Most Taiwan-based network equipment makers, including Sercomm, Arcadyan Technology, Wistron NeWeb, and Alpha Networks, saw their sales for March and the first quarter register sequential and on-year increases, despite macro headwinds.
Meanwhile, Gemtek Technology and Accton Technology saw their March revenue hit historic highs for the month.
The superior performance of these firms demonstrates the resilience of Taiwanese network device makers in delivery and price competitiveness amid the ongoing US-China trade conflicts, according to industry sources.
Sercomm posted revenues of NT$5.34 billion (US$176.22 million), up 11% year-on-year. For the first quarter of 2023, revenues totaled NT$15.66 billion, increasing 24% from a year earlier.
Arcadyan's March revenue reached NT$3.774 billion, up 7.1% sequentially and 4.1% year-on-year. For January-March, sales amounted to NT$11.021 billion for an annual increase of 7.0%.
Gemtek garnered NT$2.985 billion for March, increasing 60.27% on year, and revenue for January-March increased 36.48% to NT$7.062 billion.
Sercomm pointed out that various countries are actively deploying digital infrastructure, driving demand for network equipment upgrades. In addition, Sercomm has continued to enhance its global deployments, making significant gains in emerging markets such as India, Latin America, and Southeast Asia.
Regarding production capacity, Sercomm has established diverse and flexible production bases to serve global telecommunications customers. In response to customer demand, the company is expanding the production capacity of its new factory in the Philippines and deepening cooperation with customers to strengthen its competitiveness.
Arcadyan said it expects growth in this year's first half compared to the same period a year earlier, but the extent is difficult to estimate due to many external variables. However, there is a chance of an economic recovery in the second half.
Arcadyan noted that European customers are now more conservative, and demand in the US market is relatively better.
Construction of Arcadyan's second-phase facilities are slated for completion in third-quarter 2023, making it ready to land large-quantity orders when the pace of the economic recovery begins to accelerate.
Article translated by Steve Shen
