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Tripod Technology Corporation (3044) is optimistic about the market conditions for server and automotive boards, expecting quarterly growth from Q2 to Q3 and aiming for an annual revenue of NT$65 billion (approximately 14.6 billion RMB or $2 billion) by the end of 2024, similar to 2022. Their production is primarily based in Vietnam, with a new plant set to start construction in the second half of the year to target server market opportunities.

In May, Tripod's revenue was NT$5.098 billion, down 6.42% month-on-month. The cumulative revenue for the first five months was NT$25.8 billion, a 10.82% year-on-year increase.

Analysts estimate Q2 revenue to grow approximately 5% compared to Q1. Tripod is optimistic about the demand for servers and automotive boards in the second half of the year, despite challenges in the automotive market. Their strong position in the high-density interconnect (HDI) automotive boards sector is expected to drive growth.

Additionally, in response to the recent surge in raw material costs, Tripod stated that due to the large scale of their operations in the hardboard sector, they have relatively better bargaining power over material prices. Currently, they are not affected by price increases from copper-clad laminate suppliers. However, the rise in gold prices since 2024, which accounts for 7-10% of raw material costs, will be reflected in customer pricing.

In early 2023, Tripod Technology acquired a Japanese-owned PCB factory, Vietnam FICT Co., Ltd., located in the Bien Hoa Industrial Zone of Dong Nai Province, Vietnam, for 1 USD. This factory, Tripod's first in Vietnam, primarily produces low-end automotive boards and consumer electronic boards.

The existing plant in Vietnam has reached break-even. Tripod Technology will invest 250 million USD (approximately 1.809 billion CNY) in building a factory in the Chau Duc Industrial Park, primarily producing circuit boards with an annual capacity of 372,000 square meters. This project will start construction in the latter half of the year, contribute to revenue by 2026, and create over 1,700 job opportunities.

Editor：Lulu

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