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Asustek Shareholder Meeting: GM Lin Che-wei Says New Qualcomm ASIC Client to Ramp Up in Second Half

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Asustek's General Manager Lin Che-wei anticipates revenue growth in the first half of the year, with a more moderate second half due to market pressures.
  • The company is developing next-generation PCIe Gen 6 and Gen 7 specifications and expects new ASIC partnerships to contribute revenue starting in the latter half of next year.
  • Asustek's board has been re-elected, including an increase in female board members, and the company approved a record-high cash dividend of NT$45 per share.

Asustek (5269) anticipates revenue growth in the first half of the year, though General Manager Lin Che-wei cautioned that the second half may see a slowdown due to market pressures like rising memory prices and competition from CPU and server markets. Despite these challenges, the company expects full-year profits to surpass last year's figures.

We are fully investing and deploying in new technologies and new markets.

— Lin Che-weiGeneral Manager of Asustek, discussing the company's strategic investments.

The company is actively investing in new technologies and markets. Its ASIC business is set to benefit from a new partnership with Qualcomm, targeting IPC and IoT applications, with production expected to ramp up in the second half of this year. Asustek is also preparing for future high-bandwidth demands by developing PCIe Gen 6 and Gen 7 specifications. Products utilizing TSMC's 12nm process for PCIe Gen 5 and USB4 V2 are slated for tape-out in the latter half of this year, driven by the growth in Edge AI and Physical AI applications.

In the automotive sector, Asustek has secured clients in Japan, South Korea, China, and India for its front-fit market, while the after-fit market remains stable. Key applications include comprehensive vehicle camera systems, smart electronic rearview mirrors, central control panoramic systems, and navigation imaging systems. The company expects its Serdes automotive IP, due for completion by year-end, to be a crucial technology for entering the front-fit market and expanding its automotive business.

The second partner for ASIC, Qualcomm, targets IPC and IoT markets, and its products will gradually ramp up in the second half of this year to provide momentum.

— Lin Che-weiGeneral Manager of Asustek, detailing the impact of a new ASIC partnership.

During its shareholder meeting, Asustek reported full-year 2023 revenue of NT$13.415 billion and a net profit of NT$5.426 billion, translating to NT$72.7 per share. The shareholders approved a record-high cash dividend of NT$45 per share. The board of directors was also re-elected, with a focus on strengthening corporate governance and increasing female representation.

The next-generation cooperative project has already been sampled, and it is expected to start contributing revenue in the second half of next year.

— Lin Che-weiGeneral Manager of Asustek, discussing future revenue streams from new ASIC projects.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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