Accton Technology expand new capacity in Taiwan due to the trade war

Accton Technology expand new capacity in Taiwan due to the trade war.
Accton Technology expand new capacity in Taiwan due to the trade war.

Accton Technology (2345-TW) held a shareholders meeting today on June 13. The general manager C.C. Lee (李志強) pointed out that the revenue/earnings in 2H19 may stay flat HoH. However, since the comparison base is higher in FY18, its 2H19 revenue growth magnitude may not be as much as it was in last year. But, its FY19 revenue may still grow in double-digits. On the other hand, the company may continue to expand new capacity in Taiwan next year and the proportion is expected to reach 50%.

Lee told that the growth momentum in 2H19 may derive from the demand for data center, enterprise network and telecom equipment. Among them, the demands of internal network and accelerators in data center are expected to persist into next 2-3 years. Moreover, as the application increase, and long-term demand may return.

Regarding its FY19 GM , Lee said that FY18 was the "most painful year" to the company, but since the shortage and the price increase of MLCC and memory chip are eased, only some special products remain in short supply, and the situation has eased compare to last year.


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