Catcher expects AI business to pick up
Catcher Technology Co expects AI server components to contribute 20% of its revenue in 2024, with growth momentum extending into next year, as chairman Allen Hung highlights expansion in chassis and power supply products for next-gen AI hardware. The company is diversifying manufacturing to Thailand and Vietnam while targeting aerospace, medical equipment, and AI robotics markets, aiming for a 30% gross margin this year.
Taiwan-based metal casing supplier Catcher Technology Co announced plans to increase revenue from AI server components, expecting them to account for 20% of total revenue in 2024. Chairman Allen Hung stated the company began small-volume shipments of AI-related products in the fourth quarter of 2023 and anticipates sustained growth, with AI server revenue potentially outpacing laptop casing revenue over the next three years. Catcher’s primary revenue source—computer chassis and metal casing—makes up about 80% of its total revenue, but the company aims to raise non-notebook product contributions to over 30% this year. AI-related shipments are projected to lift gross margins to 30%, up from 28.8% in the previous quarter. Beyond AI servers, Catcher is expanding into medical equipment components, semiconductor front-end tools, aviation engine parts, and drones. The company has secured AS9100 certification for aerospace applications and reported drone product certifications with international orders. It is also exploring AI robotics collaborations, though details remain undisclosed. Manufacturing operations are expanding beyond Taiwan and China to Thailand and Vietnam, with a $50 million facility in Thailand planned for consumer electronics components. Hung emphasized maintaining a dividend payout ratio of at least 60%, with shareholders approving a NT$10.15 per-share cash dividend, reflecting an 89.59% payout ratio based on last year’s earnings. The company’s diversification strategy includes precision components for aviation and drones, positioning it to capitalize on growing demand in AI-driven hardware and beyond. Hung noted that AI server demand is outpacing traditional laptop casing sales, reinforcing the company’s shift toward next-generation technology markets.
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