News & Events

Component shortages in networking sector to last till year-end 2021

The shortages of crucial parts and materials in the networking industry are likely to persist till the end of 2021, affecting the sales performance of related makers for the year, according to sources at Wistron Neweb.

Wistron Neweb experienced a 10.2% sequential decline in revenues to NT$15.344 billion (US$552.38 million) in the first quarter of 2011, as the supplies of parts and components were falling short of its demand by 25-30%, according to company chairman Haydn Hsieh.

The company's gross margin and operating margin for first-quarter 2021 were affected by reduced sales, Hsieh added.

The tight supply of components, including various kinds of IC parts, RF chips, memory devices and MOSFET chips, is likely to begin to ease in early 2022, Hsieh said.

Despite the shortfall of parts and crucial materials, NeWeb still managed to ramp up its revenues by 4.59% on year to NT$5.137 billion in April. For January-April, revenues totaled NT$20.48 billion, up 12.06% on year.