Podcast Summary

Delta Electronics: Taiwan’s Power Supply Giant

Podcast: Asianometry
Host: Jon Y
Episode Date: January 4, 2026

Overview:

This episode explores the remarkable journey of Delta Electronics, Taiwan's third largest and most valuable tech conglomerate after TSMC and Foxconn. The story traces the company’s origins, technological pivots, global expansion, adaptation to industry changes, and its current role at the forefront of AI data center power solutions. Through the lens of founder Bruce Cheng’s life and vision, Jon Y delves into how Delta became a foundational—but often quiet—giant in global electronics.

Key Discussion Points & Insights

The Roots of Delta Electronics

• Bruce Cheng’s Early Life:

  • Born in 1936 in Fujian, China. Family fled the Japanese war to rural Shuiji; later, Cheng moved to Taiwan due to the Chinese Civil War.
  • After tough years as a struggling graduate and young worker, he gained crucial experience at AirAsia (not the airline) and TRW, an American electronics firm.

• Founding of Delta Electronics:

  • Sparked by encouragement from Datong (Taiwan’s top electronics company in the 1970s) and a chance discovery of an affordable factory site, Bruce Cheng created Delta Electronics in 1971.
  • “Bruce, having before heard what foreigners at TRW said about Chinese workmanship, pushed hard to meet international standards of quality.” (06:13)

• Early Focus and Survival:

  • Initial products: coils and intermediate frequency transformers (IFTs) for Taiwan’s TV manufacturing boom.
  • Survived economic headwinds (1970s oil crisis) with orders from foreign companies like RCA and Philips.

Delta’s Rapid Expansion and Product Diversification

• Pivoting Beyond TV Coils:

  • With US and Japanese companies flooding Taiwan's TV sector, local manufacturers like Delta faced growing pressures but innovated to stay competitive.
  • “In its first decade, Delta's growth compounded at an average of 69%.” (11:24)

• Entering PCs and Power Supplies:

  • Late 1970s/early 1980s: entered PC market with EMI/RFI noise filters, critical for early personal computers.
  • Innovations in switching power supplies (smaller, more efficient than linear types) enabled new deals with global PC makers like Acer, NEC, Epson, and IBM.
  • “Linear power supplies are cheap, dead simple… but are also physically large and heavy… This reduced efficiencies to a low 40-60%. So people looked to a new type of power supply. Switched types.” (19:00)
  • Delta’s first switched power supply (1983): “The new product attracted buyers like Acer, NEC, Epson and IBM. Revenue that year surged 87.5%.” (23:36)

• Global Expansion:

  • Opened sales and manufacturing offices worldwide: US (1980), Switzerland (1987), Japan (1989), Mexico (1987), Thailand (1988), Scotland (1990), and China (1992).
  • Factories abroad were driven by both customer requests (e.g, Apple, HP) and shifting labor costs.
  • “Labor costs in Mexico are only one third to one half of those in Taiwan. The workers are not inefficient and we save transportation costs when our products enter the US market.” (29:58)

Product Breadth and Corporate Approach

• Chaebol-like Diversification:

  • By the 1990s and 2000s, Delta’s portfolio broadened: brushless fans, networking equipment, notebook and telecom power systems, uninterruptible power supplies, color monitors, projectors, and more.
  • Not every business stuck—color monitors flopped, but other new ventures thrived.
  • “This diversification seems to be due to the company's chaebol-like tendency to go into a business whenever an opportunity arises.” (39:24)

• Sustainability Focus:

  • Founder Bruce Cheng (retired 2011) made green energy and sustainability central to corporate strategy, citing Taiwan’s own environmental issues as inspiration.
  • Delta entered solar power (via Dell Solar) and electric vehicles, though success in each was uneven.
  • “Bruce seems genuinely concerned about energy efficiency and greener ways of life. In his memoirs and interviews, he recalls environmental damage being done in Taiwan from factories as well as energy struggles during the second oil crisis of the 1970s.” (43:32)

Modern Challenges & the AI Boom

• Transition from EV to AI Era:

  • Solar venture challenged by a glut of cheap Chinese solar panels; EV business took 15 years to break even.
  • By 2023, AI data centers overtook EVs as primary growth engine, with revenue share accelerating from 2% (2023) to a projected 20% by 2026.
  • “Now it is the EV category that is in a slump and AI data centers have replaced them as Delta's key growth engine…” (50:38)

• Delta’s AI Data Center Offerings:

  • Full-stack assortment: high-voltage power delivery, air/liquid cooling, networking, and modular prefabricated centers for rapid deployment.
  • “As mentioned, AI data centers require a whole lot more power delivered to the chips, and delivering these levels of power density while also retaining energy efficiency and preventing failures is very important.” (52:16)
  • Jon Y’s personal observation at Computex 2025: “I myself saw this one at Computex 2025 and reckon it's for those who want to get going very, very fast.” (53:30)

• Leadership and Legacy:

  • Though Bruce Cheng is retired, Delta remains steered by seasoned new leaders, blending founder vision with adaptation.
  • “I get the sense of a company built around the vision of a single, very driven founder. Bruce regularly works with engineers and scientists at universities in both Taiwan and abroad to discover and fast track new efforts.” (54:32)
  • Open question for listeners: Can Delta stay dynamic and lead the AI transformation without its legendary founder?

Notable Quotes and Memorable Moments

• On Entrepreneurship and Change:
  “We strive for change because it brings new opportunities, new challenges and greater success. Successful entrepreneurs must have the agility and flexibility to respond to market changes.” – Bruce Cheng, Financial Times interview (12:20)

• On Generative AI and Data Centers:
  “Everyone is so excited about generative AI at the moment, but the basic question is how do you make money from it? … A generative AI data center embedding tens of thousands of servers will be three to ten times more expensive. Unless these companies can find a sustainable business model, I doubt many would invest much in building generative AI data centers at this stage.” – Chairman Yan Cihai, quoted by Nikkei Asia (49:20)

• On Catching Up with History:
  “When starting this video, I had not expected Delta Electronics to be such a sprawling conglomerate. I get the sense of a company built around the vision of a single, very driven founder.” – Jon Y (54:32)

Important Timestamps

• 00:02 – Introduction: Delta’s scale and stock market surge
• 03:00 – Bruce Cheng’s childhood and journey to Taiwan
• 08:00 – The early years: TRW, consulting, Datong
• 11:50 – Factory foundation and first products
• 19:00 – Power supply evolution: from linear to switched types
• 23:36 – Delta’s first switched power supply and PC market entry
• 28:00 – Initial global expansions (US, Mexico, Thailand)
• 35:00 – Product diversification, networking spinoffs, and UPS
• 43:32 – Shift to sustainability: solar and EV
• 49:20 – The generative AI revolution and data centers
• 53:30 – AI data center solutions and personal observations
• 54:32 – Reflection on Delta’s culture and future

Conclusion:

This episode offers a rich, insightful case study on Delta Electronics' evolution from humble beginnings to global dominance. Jon Y’s storytelling highlights both the technical and human dimensions of Delta’s ascent—anchored by Bruce Cheng’s vision, Taiwan’s shifting industrial environment, and the company’s ability to pivot toward emerging technologies. As Delta now rides the wave of AI-driven data infrastructure, its future hinges on whether it can continue its tradition of adaptability in a world much changed from its roots.