Getac chairman James Hwang. Credit: DIGITIMES

Rugged PC maker Getac has seen a strong influx of orders associated with a major US government project in the second half of 2022, and expects the order momentum to carry on into the first half of 2023.

Despite global notebook shipments estimated to fall 20% in 2022, the world's top-3 rugged computer vendors Panasonic, Dell and Getac continue to enjoy stable shipments for vertical market applications, according to industry sources. In particular, the sources continued, their shipments are being further bolstered by the US federal government reactivating a major rugged computer procurement project starting the second quarter of 2022.

Besides orders for the US government project, Getac has also seen stable order placements from auto repair shops, large-size logistics operators, and even police stations in the country, the sources said.

Getac chairman James Hwang said the company is also gaining presence in Kenya and other developing countries for its rugged computing solutions.

Hwang noted Getac's revenue results for 2022 will be split at 46:54 between the first half and the second half, with stronger demand for rugged computers and car-use mechanical components expected for the rest of the year.

As a holding company, Getac now also has several subsidiaries engaged in components production, including: MP Solution dedicated to precision composite mechanical parts for rugged computers and other applications; Getac Precision Technology for supplying automotive parts and components made of magnesium alloy and aluminum alloy; and NAFCO specializing in aerospace fasteners.

Getac's first-half 2022 revenues only edged up 0.9% on year to NT$15.04 billion (US$501.43 million), due mainly to its April sales plunging 50% on COVID lockdowns in eastern China.

But Hwang said the company's total revenues for the year will still meet its original annual growth projection of 8-12% thanks to strong shipments of rugged computers and automotive components in the second half. He stressed similar revenue growth momentum will last for 3-4 years.

Hwang indicated the global car market is picking up significantly in the second half of the year, and its annual shipments of automotive mechanical components will grow by a high double digit in 2022. Getac is now the world's largest supplier of car seat-belt fasteners with a global market share of 40%, and is also actively developing new product lines associated with ADAS (advanced driver assistance system) solutions.

Getac will be gradually shifting its production of composite mechanical components, mainly for notebooks, to a new plant in China's Chongqing from existing production site in Kunshan, China, and the new fab will start commercial production in the third quarter of 2023, according to Hwang.

He noted the company will enforce capacity expansions at its plant in Vietnam to better serve the demand for mechanical components by Taiwan's major electronics devices ODMs with manufacturing operations there.