Delta Electronics (2308), the world's leading supplier of power supplies, announced on July 29, 2022 at a press conference its Q2 revenue and operating results. Q2 revenue of NT$90.03 billion increased by 14.3% year-on-year, an increase of 9.0% compared to the previous quarter; gross profit of NT$26.47 billion increased by 11.8% year-on-year, an increase of 17.6% compared to the previous quarter; due to the growth in revenue coupled with the easing of the shortage of materials, the gross profit margin of NT$27.21 from the previous quarter went back to NT$29.41, which is close to the level of the first three quarters of 2021. Gross profit margin is approaching the level of the first three quarters of 2021.

With material shortages easing, revenue for the second half is expected to be better than the first half.

Delays in shipments due to wafer shortages in the first two quarters of 2022 have gradually been alleviated. The near-supply of mature process 28nm and above will help Delta continue its de-inventorying efforts. It is expected that gross margins will improve again in the third quarter, and revenue in the second half of the year will be better than that in the first half of the year, with the full year expected to fall in the range of US$12~13 billion.

Electric Vehicle segment gained and lost two flats in a single month, and full-year revenue is expected to grow 30~40% year-on-year.

Delta's electric vehicle-related areas have been affected by the continuous shortages and shortages of materials in the past four quarters; however, in the past two months, revenue in June reached a new record high, with year-on-year growth of more than 50% and close to a two-way tie with customers actively pulling in shipments. The second half of the year will continue to grow, with revenue growth in the automotive field falling between 30~40%.

Consumer Electronics Demand Slows in Second Half, Delta Prioritizes Focus on

In view of the expected slowdown in demand for consumer electronics products in the second half of the year, Delta is prioritizing its business focus on electric vehicles, network power supplies, server power supplies, and building and automation products as the driving force for continued growth.