Taiwan’s TECO Electric and Machinery accelerates its global growth strategy, focusing on power grids and AI infrastructure. The company targets generating more than half of its revenue from overseas markets. At a recent shareholders’ meeting, Chair Li Ming-hsien outlined key plans to achieve this goal. First, TECO focuses on high-growth sectors like resilient power grids and data centers. Li emphasizes these areas because they match global demand trends. The company establishes a regional general manager system to improve operations across China, Southeast Asia, North America, and Europe.
Currently, overseas sales account for less than half of TECO’s revenue. However, Li expects the company to exceed that mark soon. North America offers significant growth potential due to new tariff structures and rising demand for AI and grid resilience infrastructure. These factors drive TECO’s expansion efforts. Additionally, TECO expands its presence in Southeast Asia. It actively grows operations in Singapore, Vietnam, and the Philippines. This regional integration strategy enhances coordination with headquarters and speeds up business growth in these markets.
Li admits tariffs, interest rates, and currency fluctuations create regular business costs. He notes these factors reflect broader policy impacts worldwide. Although some buyers delay purchases due to trade uncertainty, TECO’s low exposure to foreign currency risks and its hedging strategy keep earnings stable. TECO also increases transformer production capacity to meet growing demand. CEO Kao Fei-yuan announces that the Zhongli plant in Taoyuan will start a new high-voltage transformer line soon. The company plans to reach full production capacity within about a year. Furthermore, TECO plans to open a new plant at the Guanyin site to generate annual output worth NT$1 billion (approximately US$33.34 million).
The Zhongli plant already produces utility-grade transformers. Kao expects Taipower to grant certification soon, which will boost TECO’s power grid market position. In summary, TECO Electric and Machinery drives its global expansion through power grids and AI infrastructure. By targeting these sectors and streamlining regional operations, TECO aims to push overseas revenue past 50%. With new production lines and growing presence in key regions, the company prepares for sustained growth.
