Taiwan-based Nichidenbo, which distributes capacitors, MLCCs and other passive components for vendors such as Nippon Chemi-Con and Samsung Electro-Mechanics (Semco), expects strong demand for AI servers and other emerging device applications to drive its revenue growth in 2024.
The majority of customer purchases are for AI servers, demonstrating that high-performance computing is in strong demand, according to Nichidenbo president and spokesperson Kent Yu. Passive component specifications and heat dissipation criteria are being improved at the same time, said Yu.
In addition, Yu continued, charging piles for electric vehicles are gaining popularity, driving up demand for passive components.
The markets for high-end servers and automobiles may be relatively constrained during the second half of 2023 and 2024, Yu indicated. The inventory levels of Nichidenbo's corresponding products, which include automotive MLCCs and chip resistors, polymer tantalum capacitors, and aluminum electrolytic capacitors, are healthy for the next two months, Yu said.
However, macro factors such as inflation, interest rate hikes, the war between Russia and Ukraine, and trade disputes between the US and China may still bring variables to end-market demand this year, Yu noted. Nichidenbo will continue to expand its presence in the AI, high-end, and automotive device markets as it awaits a genuine demand uptick.
Nichidenbo will also aggressively expand into the Southeast Asian and Indian markets, according to Yu.
Article translated by Jessie Shen
