Sales of Nexcom's H2 products remain stagnant due to worldwide turmoil and instability.
In the ever-changing landscape of international business, Nexcom International Co, a Taiwanese electronics manufacturer, has faced challenges in the second half of 2023. Despite a 34.73% year-on-year increase in first-half revenue to NT$3.133 billion (US$106.6 million), the company anticipates flat revenue growth in the second half due to geopolitical uncertainties and foreign-exchange fluctuations.
The COVID-19 pandemic aftermath, US-China trade tensions, currency volatility, and regional conflicts or political instability are common issues that international companies like Nexcom may encounter. However, the exact impact on Nexcom International Co’s revenue growth in the second half of 2021 remains unclear from the available search results.
One of the significant challenges for Nexcom has been the sharp appreciation of the New Taiwan dollar against the US dollar. This appreciation negatively impacted the company's second-quarter performance more than US tariffs. To offset foreign-exchange losses, Nexcom raised prices for small and medium-sized clients but could not immediately adjust pricing for larger clients due to long-term contracts. Each NT$1 gain in the New Taiwan dollar cuts Nexcom's gross margin by 5 percentage points due to receivables in tens of millions of US dollars.
In an effort to navigate these challenges, Nexcom did not use hedging tools for foreign-exchange risks, citing unpredictable market and global economic fluctuations.
Meanwhile, Nexcom's robotics subsidiary, NexCOBOT, continues to make strides in the robotics industry. NexCOBOT is working with Synapticon GmbH to develop a functional safety robot joint module and with Nvidia Corp to integrate its first-generation artificial intelligence (AI) model into its robotics module. NexCOBOT also receives robot module orders from customers in Taiwan, the US, Europe, China, India, and Japan.
Looking ahead, NexCOBOT expects to deliver small-volume orders of 100 to 200 units of the product per month in the first half of next year, with mass production likely in the second half. The company is also developing a second-generation system with Nvidia, with the new module to be unveiled next month.
Despite the challenges, Nexcom is not considering building new plants in the US or Southeast Asia as it has not felt significant pressure, and information technology products typically face zero tariffs.
As we move forward, the focus for Nexcom International Co remains on navigating the complexities of the global market while continuing to innovate and grow in the robotics sector.
The industry-specific challenge for Nexcom International Co, the Taiwanese electronics manufacturer, is the sharp appreciation of the New Taiwan dollar against the US dollar, which negatively impacted the company's second-quarter performance and cuts their gross margin due to receivables in tens of millions of US dollars. In an attempt to counteract foreign-exchange losses, the company has raised prices for smaller clients but has been unable to adjust pricing for larger clients immediately due to long-term contracts. On a more positive note, Nexcom's robotics subsidiary, NexCOBOT, is succeeding in the robotics industry and collaborating with Synapticon GmbH and Nvidia Corp to develop innovative robotics modules.
