Although Taiwan's complete vehicle exports to the US consist mainly of a small number of ATVs, Taiwanese automotive parts firms have still felt mounting pressure from Trump's tariff policies and the ensuing global economic turbulence. In particular, SuperAlloy Industrial (SAI) has drawn significant attention, as its forged aluminum wheels are widely used by high-end automakers worldwide.
According to SAI, due to the highly volatile global political and economic situation, continued inflation, and sluggish demand in the end-user market, the global automotive supply chain is facing considerable stress in general. As a result, automakers have become more cautious in developing and marketing new models.
Regarding the uncertainties surrounding Trump's tariff policies, SAI notes that its wheel products are primarily exported to Europe. North America only accounts for roughly 13% of the company's revenue, with most transactions conducted under free on board (FOB) terms. SAI's own internal evaluations show that only 7% of its business is directly impacted by tariffs. Moreover, since wheels only account for 2% of a complete vehicle's total value, even if tariffs are fully implemented, the pass-on effect and other short-term impacts will be very limited.
Nevertheless, SAI continues to maintain close contact with its clients while keeping a close eye on policy changes. Most of the company's clients have continued to follow their original plans for ordering and selling products. In addition, as part of its deep commitment to leading global automakers, SAI has continued to develop and optimize its production processes, strengthen cost control measures, and improve supply chain flexibility in anticipation of an eventual market recovery.
Expansion into aluminum materials business
Looking ahead to the year, SAI maintains an optimistic outlook as it transitions to become an aluminum materials solutions provider, a part of its efforts in expanding its aluminum materials business. The company's semiconductor aluminum materials are currently undergoing verification, while validation of equipment specifications at its second smelting plant is underway; this plant is expected to be completed by the second quarter of 2026, adding 100,000 tonnes in production capacity.
Internal optimizations, improved product mix boost profits
For April 2025, SAI posted NT$563 million (US$18.6 million) in consolidated revenue, a 17.54% drop from the NT$683 million (US$22.6 million) in the previous month, and a 9.21% slide from the NT$620 million (US$20.5 million) in April 2024. Total consolidated revenue in the first four months of 2025 reached NT$2.481 billion (US$81.9 million), a drop of 3.62% from the NT$2.575 billion (US$85 million) in the same period last year.
For the first quarter of 2025, although consolidated revenue shrunk by a slight 1.9% year over year to NT$1.918 billion (US$63.3 million), profits grew by 9.9% year over year to NT$299 million (US$9.9 million), thanks to improvements in order structure, production processes, and cost control measures. Net income after tax attributable to the parent company also grew by 42% year over year to NT$354 million (US$11.7 million).
Even though SAI saw a slight year-over-year dip in revenue, the company has continued to improve its product mix, in particular in custom wheel orders made using its RESAICAL recycled aluminum. Recycled aluminum accounted for 40% of SAI's production in the first quarter of 2025, a 6% year-over-year increase.
Furthermore, SAI saw record-high profits in the first quarter due to internal optimizations in production, human resource allocation, and cost control measures. For the first quarter of 2025, gross margin, operating margin, and net profit margin reached 28.4%, 15.6%, and 18.5%, respectively, with all three figures seeing increases compared to both the previous quarter and the same period last year. For 2025, the company is also on target to reach its long-term goal of 15–20% in operating margin.
Article translated by Kevin Wang and edited by Jerry Chen
