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Quanta Computer Inc
In the sprawling tech corridors of Taiwan, Quanta Computer Inc. has etched its name as a pivotal player in the global manufacturing sector. Founded in 1988 by Barry Lam, Quanta began its journey amid the rise of the personal computer era. It has since matured into one of the world's largest original design manufacturers (ODMs) of notebooks and other high-tech products. The company collaborates with major brands like Apple, Dell, and HP, producing high-quality laptops, tablets, and a variety of consumer electronics. By crafting tailored computing solutions that embody its clients’ brand identities, Quanta bridges the gap between technology innovation and mass production, capitalizing on the constant demand for personal connectivity and technological advancement.
Quanta’s business model thrives on scale and precision, leveraging its extensive supply chain management and advanced manufacturing processes. This approach allows the company to produce electronics at competitive prices without sacrificing quality, a balance that fuels profitability. Furthermore, Quanta has diversified its portfolio by venturing into emerging areas such as cloud computing, data centers, and smart connected devices. This strategy not only fortifies its position in the traditional computing market but also positions the company advantageously within the broader tech ecosystem, poised to capture the evolving digital transformation. Through a relentless focus on research and development, the company sustains a forward-looking vision, ensuring that it remains at the forefront of industry innovation.
In the sprawling tech corridors of Taiwan, Quanta Computer Inc. has etched its name as a pivotal player in the global manufacturing sector. Founded in 1988 by Barry Lam, Quanta began its journey amid the rise of the personal computer era. It has since matured into one of the world's largest original design manufacturers (ODMs) of notebooks and other high-tech products. The company collaborates with major brands like Apple, Dell, and HP, producing high-quality laptops, tablets, and a variety of consumer electronics. By crafting tailored computing solutions that embody its clients’ brand identities, Quanta bridges the gap between technology innovation and mass production, capitalizing on the constant demand for personal connectivity and technological advancement.
Quanta’s business model thrives on scale and precision, leveraging its extensive supply chain management and advanced manufacturing processes. This approach allows the company to produce electronics at competitive prices without sacrificing quality, a balance that fuels profitability. Furthermore, Quanta has diversified its portfolio by venturing into emerging areas such as cloud computing, data centers, and smart connected devices. This strategy not only fortifies its position in the traditional computing market but also positions the company advantageously within the broader tech ecosystem, poised to capture the evolving digital transformation. Through a relentless focus on research and development, the company sustains a forward-looking vision, ensuring that it remains at the forefront of industry innovation.
Record Revenue: Quanta posted record Q2 revenue of TWD 504 billion, up 3.8% quarter-on-quarter and 62.6% year-on-year, despite currency headwinds.
AI Server Momentum: AI server shipments and revenue remain strong, with over 60% of total server sales in H1 from AI servers. Growth is expected to be steady into Q3 amid a transition to next-generation platforms.
Margin Pressures: Gross margin declined to 7% in Q2, down 88 bps sequentially, mainly due to FX effects and higher ASP AI product mix. Margin pressure is expected to persist in Q3.
Notebook Outperformance: Notebook shipments reached 12.1 million units, up 12% quarter-on-quarter, driven by customers pulling forward demand ahead of US tariffs.
CapEx & Expansion: The board approved major investments, including USD 170M into US AI server capacity, a Mexico facility for AI servers, and a USD 50M investment in quantum computing.
Capital Flexibility: Approved a USD 1B ECB issuance and USD 1.5B loan refinancing to support growth and maintain a strong balance sheet.
Dividend Commitment: Maintained over 80% payout ratio, distributing a record TWD 50.2B in cash dividends.