TAIPEI (Taiwan News) — Yageo Corp. Chair Pierre Chen (陳泰銘) said the company expects strong order volume in the second half of the year, driven by rising AI demand, with some orders coming from US cloud firms using AI servers powered by GPUs and AI chips, CNA reported.
Yageo is a leading global passive component manufacturer that produces resistors, capacitors, and sensors. Its products are used in AI servers, electric vehicles, smartphones, and industrial control systems.
Chen said Yageo operates a research and development center in the US staffed by teams from US passive component supplier Kemet, which it acquired in 2020. He said the company is also working with clients to develop customized electronic components for AI servers, cloud service providers, defense companies, and electric vehicle makers by leveraging Taiwan’s manufacturing strengths.
Chen forecast that AI-related products will continue to advance as global cloud services expand, shifting toward lower-cost, energy-efficient, and higher-performance solutions. He added that high-end customized electronic components account for 80% of the company’s revenue and continue to grow.
Chen said AI servers can use more than 10,000 types of resistors and capacitors, increasing demand for suppliers that can provide comprehensive solutions. He added that AI equipment needs higher performance, which has increased demand for tantalum capacitors in AI servers and helped boost Yageo’s revenue from this segment.
Compared with ceramic capacitors, tantalum capacitors offer longer lifespans, better voltage and temperature stability, and higher tolerance for high current loads. They are used in AI chips, compact circuits, and automotive or industrial systems that operate in extreme temperatures.
In October, Yageo also acquired more than 87% of Japan-based sensor maker Shibaura Electronics. The move strengthens Yageo’s presence in temperature sensing for automotive, industrial, and AI liquid cooling applications.
Taiwan is a global hub for AI development, covering IC design, wafer manufacturing, packaging, and electronics production. Chen said Yageo will expand its research and development capacity to meet customer needs and maintain its key role in the AI supply chain.
