With new energy and semiconductor components as its two major operating engines, Taiwan's Win Win Precision Technology is looking to advanced light storage and smart energy management solutions, as well as semiconductor innovations to bolster its growth momentum in 2024 and beyond, according to chairman Davis Chen.
Chen said that new energy accounts for 80% of Win Win's revenue, compared to 20% for semiconductor components and consumables. The company has seen its new energy business advance from customized solar roof construction to light storage design and installation and has also developed smart energy management systems with refined algorithms.
Win Win operates a solar module brand channel, focusing on the manufacturing, design, and installation of rooftop solar energy solutions. Its cumulative installation capacity has reached an impressive 20 gigawatts so far, with 70% of installations done in Europe, Chen disclosed.
With Chinese-made solar modules dumped at low prices in the European market in 2023, market prices there have fallen by around 60% since the second half of that year, making Win Win face inventory losses in the past two quarters. However, Chen noted that European market quotations have stabilized, and continuous shipments of modules from other regions to Europe indicate the market's "stomach capacity" is larger than expected.
In recent years, the European Union has taken significant steps to promote the widespread adoption of green power by relaxing land use restrictions, and some countries even allow cross-border transmission of green electricity, significantly stoking demand for large-scale power generation. However, to address challenges such as limited transmission capacity and avoid wastage of solar power generated at noon time, it is imperative to incorporate energy storage solutions, with a target of 20% green electricity storage.
Accelerating transformation efforts
This has prompted Win Win to accelerate its transformation efforts and invest in developing large-scale solar power plants in Germany and Romania. The company leverages advanced light storage and energy management technologies to secure green power purchase agreements (PPA) that align with the expected investment return rates (IRR) of customers. This strategic move is expected to spur significant growth in the sector, with tangible results to emerge by the end of 2024 or 2025, according to Chen.
Win Win has been actively engaged in the US market for about 12 years, albeit with interruptions caused by the US-China double anti-dumping measures. In August 2023, the US introduced the Inflation Reduction Act (IRA), and its tariff exemption for modules from Southeast Asian countries will expire in June 2024. Chen sees this as a reemergence of business opportunities and is striving to meet US manufacturing requirements and reconnect with old American clients. However, there remain several factors to monitor closely, such as the specifics of IRA subsidies following the waiver expiration and the upcoming presidential election.
Regarding semiconductor components and consumables, Chen highlighted how Win Win has evolved into an indispensable partner for semiconductor clients, accompanying them through the intricate manufacturing processes spanning from 7nm and 3nm down to 2nm technologies. The company collaborates closely with its customers, offering tailored design, development, and supply services to meet their evolving needs.
With a portfolio boasting 20,000 diverse components, Win Win primarily caters to the requirements of wafer fabs and memory manufacturers, extending its support from ion implantation to chemical vapor deposition equipment.
In recent years, the company's semiconductor revenue has enjoyed a stable annual growth rate of 8-10%, fueled by an expanding customer base, with key markets concentrated in Europe and Japan.
