Semiconductor materials distributor Wah Lee Industrial has enjoyed robust orders catering to customers' advanced packaging needs, such as TSMC's CoWoS, as a result of the AI server surge, according to industry sources.
The sources said the weak global economy is slowing the recovery of the consumer electronics market, with customers cautious about placing orders. But generative AI is promising huge growth in the long term, the sources added.
Wah Lee said that AI needs the support of cloud computing to process massive amounts of data, which generates demand for semiconductors made using advanced processes. Wah Lee, as a major supplier of semiconductor materials, has significant market shares at various manufacturing nodes, and it will work closely with customers for new manufacturing processes that will soon enter volume production, according to the company.
Wah Lee said that it has set up warehouse and logistics facilities in Japan to provide timely services to its customers, and that the facilities will be leveraged to help the company enter the logic and memory IC market in Japan.
Wah Lee's 5G high-frequency copper clad laminates (CCL) are in tight supply amid strong demand generated by AI servers and switches supporting cloud computing. Wah Lee's major customers have received substantial orders from many cloud service providers, and Wah Lee will accelerate production for 5G high-frequency CCLs.
CCLs for AI servers are several times more expensive than ones for traditional servers, and the increases in shipments for AI server applications will steadily shore up CCL sales for Wahlee.
Wah Lee has reported NT$30.55 billion (US$95.91 million) in consolidated sales for the first half of 2023. Its sales in the second quarter of 2023 came to NT$16.17 billion, rising 12.4% sequentially.
Its gross profit arrived at NT$1.51 billion in the second quarter of 2023, rising 38% sequentially and 5.7% year on year.
Article translated by Rodney Chan
