Apaq Technology, a specialist in solid electrolytic capacitors, anticipates that its operations will start to improve in the second half of 2023, as cloud, HPC, edge servers and EV business opportunities mature.
Apaq stated that it will continue to develop high-reliability products with a focus on the high-end segment in response to the continuous growth of cloud, high-performance computing, and edge servers, as well as the EV market surge.
Apaq expects revenue generated from the EV segment to grow as a proportion of revenue to 2% by 2025. The company with its automotive hybrid capacitors has cut into the supply chain of Chinese EV vendors.
Apaq has also completed installing equipment for the production of CAP solid capacitors and anticipates that this product line will contribute to the company's overall revenue development. DIP capacitors remain the company's largest revenue contributor.
Sluggish consumer electronics demand had a negative impact on Apaq's performance in 2022, according to the solid capacitor specialist. The company started seeing a pick-up in orders for motherboards and VGA cards as customers make progress in inventory adjustments in the third quarter, while inventories at its notebook, HPC and server customers remained high.
The server market has yet to meet the original expectation of substantial growth in 2023, and it may take some time for customers to digest inventory, therefore Apaq's associated deliveries have been impacted, it continued. Apaq is also making deliveries for AI servers, but the percentage of revenue is unknown.
As for mobile phones, VGA cards and notebooks, customers in these sectors have now maintained healthy inventory levels, Apaq indicated.
Industry observers expect Apac to generate revenue growth in 2023.
Article translated by Jessie Shen
