Radiant Optoelectronics, a key backlight module supplier for Apple notebooks and tablets, reports that customers have remained calm about tariffs imposed under the Trump administration, with no discussions about sharing these costs. Chairman Justin Wang described client reactions as very "chill."
Wang expressed caution about Radiant's 2025 outlook, stating there is "no reason to be optimistic" amid ongoing global uncertainties. The company is preparing for challenging conditions while noting that its new metalens products have entered mass production, making the first quarter of 2025 less seasonal than usual.
As Radiant doesn't ship directly to the US, tariffs have had minimal direct impact, though some US-sourced materials used in China have seen cost increases. Wang emphasized that tariff tensions have created broader macroeconomic issues affecting purchasing power and investments globally, with industries operating on thin profit margins particularly vulnerable.
Despite the uncertain environment, Radiant observed customers accelerating shipments in May following new tariff implementations. Wang noted fewer new models are expected in 2025, with significant volume increases likely only in late 2025 or early 2026. The company projects full-year 2025 revenue to decline by a high single-digit percentage.
Radiant's expansion continues with its Vietnam factory scheduled for customer validation in the third quarter of 2025 and production in the fourth quarter. The company has acquired two firms over the past year and is working with Finnish subsidiary Nanocomp to develop ultra-thin front light panels, while Danish subsidiary NIL Technology has begun mass-producing metalenses for industrial applications.
Capital expenditures will increase four to five-fold in 2025 to over NT$13 billion (US$400 million), with investments in R&D and new production facilities in Taiwan and Malaysia.
Radiant reported 2024 consolidated revenue of NT$51.63 billion (US$1.59 billion), up 17% year-over-year, with the first quarter of 2025 revenue at NT$12.029 billion (US$370 million), up 11% year-over-year but down 18% quarter-over-quarter.
Article edited by Joseph Chen
