Acoustoelectric component maker Primax Electronics maintained steady operations in the third quarter of 2025, fueled by strong shipments of automotive and AIoT products that sustained momentum from the first half of the year.
Automotive and AIoT drive revenue growth
Boosted by ongoing growth in AI sensing, edge computing, and in-vehicle applications, Primax saw a 27% year-over-year increase during the third quarter of 2025 in its automotive/AIoT segment, which has become the company's main driver for optimizing revenue structure. Gross margin remained steady at around 17%, even with a slight decline due to currency fluctuations and product mix changes, reflecting solid cost control measures and enhanced product value.
Looking ahead to the fourth quarter of 2025, Primax noted lingering uncertainties in the global economy and geopolitical landscape. The firm plans to continue strengthening high-value areas such as AIoT, public safety, and automotive applications, while deepening the use of X-IN-1 Sensory Fusion, its multi-sensory fusion technology, which integrates visual, auditory, and tactile sensing capabilities to expand smart application scenarios such as AI surveillance and industrial inspection.
According to Yin-yi Hsiao, Primax's CFO and general manager of business, by combining system integration expertise and sensor module design, the company can offer more differentiated integrated solutions and reinforce its competitive edge in AI sensing.
New projects to fuel 2026 expansion
Looking ahead, Primax expects growth in 2026 to be mainly driven by new automotive and AIoT projects, alongside upgrades in sensing, imaging, and networking modules, with shipment volumes expected to further expand.
By product category, IT and peripheral devices are projected to maintain steady annual growth of about 5–10%, while AI applications will continue to drive demand for edge computing and intelligent networking, which will serve as key pillars for the mid-to-long-term. As AIoT and automotive projects ramp up starting in 2027, these two segments are expected to drive a new wave of growth.
Fleet management and environmental sensing in focus
In the automotive business, Primax is focused on expanding fleet management and environmental sensing applications. The company has revealed plans to add two to three new customer projects in the second half of 2025, each with an R&D cycle of approximately 18 months, with revenue contribution anticipated to begin in 2026–2027. Long-term potential in the automotive sector is expected to grow further as these new products move into mass production.
Hedging strategies to counter volatility
On the financial front, Hsiao acknowledged that exchange rate and interest rate volatility remain major challenges, but noted that robust hedging and cash management mechanisms have been established to stabilize operating cash flow and mitigate external shocks.
Capex for 2025 is set at around NT$1.5 billion (US$49 million), focusing mostly on facilities in Hsinchu and Thailand, along with next-generation AIoT technology R&D and production equipment expansion. Primax's Thai plant is expected to contribute to 30% of total production capacity by year-end, which will help diversify geopolitical risks and enhance supply chain resilience.
Strategic partnerships to expand AI ecosystem
Newly appointed chairman Yung-chung Pan made his first public appearance during the earnings call, in which he outlined the company's strategy to maintain a solid financial foundation while adopting more flexible technology and investment approaches. In addition to internal development, Primax aims to broaden its AI sensing and smart application ecosystem via strategic partnerships, joint ventures, or investments.
For the third quarter of 2025, Primax posted consolidated revenue of NT$15.9 billion, down 0.8% year-over-year. Gross margin stood at 17%, operating margin at 4.9%, and net profit after tax was NT$712 million. Cumulative revenue for the first nine months of 2025 grew by 0.5% year-over-year to NT$45.2 billion.
Article translated by Kevin Wang and edited by Jerry Chen
