TAIPEI (Taiwan News) — Power supply maker Phihong Technology is working toward AI-related networking products and low-Earth-orbit satellite applications due to supply constraints.
President Frank Lin (林冠宏) said on Tuesday that shortages of memory and other materials have slowed growth for non-AI customers such as mobile phones and machine tools. The company has in response focused on higher-value areas, per CNA.
Phihong reported first-quarter revenue of NT$2 billion (US$64.6 million), down 10.9% from the previous quarter and 7.2% from a year earlier, with a net loss attributable to the parent of NT$145 million. The company has posted losses for two consecutive quarters, with a loss per share of NT$0.35, per CNA.
Despite the losses, first-quarter gross margin rose to 21.1%, up 2.1 percentage points year over year. Lin said margins are expected to improve further in the second quarter as the company’s transformation strategy gains traction, per CNA.
Lin said the margin improvement reflects progress in Phihong’s “transformation 2.0,” shifting from low-power supplies toward higher-wattage products above 500 W and 1000 W. Mobile products once accounted for more than 60% of revenue but have fallen to about 20% and are expected to drop further to 12% this year, per UDN.
He said capital markets show investment flowing toward AI and low-Earth-orbit satellite sectors, while traditional segments face material shortages that constrain growth. These pressures have reinforced the company’s decision to pivot toward higher-growth businesses, per UDN.
Phihong has entered the supply chains of three North American low-Earth-orbit satellite customers and is a key supplier for each, mainly providing power units for ground receivers. The company aims to expand into higher-power applications such as gateway equipment, per the Economic Daily News.
In AI, Lin acknowledged that the cloud data center power market is dominated by larger Taiwanese peers such as Delta Electronics and Lite-On Technology. Phihong plans to focus pragmatically on power solutions for networking peripherals in AI data centers, which it expects to be its main growth driver this year, per the Economic Daily News.
The company estimates networking products will account for 40% of revenue in 2026, up sharply from 27% last year, helping lift profitability. Lin added that Nvidia CEO Jensen Huang’s (黃仁勳) unveiling of the RTX Spark AI computer at Computex signals a shift of AI from cloud to edge, creating new opportunities for the company, per the Economic Daily News.
