Transcom, Inc., a Taiwan-based IDM specializing in microwave semiconductor components and sub-system products, is seeing a steady growth momentum for 2023. As Taiwan's only IDM focusing on compound semiconductors, Transcom has been riding on Taiwan's recent endeavor to build a resilient and self-sufficient defense industry.
According to Transcom's latest financial result, its April revenue was NT$145 million (US$4.73 million), a 65.7% growth compared to March. First-quarter 2023 revenue was NT$2.22 million, a year-on-year growth of 17.82%.
Transcom's power amplifiers (PA) can be found within Taiwan's domestically developed missiles, such as the Tien Kung series of anti-ballistic and anti-aircraft missiles, the Tien-Chien series of air-to-air missiles, and the Hsiung Feng series of anti-ship and surface-to-surface missiles. Expecting to progress further in the governmental defense tendering process, Transcom expects its PA shipment volume to gradually pick up in the second quarter, likely allowing the company to maintain a double-digit annual growth in revenue and profit in 2023. In the past three years, Transcom's defense-related shipments have also been maintaining a double-digit growth rate, and order visibility has extended to 2024.
According to sources, Taiwan's state-owned National Chung-Shan Institute of Science and Technology (NCSIST) contributes to approximately 80% of Transcom's revenues. NCSIST undertakes the designing and manufacturing of Taiwan's main weapon systems. Meanwhile, Israel is reportedly Transcom's main foreign customer, accounting for about 5% of the company's annual revenue.
Amidst rising tension in the Asia-Pacific region, as reported by Taiwanese media Business Today, the growth potential of Transcom has recently attracted investors like Norway's sovereign wealth fund, which is Transcom's third largest shareholder with a 2.58% stake.
Alongside defense-related products, Transcom is also broadening its reach into 5G base stations and low-earth orbit satellites via its mmWave power amplifiers.
