Wi-Fi chip demand will remain strong in second half of 2022: Realtek

Realtek said demand for Wi-Fi and other networking chips will remain strong in the second half of 2022 despite weak demand from consumer electronics applications. According to Taiwanese media “Electronic Times“, Realtek pointed out that customers continue to adjust inventory levels and strategies.

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The company expects inventory levels to continue to rise in the third quarter but remains cautiously optimistic about operations in the second half of the year, which is expected to be better than the first half.

It is reported that Realtek’s revenue in the second quarter reached NT$30.5 billion, a quarterly increase of 2.5% and an annual increase of 18%. The Taiwan dollar decreased by 12.9% quarter-on-quarter and increased by 16.6% year-on-year.

Regarding the reason for the decline in gross profit margin in the second quarter, Realtek believes that it is due to the increase in upstream foundry costs, which is expected to continue in the short term. However, the company remains confident in its long-term profit margins.

Previously, Realtek said that Wi-Fi 6 wireless network chips gradually replaced Wi-Fi 5 in the PC and router market last year, and it is expected to become the mainstream specification this year. In addition to improving the design and opening of Wi-Fi 6 and Wi-Fi 6E, it will also work on the development of Wi-Fi 7 products.