Category: Financial Performance

Generative AI (GenAI) to accelerate long-term demand growth in the semiconductor market

In 2024, the global semiconductor industry continues to face headwinds from a weak macroeconomic environment, high inflation, and elevated interest rates. Despite these challenges, WT has demonstrated strong resilience by capitalizing on the surge in semiconductor demand driven by GenAI, leading to significant revenue growth. Looking ahead, amid global economic uncertainties due to geopolitical tensions, the rapid advancement of GenAI technologies, and ongoing transformations in the electronics supply chain, WT will leverage its integration with Future Electronics to further strengthen its global footprint in the electronic components market. With the goal of continuously expanding market share and improving profitability, WT will also enhance operational management systems and risk controls to boost efficiency. By deepening its ability to deliver added value across the electronic components supply chain, WT aims to build a sustainable operating foundation.

Revenue percentage of sustainable economic activities increased by 2.64 percentage points

WT systematically manages the environmental impact and application areas of its product portfolio, with a focus on supporting customer transitions to sustainable product design. Through targeted services and technical support, the company enables customers to integrate energy-efficient and low-carbon solutions across diverse application markets. In alignment with the Sustainable Economic Activities Recognition Reference Guidelines (Version 2), published by Taiwan's Financial Supervisory Commission on December 31, 2024, WT assessed its existing product applications to identify those that qualify as sustainable economic activities. These include solutions in low-carbon transportation, high-efficiency industrial equipment, and renewable energy infrastructure. In 2024, revenue derived from sustainable economic activities accounted for 14.07% of total revenue – an increase of 2.64 percentage points from 2023. These categories reflect not only compliance with regulatory expectations but also alignment with global sustainability trends. Looking ahead, WT is committed to further investment in clean technologies and low-carbon solutions. The company has set a target to increase the share of revenue from sustainable economic activities to 20% by 2030, supporting its long-term ESG strategy and enhancing its contribution to global decarbonization efforts.

Optimistic outlook for long-term semiconductor market demand

2023 was a challenging year for the global semiconductor industry. The weak overall global economic environment, high inflation and high interest rates have intensified and extended the global semiconductor inventory adjustment cycle. Despite the challenges posed by the macro environment, the Company has demonstrated strong resilience. Facing the uncertainty of global economic recovery in the post-pandemic era, the rapid development of AI technology, the changes in the electronic product supply chain, and the increasing demand for energy conservation and carbon reduction brought about by climate change, the market demand and growth potential is expected to remain strong for the semiconductor sector in the long term. WT will continue to focus on high-growth products and applications such as third-generation semiconductors, electric vehicles, industrial control, energy management, green energy, cloud data centers, 5G communications, etc, as the rapid development of these application fields requires the supply of semiconductor components. To strengthen the foundation for sustainable business operations, WT will continuously improve its operational efficiency by optimizing the operation management system, enhancing its risk management, reinforcing its financial control system, upgrading its human resource management, and strengthening its ability to provide added values in the electronic components industry chain.

Continuously providing the best services to help customers achieve forwardlooking and sustainable product design

WT has conducted an analysis to identify existing products that are in line with forward-looking economic activities specified by the Reference Guidelines for the Identification of sustainable economic activities in Taiwan Sustainable Taxonomy by the Financial Supervisory Commission. They are applications related to low-carbon transportation technology, high-efficiency equipment manufacturing and high-efficiency technology-related applications, and renewable energy installation. WT will continue to invest resources in these application fields to meet the goal of 20 percent operating revenue contribution from forward-looking economic activities by 2030.

Continuous optimization and upgrade in the semiconductor sector

Digital transformation has been accelerating since the pandemic began‭. ‬With sustainable development‭, ‬energy conservation‭, ‬and carbon reduction as the shared goals‭, ‬the semiconductor sector will maintain strong market potential in the long run‭. ‬Despite the‭ ‬challenges from macroeconomic uncertainties and inventory adjustments in the semiconductor sector in the short term‭, ‬WT will continue to develop high-growth products for applications such as third-generation semiconductors‭, ‬electric vehicles‭, ‬energy management‭, ‬green energy‭, ‬cloud data centers‭, ‬5G communications‭, ‬etc‭, ‬of which the rapid development also demands semiconductor components‭. ‬In addition to further developing high-growth product application markets and increasing the market share‭, ‬WT will carry on digital optimization to improve operational efficiency‭, ‬optimize operational management systems‭, ‬strengthen financial control‭ ‬systems‭, ‬and strengthen human resource management to enhance our ability to provide added value in the semiconductor industry chain‭, ‬and build the foundation for a sustainable corporate‭.‬

Our operating revenue increased by 27% from NT$353.152 billion in 2020 to NT$447.896 billion in 2021. Our profit for the year increased by 107% from NT$3.795 billion in 2020 to NT$7.855 billion in 2021, increase of NT$4.06 billion.

Post-Pandemic Era Approaches, Positive Outlooks for Semiconductors

With the accelerated global digitization driven by the pandemic and the increased demand for energy saving and carbon reduction due to climate change, the main drive for growth in 2021 comes from as increased semiconductor content in electronic products and the rapid growth in applications such as automotive electronics, industrial control, data centers, and 5G communications. In the future, in addition to developing high-growth product markets and increasing customer penetration, we will continue to carry out digital optimization to continuously improve operational efficiency, optimize our operations management system, enhance our financial control system, and strengthen our human resources management to deepen our ability to provide added value in the semiconductor industry chain, thereby building a foundation for sustainable business operations.