Global Tek forecasts double-digit growth
By Meryl Kao / Staff Reporter
Precision metal component maker Global Tek Fabrication Co Ltd (時碩工業) yesterday said it expects revenue this year to grow by at least a double-digit percentage from last year’s NT$4.97 billion (US$153.47 million), driven by volume shipments of key components for artificial intelligence (AI) liquid cooling systems.
Global Tek said it began ramping up production of key components last quarter from its factory in Wuxi, China.
The growth would also be fueled by rising demand for key components used in industrial applications and aerospace devices, the company said.
Global Tek Fabrication Co Ltd president Donald Huang poses for a photograph in Taipei yesterday.
Photo: Meryl Kao, Taipei Times
The momentum is expected to extend into next year, as the company has secured orders from several major cloud service providers in the US and Japan for liquid-cooling components, Global Tek president Donald Huang (黃亞興) said at an earnings conference in Taipei.
The products include microchannel cold plate components, universal quick-disconnect fittings, manifolds, valve bodies and other fluid-control components, Huang said.
The company is on track to boost AI-related and other emerging businesses to account for 20 percent of revenue in the first half of next year, from 6.2 percent in the first nine months of the year from thermal management systems for AI data centers, driven by new overseas orders for liquid-cooling systems, Huang said.
Global Tek mainly manufactures precision metal components for automotive, industrial and aerospace applications. Industrial applications components were the largest share of revenue during the first nine months of this year, accounting for 35 percent, company data showed. During the period, revenue expanded 23.41 percent annually to NT$4.64 billion.
Revenue is expected to remain robust this quarter, supported by steady demand from established automotive and industrial control businesses as well as growth in aerospace, AI, semiconductor equipment and humanoid robot applications, Huang said.
Shipments of precision components for a Chinese humanoid robot maker entered small-volume production this quarter and are expected to provide additional growth momentum next year, he said.
In Thailand, the company plans to inaugurate a new factory on Tuesday next week in Chonburi Province, where it also operates two other factories. The new factory is to enter volume production next year. In total, the company has invested NT$1 billion in the Thailand site, it said.
The Thailand factories produce components used in semiconductor equipment and robot-related applications, with aerospace aluminum alloy casting and stainless-steel precision casting to be added, Huang said.
The first phase of the aerospace aluminum alloy casting production line is expected to involve about NT$150 million in equipment investment, with mass production of the casting line scheduled to begin by the end of 2028, he said.
Global Tek would continue to expand capacity in its Wuxi, Suzhou and Xian factories, given the Chinese sites’ manufacturing advantages in terms of scale and costs, Huang said.
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