Walsin Technology's order trends are strong, with its backlog-to-billings ratio surging to 1.8. The company plans to increase production capacity by 10% each at year-end and next year amid growing AI demand.
Walsin Technology Corporation (2492.TW), a leading passive components manufacturer, is seeing its order trends strengthen. Its backlog-to-billings ratio, or B/B ratio, surged from 1.4 in the previous period to 1.8, suggesting that market demand is substantially exceeding supply. Chairman Jiao Youheng (焦佑衡) said orders for certain specialized products are visible through next year, and indicated that product price increases are inevitable amid rising raw material and labor costs.
The PSA Walsin business group signed an industry-academia collaboration agreement with National Taipei University of Technology. Chairman Jiao Youheng (焦佑衡) explained that the current market is not experiencing a broad-based shortage, with shortages concentrated mainly in specialized products. Customers are assessing the future potential of AI, and the company plans to accelerate production increases for AI-related products.
Capacity utilization at the Kaohsiung plant and the Dalang plant in China is nearly full, with supply particularly tight for capacitors and resistors. Strengthening production systems for these products has been identified as a priority project for capacity expansion, and a two-stage production increase is being pursued through the second half of this year and next year.
The company expects to increase production capacity by a further 10% by year-end and add another 10% next year. Accordingly, this year's capital investment will be raised to approximately NT$4 billion (approximately ¥20 billion). In addition to its overseas operations in China and Taiwan, the company is advancing investment and deployment in Japan and Malaysia and is also considering a supply structure for the U.S. market.