Shihden: Five Growth Drivers Including AIDC to Push Revenue and Profits to New Highs

(CNA reporter Chung Jung-feng, Hsinchu, June 17) Shihden General Manager Joseph Kuo said today that the company expects five major growth drivers this year: Taipower's power infrastructure construction, energy transition, Artificial Intelligence Data Centers (AIDC), North American exports, and transportation and public construction turnkey projects. Shihden aims for double-digit percentage growth in both revenue and profit this year, with potential to reach record highs.

Shihden held its shareholders' meeting this morning in Hsinchu, which concluded after approximately 30 minutes. Afterwards, co-General Managers Joseph Kuo and Cheng Hsiang-chih held a media briefing.

Looking ahead to overall operations for this year and the second half, Kuo noted that the heavy electrical industry outlook remains promising. Shihden anticipates continued growth from Taipower's resilient grid initiative and domestic semiconductor manufacturing projects—including foundry, packaging and testing, and memory facilities. Additionally, surging power demand from AI data centers (AIDC) and North American infrastructure projects is expected to sustain growth momentum over the next 5 to 10 years.

Regarding Taipower's resilient grid power construction, Kuo stated that demand for power-grade transformers remains strong. Shihden has secured two Static Synchronous Compensator (STATCOM) projects in Southern Taiwan Science Park (STSP) and Longtan. The STSP project is currently undergoing trial operation in line with the utility's schedule, with approximately NT$1 billion expected to be recognized in the second half. The Longtan project is progressing according to schedule, with partial revenue recognition possible by 2027.

On energy transition, Kuo said the company continues to expand into both front-of-meter and behind-the-meter energy storage projects. For behind-the-meter storage, Shihden, along with corporate shareholders Phison Electronics and GIGABYTE, has invested in energy provider Apollo Power. Shihlin Electric holds approximately 8.75% of the shares.

Regarding the AIDC supply chain, Kuo noted that Shihden holds a 70% market share in power equipment transformers for Taiwan's high-tech semiconductor manufacturing sites. The company continues close collaboration with semiconductor wafer, packaging, memory, server, and substrate manufacturers to capture business opportunities.

On the AI server liquid cooling thermal management supply chain, Shihden said it continues to partner with system manufacturers and has already supplied controllers and drivers.

For North American AIDC infrastructure construction, Kuo said the company's visibility this year is better than in previous years. Shihden expects growth in the U.S. market to reach 30% this year. By 2025, overseas sales are projected to account for 15% to 20% of total revenue, with this year's ratio expected to rise to 25%. Currently, North American AIDC-related orders account for about 30% of Shihden's total order book.

In transportation and public construction turnkey projects, Shihden continues to secure contracts for electrical systems at locations including Taoyuan Airport, Tainan Airport, and Taiwan Railways, and has won a power plant project in Matsu.

Regarding the fourth transformer plant, Kuo said the first-phase investment is NT$1.3 billion, with a future planned investment of NT$900 million to adjust equipment capacity based on actual order conditions. The fourth plant is scheduled to begin operations in September 2027 and reach full capacity by 2028, increasing transformer production capacity by another 30%. It will primarily focus on large and power-grade transformers. To meet the massive power distribution demands of AI data centers, the company does not rule out building a fifth plant. (Editor: Chang Chun-mao) 1150617