Fortune Electric: AIDC Transformer Orders Exceed NT$20 Billion

(Central News Agency, reporter Chung Jung-feng, Taoyuan, 12th) Heavy electrical equipment manufacturer Fortune Electric's General Manager Hsu Yi-Te said today that overall order visibility extends to 2029, and the proportion of export sales in the first four months of this year rose to 66%. Currently, orders on hand for artificial intelligence data centers (AIDC) exceed NT$20 billion, and it is estimated that AIDC revenue will account for over 15% of total revenue this year.

Hsu also revealed that Fortune Electric is continuously bidding for related AIDC application projects from Taiwan's National Center for High-performance Computing, and is also vying to supply transformers for the AIDC project in Kagoshima, Kyushu, Japan, with the situation potentially becoming clearer in the second half of the year.

Regarding this year's operations, Hsu assessed that Fortune Electric's first-half performance will grow compared to the same period last year, and the second half will outperform the first half. He remains optimistic about US infrastructure and AIDC application shipments, stating that revenue will continue to grow this year. Semiconductor fab expansion and AIDC construction, Taiwan Power Company's (Taipower) grid resilience plan, and the export market for foreign power infrastructure construction are Fortune Electric's three major growth drivers.

Fortune Electric held its shareholders' meeting at its Zhongli headquarters in the morning, completing the agenda in about 30 minutes. The board of directors was fully re-elected, and Hsu spoke to the media after the new board meeting.

Hsu estimated that exports accounted for 66% of Fortune Electric's total revenue in the first four months of this year, and the full-year export ratio is expected to exceed 60%. Currently, the total order backlog for AIDC power transformers exceeds NT$20 billion, and AIDC is expected to account for over 15% of Fortune Electric's total revenue this year.

Hsu stated that Fortune Electric's AIDC shipment value could reach NT$4 billion to NT$5 billion this year, still primarily targeting the US market. US-based cloud service providers (CSPs), fearing underinvestment, are making large-scale capital expenditures, planning to enhance their power infrastructure to support the performance of training and inference computing power models.

Hsu said that Fortune Electric's Guanyin Third Plant Building B began commercial operations in the first quarter of this year, mainly producing medium-sized power transformers for both domestic and export markets. The original Guanyin Second Plant will then focus on producing large power transformers.

Analysts estimate that Fortune Electric's Guanyin Third Plant Building B will contribute over NT$1 billion in revenue this year, over NT$3 billion in 2027, and over NT$4 billion in 2028.

Regarding the expansion of the Taichung plant, Hsu said construction started this year, with completion expected by the end of the second quarter of 2027 and production starting in the third quarter of 2027. The plant will mainly produce ultra-high voltage, large-capacity power transformers for both domestic and export markets. Future production capacity at the Taichung plant is expected to double, with an estimated expansion investment of about NT$2.5 billion.

Fortune Electric explained that the Taichung plant can produce 500kV-class transformers, making it the largest power transformer production base in Southeast Asia. Over 90% of the Taichung plant's output is for export, and it has also applied to supply transformers needed for Taipower's grid resilience plan.

Looking at overall order visibility, Hsu said current order visibility extends to 2029, and the order intake rate continues to increase. The impact of tariffs is diminishing. Fortune Electric is allocating scarce labor hours and materials to high-margin product orders, avoiding large turnkey projects to cope with market labor and material shortages and tariff fluctuations.

Regarding future orders, Hsu said Fortune Electric continues to focus on the four key elements of QCDS: quality, cost, delivery, and service. Currently, the ability to accept orders mainly depends on delivery times. The average delivery time for Fortune Electric's products is currently over 2.5 to 3 years. Fortune Electric will continue to actively provide transformers needed for Taipower's grid resilience plan and strive to shorten delivery times for Taipower. (Editor: Chang Chun-mao) 1150612