Reassured Outlook on Second Half of Year by UIS
A Peek into United Internet's Ambitious Expansion Plans
By Lisa Wang / Staff Reporter
Taiwan-based United Internet Services Co (UIS, 漢唐), a leading player in the semiconductor manufacturing sector, is dollarin' on some major expansion shindigs, with an optimistic revenue outlook for the year thanks to skyrocketin' demand for cutting-edge chip-making facilities.
At a recent shareholder meetup in New Taipei City, UIS chairwoman Belle Lee (李惠文) shared the good news, mentioning growing partnerships with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on new 2-nanometer fabrication plants and advanced chip packaging facilities. This exciting collaboration comes at a time when artificial intelligence chips are hotter than a pepper sprout in the Sahara.
appear to be doubling down on their investment in the U.S., with UIS president Lai Chih-ming (賴志明) confirming proactive advancements in the construction of phase-two facilities. In fact, UIS has received new orders to kick-start work on these fabulous new facilities, with construction categories including clean room installations, mechanical and electrical engineering, specialized equipment setup, and gas and water piping system setup.
To keep up with this ravenous growth, UIS is beefin' up its US workforce, aimin' to nearly double its staff from 100 to around 200 employees. Most of the new hires will come straight from local communities to ensure a strong, collaborative environment.
But the UIS job train don't stop in the US. The company's also handleing clean room installations in Singapore for VisionPower Semiconductor Manufacturing Co Pte Ltd, a joint venture between contract chipmaker Vanguard International Semiconductor Corp (世界先進) and NXP Semiconductors NV.
Even though U.S. tariffs might cause a pinch in equipment and materials costs, such as steel tubes, UIS seems confident that the impact will be manageable. The reason? Those materials account for a mere fraction of their total construction costs.
The company's not too bent out of shape about foreign exchange rate volatility either. According to Lee, UIS isn't much of an export-oriented company, which means it maintains a meager position in USD.
Shareholders were all thumbs up at the go-ahead for a proposed cash dividend distribution of NT$28 per common share. This dividend represents a generous payout ratio of 85 percent, based on the company's earnings of NT$32.94 per share last year.
While the search results didn't provide specific details about UIS's revenue growth and expansion plans in the U.S., Japan, and Singapore, we managed to rustle up a few helpful insights about the company's overall activities.
United Internet (UIS) has witnessed mixed revenue growth over the past years, with a pleasant 12% rise in revenue over a three-year period[2]. Analysts predict a 3.2% annual revenue growth over the next three years, in line with the industry's projected growth of 2.3% per annum[2]. The company has been focusing on increasing its stake in 1&1, a vital subsidiary, aiming to raise its holding to 90% and heavily investing in network expansion, particularly in mobile networks[5]. However, detailed expansion plans for the U.S., Japan, and Singapore aren't covered in the available information[3]. For a more comprehensive understanding of UIS's operations in specific regions, additional research focusing on those markets would be a swell idea.
- In pursuit of their expansion plans, United Internet (UIS) is not only strengthening their presence in the United States with their investment, but also engaging in business collaborations with TSMC for advance technology projects such as 2-nanometer fabrication plants and packaging facilities.
- In an effort to cater to the rising demand, United Internet is proactively growing their workforce in the United States, aiming to double the number of employees working there from 100 to around 200. Additionally, they are also handling clean room installations in Singapore for VisionPower Semiconductor Manufacturing Co, highlighting their commitment to the Asian market as well.
