The Joint Development Department at the second quarter of the Legal Affairs Conference, Vice Chairman and Executive Director Cai Lixing said that the mobile phone business performance is very stable and continues to expand the flagship market. It is...
The Joint Development Department at the second quarter of the Legal Affairs Conference, Vice Chairman and Executive Director Cai Lixing said that the mobile phone business performance is very stable and continues to expand the flagship market. It is expected that the flagship mobile phone business will reach US$3 billion in 2025, with an annual growth rate of more than 40%. Looking forward to the third quarter, it is expected that the flagship product acquisition will grow with Tianjiao 9500. However, demand in mainstream markets has stagnated by global economic uncertainty.
Cai Lixing pointed out that the Internet communication product portfolio of Technologies that led the industry's industry, including Wi-Fi 7, 5G data machines and 10G GPON, has also continued to expand its market share in global telecom operators and major consumer electronic brands. It is expected that the 2025 revenue will also grow strongly, reaching a scale of more than US$3 billion. In addition, the existing computing solutions of Technologies include tablets, Chromebooks, and GB10 projects jointly developed with NVIDIA, benefiting from strong AI needs and are expected to have more than 80% of the production harvest in 2025, reaching about $1 billion.
In order to prepare for future strong edge AI and cloud AI products, Joint Development Corporation has also invested heavily in 2 nanometer advanced processing to further enhance advanced AI functions and overall performance. The first 2-nanometer chip design was finalized in September, which will also make Joint Development one of the leading manufacturers to launch 2-nanometer chips.
Looking forward to the third season, Cai Lixing pointed out that he felt a surge in the production of Tianhua 9500 and GB10, and expected the growth of AI tablets and vehicle chips to be extended to the third season. However, due to the advancement of some demand into the first half of the year, the seasonality has been different, and the third quarter is expected to decline compared with the second quarter.
Cai Lixing said that the expected third-quarter closing rate is calculated at 1:29 USD to NT$130.1 billion, which will be between 14 billion and 14 billion yuan. It fell 7% to 13% in the second quarter and fell 1% to 6% in the same period in 2024. Compared with the second quarter financial reports' exchange rate of USD 1, NT$30.9, the change in exchange rate could have a potential impact on the third quarter of NT$ revenue.
Because the purchase price is in US dollars, the Joint Development Department also provides a US dollar-based third-quarter purchase target range to reflect the business status more faithfully. In the US dollar, the third quarter will be between US dollar 4.49 billion and RMB 4.83 billion, down 1% to 8% from the second quarter and 10% to 18% from the same period in 2024. The third quarter operating gross profit margin is estimated at 47% ± 1.5%, and the single quarter fee rate is estimated at 31% ± 2%.
