Taiwan’s Delta Electronics, a leading supplier of power components to Tesla and other companies, is expecting significant growth in the next five years driven by the electric vehicle (EV) boom. The company’s chairman, Yancey Hai, made the bullish comments during a fourth-quarter earnings call, citing the shift towards EVs from traditional gasoline-powered vehicles as a major driver of growth. He stated that the company would grow at a double-digit rate on average for the next few years and that their goal is to achieve at least double-digit growth for the next five years.
Delta Electronics’ components, such as fans, which were previously used in personal computers, are now being increasingly used in EVs. Hai also highlighted the significant growth potential in data centers, pointing to the massive centers being built by companies such as Meta Platforms and Microsoft Corp.
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The company’s fourth-quarter gross profit increased by 32% year-on-year to T$29.6 billion ($974.55 million), with EVs and data centers being the main contributors. Tesla’s recent announcement to open part of its U.S. charging network to EVs made by rivals is expected to further boost the demand for EVs.
Although the supply chain situation for Delta and car factories has improved significantly, Hai stated that there are still minor shortages of chips such as microcontrollers.
Delta Electronics, whose shareholders include Singapore’s government, produces devices that control the flow of electricity in a range of products, including smartphones, personal computers, servers, and EV charging stations. The company’s shares have risen by 1.2% so far this year, with a market value of $24.68 billion.
