Delta Thailand CEO’s 2024 H2 Updates on Business Growth and Direction

By Victor Cheng - Published July 17, 2024

From a recent interview with Bangkok Post with Mr. Victor Cheng, Delta Thailand CEO

Sawatee Krub! Hello to everyone at Delta Thailand! As we enter the second half of the year, we expect good growth due to improving global electronics demand and the company’s comprehensive product mix and momentum from ongoing expansion and geopolitical diversification. Delta's businesses related to datacenters, telecom power and EVs are well positioned. While the rapid growth of datacenter and server power business has plateaued, companies are building artificial intelligence (AI) factories to handle large data, leading to datacenter upgrades and market transitions.

In 2023, Delta Thailand had record revenue of $4.1 billion, a 23% YoY growth, despite a softer growth momentum towards the last quarter due to cautious EV power business demand and looming global recession concerns. Although the company’s revenue and gross margin were softer in the first quarter, Delta believes products related to electric vehicles (EVs) and datacenters could boost growth in the latter half. Around 30% of its revenue is related to EVs with a similar portion from datacenters. Meanwhile, revenue contribution from AI data centers is rising to a double-digit percentage in 2024, up from single digits last year.

Delta Thailand continues its focus on solutions for trends such as e-mobility, networking and datacenters, ICT and energy infrastructure, and automated technology for industrial applications and smart cities. In terms of financial strategies, Delta strives for a healthy revenue mix of high-margin product lines while controlling operating expenses. For example, Delta's EV-related business reached profitability last year and the company will strive for further cost optimization through larger-scale production as demand grows.

Earlier this year, Delta Electronics Thailand received the Prime Minister’s Best Industry Award 2023, which is the highest honor above all other Prime Minister’s Industry Award categories given to only one select company each year. In addition, Delta Thailand joined as the only company from Thailand in the first Fortune Asia Future 30 list. Developed in collaboration with Boston Consulting Group (BCG), the Fortune Asia Future 30 is a list of thirty companies from the Asia Pacific region identified as innovators built for growth.

In addition to its financial achievements, Delta Electronics Thailand was included in the prestigious S&P Global Sustainability Yearbook 2024 for outstanding Environmental, Social and Governance (ESG) performance. Delta Thailand is the only Thailand-based company in the “Electronic Equipment, Instruments & Components” sector of the Sustainability Yearbook 2024.

Finally, I want to affirm that Delta Thailand remains committed to sustainable growth, ESG performance, and continued excellence in the global electronics industry. The company is preparing to meet future demand by expanding manufacturing capacity, building new plants, upgrading facilities and developing skilled talent. These investments support our RE100 target of 100% renewable energy in all operations by 2030.

Yours sincerely,

Mr. Victor Cheng
CEO, Delta Electronics (Thailand) PCL.