D-Link Corporation is defying the slowdown in global networking demand triggered by inflation and geopolitical tensions. Backed by its global distribution network, the company continues to post stable revenue. Its "Made in Taiwan" strategy—anchored in the belief that "cybersecurity is national security"—recently secured a five-year supply deal with a US client.
CEO CJ Chang said D-Link remains confident in its channel network's ability to sustain revenue, even as global volatility clouds forecasts. After posting a loss in the first quarter of 2024, the company is targeting break-even in the second quarter and aiming to rebound in the second half.
Taiwan manufacturing takes center stage amid geopolitical tensions
As supply chain security takes center stage, D-Link is doubling down on its Taiwan-based manufacturing. CJ Chang said the company began its "Made in Taiwan" shift in 2018 during Donald Trump's first term, citing risks tied to Chinese suppliers. The transition accelerated after Taiwan Steel Group (TSG) acquired D-Link in 2020. Today, 65% of components are Taiwan-sourced, with Tainan as the main production site.
Chang acknowledged full decoupling from China is unrealistic, as minor parts still come from Chinese suppliers. But core chipsets remain sourced mainly from Taiwan.
Chang noted consumer markets remain price-sensitive—just a few extra dollars can deter buyers. But enterprise clients increasingly prioritize cybersecurity and supply chain integrity. D-Link's strategy helped it secure a five-year US deal as proof of that shift.
Price discipline amid Chinese competition
Commenting on reports of a US probe into TP-Link, D-Link said Washington's growing focus on cybersecurity is encouraging, though its full impact remains to be seen.
Under pressure from Chinese rivals dumping low-cost products in non-US markets, Chang said D-Link will not slash prices. Unlike Chinese firms with subsidies and a vast home market, Taiwan's limited scale makes deep discounting unsustainable.
Short-term promotions may boost visibility, but Chang said the long game is building the brand value of "Made in Taiwan."
SMB focus builds value-driven supply chain
D-Link operates nearly 90 locations globally, offering localized service—a key competitive edge. Instead of chasing large telecom contracts, it focuses on SMB clients who value service over price. The "small wins" model lets D-Link build a value-centric supply chain and retain control over production.
Chang said Wi-Fi 7 is more of a tech showcase than a revenue driver for now. Most users don't yet need its full bandwidth. Wi-Fi 6 remains the main commercial engine.
At its May 27, 2024 shareholder meeting, D-Link approved a NT$0.1 per share cash dividend. For 2024, it posted revenue of NT$14.4 billion (US$481 million), down slightly year-over-year, but with gross margin up to 26%. Net income reached NT$35 million, with EPS at NT$0.06.
Three-pronged strategy targets connectivity boom
D-Link plans to scale its commercial, consumer, and industrial lines to meet rising global demand for connectivity.
For commercial clients, D-Link is expanding its Wi-Fi 6/6E/7 switch lineup with 2.5G to 25G options, integrated with its Nuclias platforms. On the consumer side, it's rolling out Wi-Fi 7 routers with AI optimization and support for Matter and Thread. In mobile broadband, it launched new 5G-NR CPEs and USB dongles for telecom and retail customers.
In industrial sectors, D-Link is pairing M2M devices with cloud platforms for EV charging, signage, and smart transit. Its new industrial-grade switches support fiber and redundancy for high-reliability infrastructure.
D-Link plans deeper ties with ODMs and telecom partners, integrating AI management with cloud platforms to grow high-value solution revenue and improve profitability.
Looking ahead, Chang underscored D-Link's brand pillars: Taiwanese quality, innovation, solution-first service, and sustainability. The company aims to expand globally, upgrade products, and boost service innovation, while improving internal synergy for long-term growth.
Article edited by Jerry Chen
