Taiwan-Asia Semiconductor has disclosed its first-quarter financial results for 2024, marking a 15% year-over-year increase in consolidated revenue to NT$957 million. Despite this growth, the company reported a net loss after taxes of NT$38 million, translating to a loss of NT$0.08 per share.
The company attributes the revenue increase to a recovering market and purchasing power, but its bottom line was impacted by significant investments in new product development and the transformation of its business model. Specifically, Taiwan-Asia has funneled nearly NT$3.5 billion into the research and development and manufacturing of advanced silicon and gallium nitride power components through its subsidiaries, ProAsia Semiconductor Corporation and Star Asia Vision Corporation. This investment covers both hardware and software facilities, including expenditures on AI smart automation.
While these investments have resulted in increased operational costs and higher depreciation and amortization charges, impacting short-term profitability, Taiwan-Asia Semiconductor views these steps as crucial for enhancing its competitive edge in the market. This year is particularly pivotal for Taiwan-Asia as it commences its transition into new technology domains, anticipating a surge in market demand for its power components.
Looking forward, Taiwan-Asia is planning a three-year expansion of its manufacturing capabilities, beginning with a proposal to acquire four hectares of land from the Zhuke Management Bureau in Tongluo for a new factory. This expansion is aimed at bolstering the company’s capacity to meet the anticipated demand in sectors such as green energy, electric vehicles, and data centers, with production expected to start in 2026.
