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Leedon's September Revenue Drops 12% Amid Component Shortages
Producer Manufacturing · Auto Parts: OEM · economic_daily · 2026-10-07
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Automotive parts manufacturer Leedon reported a 12% year-on-year revenue decline in September, citing supply chain constraints caused by high demand for AI components.
What Happened
Revenue Performance and Supply Constraints: Leedon reported a consolidated revenue of NT$537 million for September 2026, a 12.08% decrease year-on-year, with cumulative revenue for the first three quarters reaching NT$5.536 billion. The decline is attributed to supply chain competition, as critical automotive components like chips and PCBs were diverted to meet the surging demand from the AI sector.
Supply Chain Mitigation Strategies: In response to the shortages, Leedon is actively coordinating with its supply chain to secure alternative sources for critical components. The company is also negotiating delivery schedules with clients and discussing the allocation of additional costs incurred by the supply chain disruptions to protect its margins.
Operational Outlook and Order Visibility: Despite the short-term impact on delivery capacity, Leedon maintains that its long-term operational outlook remains stable. Order visibility remains unchanged, indicating that the underlying demand for its automotive products remains robust and the current supply issues are not expected to have a material impact on long-term operations.
Industry Context: This situation highlights the ongoing resource allocation challenges within the global electronics supply chain, where automotive electronics face competition for capacity from the high-priority AI sector. Leedon continues to optimize its supply chain management to navigate these industry-wide fluctuations.