Anticipated Rise in Q2 Revenue for Delta Airlines Before Tariff Impact

Anticipated Rise in Q2 Revenue for Delta Airlines Before Tariff Impact

Rewritten Article:

• Written by Meryl Kao, Staff Writer

Delta Electronics Inc (台達電) predicts a revenue boost for Q2, surpassing Q1's impressive 30% year-on-year increase to NT$118.92 billion (US$3.71 billion). Chairman Ping Cheng revealed this optimistic outlook during an earnings conference in Taipei, crediting the jump in US orders ahead of President Donald Trump's proposed tariffs on Taiwanese goods.

With the 90-day tariff implementation pause announced on April 9, Delta looks confident about continuing their long-term projects without any major adjustments to their budget this year, according to Cheng. However, the picture for Q3 and Q4 remains uncertain.

Cheng shed light on Delta's global production strategy when asked about building a new factory in the US. The company is well-equipped with production sites worldwide, including China, Thailand, Taiwan, India, the US, Slovakia, and Brazil. The company is currently constructing around five new factories in Thailand, with plans to potentially designate it as Delta's second headquarters, owing to its established data center.

Lanford Liu, Delta’s Vice President for Corporate Investment, provided some insights into the company's design progress for Nvidia Corp's GB300 server heat dissipation components. While details are still under discussion, Liu mentioned the potential need for immersion cooling technology for high-end products.

Addressing the challenges posed by newer GPU models like the GB200 and GB300, which require water cooling and are incompatible with traditional air-cooling systems, Delta has developed an AI containerized data center. This innovation integrates computer racks, cooling systems, and power supply units, offering quick and easy on-site deployment.

Delta posted impressive quarterly results in Q1, with net profit reaching NT$10.23 billion and gross margins rising 2.3 percentage points year-on-year to 31.8%. Gross profit increased by 40% to NT$37.8 billion, driven by surging demand for AI power supply products and heat dissipation components. Operating costs rose due to increased machinery purchases but are expected to decrease in the subsequent quarters.

Sales of power electronics products accounted for 50% of Delta's total sales in Q1, followed by infrastructure (29%), automation (12%), and mobility (9%). The ambitious plans for production expansion and technological innovation put Delta in a strong position for future growth. To stay updated on Delta's developments, keep an eye on their official statements and press releases.

Enrichment Data:- Delta reported substantial growth in sales and net income for Q1 2025, with robust performance driven by AI power supply products and heat dissipation components.[1][2]- The impact of tariffs on companies like Delta Electronics can be significant, but specific expectations regarding new factory plans or the effect of a US tariff pause on Q2 revenue aren't detailed in the available information.- Establishing new facilities might enable companies like Delta to expand production capacity and reduce reliance on imports, potentially mitigating tariff risks. However, the direct implications of Delta's new factory plans in the US and Thailand on Q2 revenue aren't explicitly stated.- While there's been no specific mention of a US tariff pause impacting Delta Electronics, any reduction in tariffs could generally benefit companies relying on international trade by reducing costs and increasing competitiveness.

1. Delta Electronics Inc expects a rise in Q2 revenue due to increased US orders, outpacing the impressive 30% year-on-year growth in Q1, despite pending tariffs.
2. Chairman Ping Cheng of Delta Electronics Inc highlighted that the company's deployments will continue without substantial adjustments to their budget in 2020, amid the announced tariff implementation pause.
3. In response to questions about building new factories, Delta Electronics Inc presented their global production strategy, which includes utilizing technology like immersion cooling for high-end products, as demonstrated in their innovative AI containerized data center design for Nvidia Corp's GB300 server heat dissipation components.

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