WT Microelectronics and WPG Holdings See a Drop in October Revenue ！

01WT Microelectronics and WPG Holdings Both See MoM Decline and YoY Growth in Revenue

Chip distributors WT Microelectronics and WPG Holdings announced their October performance on November 10. Both companies recorded a slight month-over-month decline but achieved double-digit year-over-year growth. Meanwhile, WT Microelectronics reported its second-highest single-month revenue on record.

Specifically, WT Microelectronics' October consolidated revenue reached NT$126.885 billion, representing a month-over-month decrease of 5.97% and a year-over-year increase of 28.69%, marking the second-highest historical performance.

WT Microelectronics forecasts that, based on an exchange rate of 1 USD to 30.6 TWD, the median consolidated revenue for the fourth quarter is estimated at NT$305 billion, a year-over-year increase of 17%. The median operating profit is estimated at NT$5.97 billion, up 42% year-over-year, while the median net profit after tax is projected at NT$3.75 billion, a 48% year-over-year increase. The gross margin is expected to range between 4.1% and 4.2%.

Additionally, WT Microelectronics' subsidiary Future reported a year-over-year increase in its third-quarter performance and anticipates that its fourth-quarter operations will remain flat compared to the previous quarter. The company expects the market to continue its recovery into next year.

Regarding downstream markets, WT Microelectronics noted that although the automotive electronics sector still faces some inventory digestion this year, the overall situation has stabilized. Fourth-quarter revenue for this segment is expected to grow by a low-single-digit percentage quarter-over-quarter. For the industrial and instrumentation sector, as Europe and the United States enter their off-season, a low-single-digit quarter-over-quarter decline is anticipated in the fourth quarter, though the year-over-year growth trend remains intact. In the data center and server segment, strong customer pull momentum in the third quarter is expected to moderate in the fourth quarter due to alignment with customer delivery schedules, leading to a slight quarter-over-quarter decline. However, significant market demand growth is projected for next year. Consumer electronics, personal computers, and mobile phones have entered their traditional off-season, with expected quarter-over-quarter declines of approximately 10% and mid-single-digit percentages, respectively.

WT Microelectronics Chairman Cheng Wen-tsong stated that AI-related semiconductor demand has significantly increased in the second half of this year, reflecting in the company's performance. He remains optimistic about next year's market outlook, believing that based on the data center construction plans announced by major cloud service providers (CSPs), demand for AI semiconductors will continue its strong growth momentum into next year.

Benefiting from the rapid development of generative AI, which has driven iterative upgrades in related traditional and AI servers, power supplies, PCs, notebooks, and memory storage, as well as increased demand for electronic components, WPG Holdings reported October revenue of NT$83.39 billion. This represents a month-over-month decrease of 6.4% but a year-over-year increase of 11.4% compared to NT$74.83 billion in the same period last year.

In October, WPG Holdings indicated that its optimistic outlook remains centered on AI-related areas, spanning from cloud servers to edge devices such as mobile phones, computers, robots, and autonomous vehicles. This robust demand momentum is expected to continue through 2026.

02 WPG Holdings' First 10 Months Revenue Exceeds Full-Year 2023; Dachunglian Grows 14.3% YoY

As of the first ten months of this year, Winsupply's cumulative operating revenue reached 962.747 billion yuan, a year-on-year increase of 20.93%, which has exceeded the full-year revenue of last year.

                                             WIN Semiconductor's monthly revenue summary for 2025;Source: Yahoo! Stocks

WT Microelectronics recently released its latest third-quarter financial report, showing a significant revenue increase to NT$328.9 billion, representing a year-on-year growth of 25.9% and a quarter-on-quarter increase of 26.8%. This robust performance was primarily driven by strong shipment momentum for AI application-related products, coupled with the smartphone industry entering its traditional peak season, leading to a noticeable seasonal demand recovery that collectively boosted overall operational performance.

It is particularly noteworthy that the revenue contribution from data centers and servers at WT Microelectronics rose significantly in the third quarter, jumping sharply from 36% in the second quarter to 48%. Revenue in this segment grew 69% quarter-on-quarter and 75% year-on-year, highlighting the soaring demand for AI application-related products.

                                                                                    Source: Wen Ye's Q3 2025 Earnings Conference

In addition to the notable growth in its data center and communications businesses, the synergistic benefits from the acquisition of Canadian distributor Future Electronics are gradually materializing. The company stated that Future has achieved sequential revenue growth for four consecutive quarters from Q4 last year to Q3 this year, with the third-quarter increase reaching a mid-to-high single-digit percentage. This was primarily driven by inventory replenishment and demand recovery in the European and American markets, while gross margins remained stable. Future primarily serves small and medium-sized electronics manufacturers in Europe and America, complementing WT Microelectronics' existing customer base of large brands and system integrators. The integration has expanded channel coverage, enhancing WT Microelectronics' global supply chain management and operational flexibility.

Looking ahead at AI-related applications, WT Microelectronics noted that current AI demand spans multiple areas, including ASICs, networking, and power management, with broad sales coverage and a positive growth trend.

For WPG Holdings, the cumulative revenue for the first ten months of this year reached NT$827.14 billion, representing a year-on-year increase of 14.3% compared to NT$723.78 billion during the same period last year.

                                             Summary of WPG Holdings' monthly revenue in 2025; Source: Yahoo! Finance

WPG Holdings reported third-quarter revenue of NT$244.47 billion (US$7.908 billion). Excluding foreign exchange impacts, the third quarter set a new all-time high for quarterly revenue, primarily benefiting from the rapid development of generative AI. This drove iterative upgrades in related traditional and AI servers, power supplies, PCs, notebooks, and memory storage, along with increased demand for electronic components.

WT Microelectronics achieved robust year-on-year and quarter-on-quarter revenue growth exceeding 25% in the third quarter, moving closer to its annual revenue target of surpassing NT$1 trillion. However, WPG Holdings experienced a single-digit decline in third-quarter revenue growth, indicating some moderation in momentum.

Earlier, WPG Holdings had expressed a relatively cautious outlook for the second half of the year. During its August investor conference, the company noted that as the second quarter performed stronger than typical off-season trends, the traditional peak season in the third quarter appeared less robust compared to previous years. Looking ahead to the second half of the year, WPG Holdings indicated that due to uncertainties surrounding tariffs and related regulations, order visibility remains unclear. Nevertheless, the company continues to express optimism about the AI-related market, emphasizing that the demand momentum is strong and is expected to persist until 2026.

According to the latest financial reports for the first three quarters, the revenue performance of the "Two Ws" (WT Microelectronics and WPG Holdings), particularly that of WT Microelectronics, remains strong compared to the "Two As" (Arrow Electronics and Avnet). In terms of revenue scale for the first three quarters of this year, WT Microelectronics led with cumulative revenue of US$27.037 billion, followed by WPG Holdings with US$24.059 billion (conversion from NT dollars to US dollars is subject to exchange rate fluctuations, and the data may have some margin of error). Arrow Electronics and Avnet reported revenues of US$22.107 billion and US$16.830 billion, respectively.

This year, WT Microelectronics has further solidified its position as the global leader among chip distributors. However, as the "Two As" gradually regain growth momentum amid the ongoing recovery, the real competition may have only just begun.