The electric vehicle (EV) boom is expected to drive "at least" double-digit annual growth for the next five years, according to Taiwan's Delta Electronics Ltd, a supplier of power components to businesses like Tesla Inc.
In upbeat remarks during a fourth-quarter earnings call, Chairman Yancey Hai said that the company was profiting from the switch from conventional gasoline-powered automobiles to EVs.
"On average the company will grow at a double-digit rate for the next few years. If you say the mid-term is three to five years, I think our goal is to grow at least double digits for the next five years," he said.
When the firm reported its fourth-quarter gross profit soared 32% year over year to T$29.6 billion ($974.55 million), Hai said that components like fans, which had traditionally largely gone into products like personal computers, are now increasingly going into EVs instead.
"So EVs are going to be one of the biggest drivers, and also data centres," he said, pointing to the "huge" centres companies such as Meta Platforms and Microsoft Corp are building.
As part of a $7.5 billion federal programme to increase the use of EVs and reduce carbon emissions, Tesla announced last week that it will make a portion of its U.S. charging network available to EVs built by competitors.
The auto industry was particularly severely struck by COVID-related unrest in China and a global chip shortage, but Hai stated that while the supply chain situation for Delta and car manufacturing has much improved, there are still some chips, such as microcontrollers, facing minor shortages.
A variety of products, including cellphones, personal computers, servers, and electric car charging stations, use electrical flow controls made by Delta, a company that is owned by a number of parties, including the government of Singapore.
Delta's shares have risen 1.2 per cent so far this year, giving it a market value of $24.68 billion.