Transcom, Taiwan's only compound semiconductor IDM and a major power amplifier (PA) supplier to defense sector, announced its revenue for June 2023 reached a record high of approximately NT$131 million (US$4.2 million). Transcom also sees its order visibility extending to the second half of 2024.
According to Transcom, which counts Norway's sovereign wealth fund as its third largest investor, revenue for the first half of 2023 reached NT$567 million (US$18.2 million) - a significant growth of 20.79% compared to the same period last year. The growth is mainly attributed to the rising shipment volume in the second quarter as a result of government orders. It is estimated that performance in the second half of the year will maintain a steady growth momentum.
Sources indicated that 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. Transcom's power amplifiers 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.
The IDM noted that the shipment volume of PA modules and subsystems has maintained a double-digit annual growth rate over the past three years, and the order visibility for Taiwan's defense and military-industrial products extends to the second half of 2024. Meanwhile, foreign defense orders are gradually returning as well. Transcom noted that shipment to military customers in Israel, Europe, the United States, and Asia-Pacific countries is expected to significantly rebound in 2023.
Apart from the defense sector, Transcom is also expanding into the commercial market in 2023. The company is promoting its independently developed 28GHz mmWave power amplifier geared for 5G small cell base station and Low Earth Orbit (LEO) satellite markets. Currently, there have been small-volume shipments to domestic and international customers.
