Chenbro upbeat about 2022

Aaron Lee, Taipei; Adam Hwang, DIGITIMES Asia 0


Rack-mounted and tower server chassis maker Chenbro Micom expects new CPU platforms and development of 5G, AI, IoT, edge computing and NFT applications to boost demand for servers, and is optimistic about its 2022 business, forecasting revenues to grow over 10% on year.

But there are uncertainties from potential hikes in component/material cost arising from Russia's invasion of Ukraine and from COVID impacts on the supply chain, Chenbro said. In a bid to reduce negative impact, Chenbro said it is adjusting product mix to create an own brand for standardized models of chassis.

Chenbro posted consolidated revenues of NT$9.423 billion (US$338 million) and net profit of NT$672.9 million for 2021.

Server chassis and HDD (hard disk driver) enclosure took up 98% of the consolidated revenues. The US accounted for 45% of the revenues, China 33%, Europe 6%, and others 16%.

Chenbro started production at its new factory in southern Taiwan in January 2022, with highly automated production lines helping solve problems of high labor cost and labor shortage.

Chenbro stopped production at its factory in Dongguan, China during March 16-21 in line with the local government's COVID lockdowns.

Chenbro has reported consolidated revenues of NT$538.9 million for February, decreasing 26.76% sequentially but increasing 23.39% on year, and those of NT$1.275 billion for January-February grew 25.74% on year.