All data are based on the daily closing price as of May 23, 2024

Inventec Embarks on AI Transformation, Targets Automotive Electronics Growth

Chairman Ye Li-cheng Announces 2024 as Key Year for AI, Aims for 100 Billion Yuan in Automotive Business by 2027
Taiwan
i 2356.TW Mid and Small Cap 2000
Share this on

Inventec, a major foundry manufacturer, has declared 2024 as the inaugural year of its AI transformation. This announcement was made by Chairman Ye Li-cheng at the group’s annual meeting held at the Nangang Exhibition Hall. The company is poised for a prosperous future, aiming to create greater achievements in the coming years. Inventec Automotive, in particular, is set for significant yearly growth, targeting a revenue milestone of 100 billion yuan by 2027. The company’s IP business is also gearing up to supply the market upstream, focusing on technologies such as edge computing AI, 5G, 6G, and low-orbit satellites.

In the automotive market, Inventec has strategically positioned itself as a “Tier 1.5 supplier”, mainly catering to Tier 1 suppliers of traditional Japanese car manufacturers. The company’s focus is on the back-end assembly market, specializing in in-vehicle infotainment systems and assisting customers in software design. Moreover, some new electric vehicle manufacturers are bypassing traditional supplier channels and directly approaching Inventec for original design and manufacturing (ODM) services related to automotive components. The group is collaborating with chip factories to develop advanced assisted driving systems (ADAS).

Ye Li-cheng compares the current phase of Inventec’s automotive electronics business to the initial stages previously experienced by the laptop and consumer electronics sectors. He anticipates quick success this year, as each regional production site will have dedicated units managing orders and shipments to customers. With the new IP business still in its infancy, Inventec plans to collaborate with IC design customers to develop and market new products jointly.

On the employee welfare front, Ye Li-cheng emphasized Inventec’s commitment to its workforce. The company ensures a minimum year-end bonus of 2 months’ salary, with additional incentives for high-performing employees. Salary increments are also under continual review, with the company keen on aligning them with market conditions and peer comparisons. Inventec aims to reward its efficient employees adequately.

This strategic pivot towards AI and automotive electronics signals Inventec’s ambitious drive to adapt to changing market dynamics and technological advancements. The company’s focus on AI transformation and automotive electronics signifies a substantial shift in its business strategy, aligning with global trends towards smarter and more connected technologies.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top