Chunghwa Telecom, Taiwan’s leading telecommunications provider, announced its plans to further expand its international reach by establishing a subsidiary in Germany during the first half of 2024. This strategic move marks a significant step in the company’s global business development and highlights its focus on the European market, where it sees potential growth in ICT demand.
Chairman Guo Shuiyi and General Manager Lin Zhaoyang led a press conference revealing these expansion plans. The company, already enjoying a strong international presence, continues to ride on its recent successes. It notably supported TSMC, Taiwan Semiconductor Manufacturing Company, in building network infrastructure for new factories in the United States and Japan. Speculations are rife that Chunghwa Telecom’s German venture aligns with TSMC’s own plans to establish a factory in Germany, potentially leading to more substantial orders for Chunghwa.
In 2023, Chunghwa Telecom’s performance hit a six-year high, with revenues and earnings per share growing for the fourth consecutive year. Dominating Taiwan’s telecom market, Chunghwa Telecom accounted for 60% of the market value. As of November 2023, the company led in revenue market share and customer numbers, holding 40.2% and 37.1%, respectively. Additionally, its 5G customer base surpassed 3 million, the largest in Taiwan, with mobile service revenues growing steadily for 33 consecutive months.
Lin Zhaoyang highlighted the positive annual revenue growth across all three business segments in the last quarter of the previous year. International roaming revenue soared past pre-pandemic levels, and the enterprise customer business group saw overall revenue growth driven by the information communications and mobile businesses. The information security business witnessed a consistent increase in revenue for eight consecutive quarters.
In anticipation of higher costs in 2024 due to significant growth in the international business group and ongoing IDC investments, Chunghwa Telecom remains optimistic about the prospects of AIoT, 5G applications, and AI solutions. The company aims to leverage its ICT technology to capture market opportunities and enhance profitability, expecting synchronized growth in both revenue and profit in the ICT business this year.
