Domestic chip maker sees growing potential in 2022 auto market

Memory chip maker Mosel Vitelic Inc. is looking to expand business operations into the automotive market by increasing deliveries to 25% from 20% in 2021.

Chairman Rebecca Tang and Vice General Manager Deng Chih-da were present at the investor's conference on Wednesday afternoon. Tang said the company enjoyed a steady growth last year due to the global chip shortage, rounding up total revenue at NTD$1.952 billion and marking a yearly increase of 5.7%. Net income attributed NTD$245 million to the company's parent company, marking a year-on-year growth of 11.4%.

Deng said while Mosel Vitelic reached full production capacity in early 2021, Taiwan's drought-caused water shortages in the following months had cut into the company's profits, with a monthly revenue reported at around NTD$130 million. Deng said their factories resumed entire operations once the drought was resolved and was able to bolster monthly income to NTD$170 million.

The semiconductor industry often carries out a year-end inventory check in the past, with pull order volume gradually lessening at the end of the year. However, Deng pointed out that the demand in the fourth quarter last year remained significantly stronger than their previous years, bringing in around NTD$180 million in November and NTD$174 million in December.

While Mosel Vitelic maintained a low-volume production of automotive-use products in 2020, the company began increasing its production scale to 10,000 per month in 2021, focusing on areas such as windshield wipers, auto lamps, and three-axis motors for vehicle seats.