AI trends have fueled strong demand for data center chips and optical communications, pushing IC distributor WT Microelectronics' cumulative revenue for the first 11 months of 2025 to NT$1.08 trillion (US$34.64 billion), officially surpassing the trillion-dollar mark.
Looking ahead, WT expects a gradual recovery in the European and US automotive markets in 2025, while Asia remains stable despite some volatility. Major cloud service providers (CSPs) continue to announce investment plans, and momentum for artificial intelligence (AI) data centers is expected to remain strong in 2026, supporting an overall optimistic outlook.
Joining the trillion-dollar club
Hon Hai Precision Industry (Foxconn), Taiwan Semiconductor Manufacturing Company (TSMC), Pegatron, Quanta Computer, and Wistron all posted full-year revenue exceeding NT$1 trillion in 2024, forming what the market calls the "trillion-dollar revenue club F5." According to investment institutions, WT and WPG Holdings were seen as potential new entrants in 2025. With WT's latest revenue announcement, the company has now officially joined the trillion-dollar revenue club.
In November 2025 alone, WT posted revenue of NT$116.59 billion, down 8.1% sequentially but up a substantial 72.8% year over year. Cumulative revenue for the first 11 months of 2025 reached NT$1.08 trillion, representing a 24.98% increase compared with the same period last year.
Data centers, communications drive growth
WT attributed the nearly 25% revenue growth in 2025 primarily to contributions from the data center and communications sectors. Data center business growth was mainly fueled by AI demand, particularly from hyperscale deployments, covering IC components for computing, power management, and communications, with computing ICs growing the fastest.
From a timing perspective, the data center business showed a trend of stronger performance in the second half of the year. Growth was relatively modest in the first half and began accelerating gradually in the second half.
The communications business also grew by roughly 20%, boosted by rising demand for high-efficiency data transmission in data centers. This has increased sales of optical transceiver modules, which have become the main driver of growth in this segment.
Gradual recovery in European, US auto markets
Regarding the automotive and industrial markets, WT said the European and US automotive markets gradually recovered in 2025, showing quarter-over-quarter growth. The market bottomed out around the end of 2024 to the first quarter of 2025, and growth became more pronounced as inventory adjustments in Europe and the US were completed. In contrast, China's industrial and automotive markets experienced greater volatility but remained generally stable.
Entering the year-end seasonal slowdown, WT highlighted that PCs and consumer electronics saw better year-over-year growth in the first three quarters of 2025. Revenue in the fourth quarter is expected to be lower than in the third quarter due to seasonal factors.
Memory shortage remains a concern
Ongoing memory shortages remain a significant concern for the consumer market. Industry sources noted that large system manufacturers, such as PC or smartphone makers, usually secure a fixed supply through contracts. However, smaller or niche peripheral manufacturers rely on the spot market and may struggle to obtain sufficient supply under tight conditions.
Business footprint expansion
WT has actively expanded its business footprint in recent years. Following its merger with Canada-based Future Electronics, the deal has provided a significant boost to WT's presence in the European and US markets, as passive components comprise around 20% to 30% of Future's portfolio.
Additionally, WT has deepened its cooperation with passive component distributor Nichidenbo (NDB) through a share swap, acquiring nearly 36% ownership and becoming NDB's largest shareholder.
Industry experts say WT can leverage its strong position in the Asian market to help NDB expand its business, offering customers a one-stop-shop solution that allows them to source both active ICs and passive components through WT's resources.
Article translated by Eifeh Strom and edited by Jerry Chen
