Power logic sees graphics card demand pick up

By Power Integrations 113

Power logic sees graphics card demand pick up

1.  Power logic sees graphics card demand pick up      


Cooling fan manufacturer Power Logic saw orders for graphics cards increase significantly in the second half of 2019, and expects orders to grow until 2020.


In order to meet orders and seek higher operational efficiency, Power Logic has leased a new plant in Jiangxi, China, and will begin trial production in the country in the first quarter of 2020, striving to increase its capacity by more than 20% by 2020.


Following the release of the GeForce RTX 2060 Super, 2070 Super and 2080 Super, Nvidia has begun releasing the latest GeForce RTX 1660 Super to various channels, and the GeForce GTX 1650 Super is currently in trial production, ready for January 2020. Officially released, according to industry news.


According to sources, the share of AMD's latest products in the discrete graphics market has also increased from the initial 20% to the current 30%.


According to Vincent Hsu, chairman of the company, 80% of Power Logic's current revenue comes from gaming cooling fan modules, and orders for the graphics card player's GTX 1660 Super and Radeon RX 5500 series are increasing.


Affected by the divergence of digital currency mining, Power Logic has experienced weak sales for five consecutive quarters since the second quarter of 2018, but achieved a combined revenue of NT$356 million ($11.67 million) in the third quarter of 2019. The growth rate was 62.48%, an increase of 46.35%.


With increasing capacity and good yield control, Power Logic's gross margin climbed to 32% in the third quarter of 2019, an increase of 18pp from the previous quarter, and its net profit increased by 643% from the previous quarter.


Power Logic plans to gradually shift its production capacity at its existing two plants in Dongguan, China, to a new Jiangxi plant with more production space. The reduction of the minimum minimum wage in Jiangxi will also make the company more competitive in the market.


In general, in addition to gaming products, Power Logic has been actively expanding new businesses, including home appliances, 5G base stations, servers and in-vehicle equipment. The company has already begun shipping products for home appliances in early 2019, while server product shipments are expanding and have the opportunity to contribute 5% of the company's revenue by 2020. Power Logic's 5G base station cooling fan products will be released in 2020.