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Power supply manufacturer Delta Electronics will focus more on electric vehicles
Foxconn won’t be the only Taiwanese Apple partner to focus on EV components. Similar intentions were expressed by Delta Electronics, which has long been known for its fans and power supplies. Delta’s e-mobility business will double its revenue annually in the coming years.
Image source: Bloomberg
Chairman of the Board of Directors of Delta Electronics Yancey Hai announced this in an interview with Bloomberg. Doubling EV Revenue Will Be Delta’s Minimum Program in Coming Years. The company will supply customers with power components that will be used in electric vehicles. This manufacturer cannot be called a newcomer to this business — Delta has been cooperating with manufacturers of electric vehicles and hybrids since the 2000s, its clients include Tesla, General Motors, Stellantis and many other automakers.
The shortage of semiconductor components will not affect the existing contracts of Delta Electronics, since the company managed to form sufficient stocks. Problems, according to company representatives, may arise for those manufacturers of electric vehicles, the demand for whose products has begun to grow faster than expected.
At the end of last year, Delta’s revenue in the automotive sector increased by 70-80%. In principle, while this type of business remains unprofitable for the company, but it can come to profit within two years, according to experts. Even the sharp increase in demand for server systems and laptops in the past year did not allow Delta to raise revenue by more than 5.4%, so the search for more dynamically growing market segments is natural. The company also intends to invest in other manufacturers of automotive components for electric vehicles and developers of specialized software.
By the end of the decade, Delta Electronics aims to convert all of its offices and manufacturing facilities to renewable electricity and achieve carbon neutrality from their operations. India to build solar power plant to supply electricity to local businesses.