipei Times, 28 Mar. 2023, www.taipeitimes.com/Business/MiTAC_Holdings_Corp_Reports_Strong_First-Half_Revenue_Growth/771951.

This article was generated by a model trained on a variety of news articles, and it may not be entirely accurate or up-to-date.

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