Sarah Wu and Ben Blanchard

TAIPEI (Reuters) – Taiwan’s Delta Electronics Inc. is a supplier power components for companies like Apple Inc (NASDAQ 🙂 and Tesla Inc (NASDAQ 🙂 Inc. It announced Friday that it was expanding manufacturing in response to a boom of electric vehicles and servers.

Cheng Ping CEO, buoyantly commented on an earnings call for the first quarter, that his company is building new factories in Taiwan China India Thailand, Taiwan, China, India and Thailand, as well as looking at new locations in the United States of America and eastern Europe.

He said that “We’re building capacity all over,” after reporting 14% growth in first-quarter sales to T$82.5 Billion ($2.81 Billion). The quarter’s gross profit was T$22.5billion, an increase of 4%.

Chairman Yancey Ha said that the company produces 60% of its products in China and was experiencing strong demand for electric cars, servers, and data centers.

He added that more traditional automakers, such as Ford Motor (NYSE) Co, than Tesla, are experiencing a surge in EV sales. This trend will be beneficial for Delta.

Our auto department works very late and often overtime. I ask them often to get home earlier. You’ll still be here for many years, not just one quarter.

Hai explained that Delta’s ability to ship goods from China has been affected by COVID-19 lockdowns.

Hai spoke out about EV supply chain problems, saying that “if you don’t have any materials the car factory won’t work.” Delta is owned by Singapore’s government and makes products that regulate the flow of electric power. These devices include personal computers, servers, smartphones, chargers, and laptops. The key component of the global supply chain for Taiwan, Taiwan’s tech companies have seen a boom in demand for laptops, tablets and other devices during the COVID-19 epidemic, when millions were forced to study and work from home.

Major markets may be returning to pre-COVID life but electric cars, high-end computing, and 5G demand are still supporting a variety of Taiwanese technology firms like TSMC, the chipmaker.

Delta’s share price has fallen by 9% in the first half of this year. It now trades at $21.76 billion. The shares closed down 1.4% Friday, against a 1.1% gain for the larger market.

($1 = 29.4030 Taiwan dollars)