Delta lays out investment plans
Delta Electronics (Thailand), the leading electronics firm by market value, plans to invest $500 million to $1 billion over the next five years, mainly in Thailand, to boost manufacturing and research capacities, according to CEO Victor Cheng.
In a Bangkok Post interview, Cheng stated that this investment would be channelled into new factories in Thailand and Krishnagiri, India, and expanding R&D in Soest, Germany.
Currently operating six factories in Thailand, Delta will add two more by 2026. With a global workforce of 27,000, the firm spent nearly $200 million in 2022 and $345 million in 2023 on capital expenses.
Cheng, who became CEO on January 1, 2024, highlighted that investments are focused on products for electric vehicles, power supplies, and business-related engineered solutions and systems.
Despite a slow start for Thailand's electronics sector in the stock market and unpredictable conditions, Delta remains a robust investment, poised to leverage its financial health and profitability in navigating market turmoil.
Delta is strategically positioned to benefit from the growing e-mobility trend. The company anticipates a 15-20% revenue increase in 2023 from the previous year's record $4.1 billion.
Although growth slowed in the last quarter due to cautious demand in the EV power sector and recession fears, net profit soared to an unprecedented $524 million, up 21% thanks to revenue growth, cost management, and exceptional non-operating income.
Cheng is optimistic about robust demand for core infrastructure, with Delta's data center, telecom power, and EV sector businesses primed for growth, especially in Southeast Asia and Australia.
He foresees a potential uptick in major economies with better business sentiment, rising consumer spending, and supportive monetary and fiscal policies aiding economic recovery.
Currently operating six factories in Thailand, Delta will add two more by 2026. With a global workforce of 27,000, the firm spent nearly $200 million in 2022 and $345 million in 2023 on capital expenses.
Cheng, who became CEO on January 1, 2024, highlighted that investments are focused on products for electric vehicles, power supplies, and business-related engineered solutions and systems.
Despite a slow start for Thailand's electronics sector in the stock market and unpredictable conditions, Delta remains a robust investment, poised to leverage its financial health and profitability in navigating market turmoil.
Delta is strategically positioned to benefit from the growing e-mobility trend. The company anticipates a 15-20% revenue increase in 2023 from the previous year's record $4.1 billion.
Although growth slowed in the last quarter due to cautious demand in the EV power sector and recession fears, net profit soared to an unprecedented $524 million, up 21% thanks to revenue growth, cost management, and exceptional non-operating income.
Cheng is optimistic about robust demand for core infrastructure, with Delta's data center, telecom power, and EV sector businesses primed for growth, especially in Southeast Asia and Australia.
He foresees a potential uptick in major economies with better business sentiment, rising consumer spending, and supportive monetary and fiscal policies aiding economic recovery.
