Wu Chia-chao: AI effect is spreading, no fear of a bubble; Nan Ya expects a brilliant year

Nan Ya held its shareholders' meeting today, where Wu Chia-chao, President of Formosa Plastics Group and Chairman of Nan Ya, stated that with the support of artificial intelligence (AI), Nan Ya's revenue share from electronic products and materials exceeded 50% in the first quarter of this year, and quarterly profit surpassed the total profit of the previous three years. He is optimistic that Nan Ya's second-quarter profit will increase significantly, predicting a brilliant year ahead. Wu observed that the current AI wave is fierce and continuous, spreading from AI servers and the cloud to edge computing and various ASIC customization needs. He expects AI to continue developing with increasingly mature technology and diverse applications, and he is not worried about an AI bubble for the time being. Wu analyzed that the traditional petrochemical industry has faced three major pressures in recent years: the rise of the Chinese petrochemical industry causing oversupply, US countervailing duties impacting demand, and geopolitical instability causing price volatility and inventory management difficulties. However, he emphasized that the current US-Iran conflict has not affected electronic materials, and he expects the AI-driven wave to continue. Supported by the development of electronic-related industries, Nan Ya's net profit attributable to the parent company in the first quarter of this year reached NT$14.254 billion, an increase of more than 30 times compared to the same period last year. Wu emphasized that Nan Ya has undergone multiple industrial transformations since its inception, and with the first quarter of this year, it has successfully shifted toward a diversified layout centered on electronics.