Technology giants such as Apple Inc. and Dell Inc. have used Delta Electronics Inc. to supply components for their personal computers for years, but the segment’s slump has led the supplier to also expand towards electric cars and industrial robots.
With Delta’s major contributor to the profit tally being the supply to desktop and notebook PC makers, the company has used its 20 years of research and development to gather much expertise in motors and sensors. With an estimated drop in demand for computers, Delta now has to broaden its appeal and has turned towards robotics and the emerging market of vehicle-charging – with the latter forecasted to tally around $2.9 billion. The company’s Power Electronics unit – which is the main supplier of power converters for computers, their related components and cooling fans – is now predicted to bring just 50 percent of total revenue by 2020, down from 60 percent in 2014. To mitigate the problem, they have pushed into factory automation, aiming to compete with Japanese rivals for a slice of the market in China.
Additionally, Delta has a division that provides components to General Motors and Tesla – namely electric motors, onboard battery chargers and power converters. The related electric vehicle products have totaled just $57 million in sales in 2014, but the mix is expected to grow after the company announced a contract this month to deliver charging stations to a Chinese partner – the business unit sales are expected to jump by as much as 30 percent in 2015 as a result.