Avalue Technology (3479): Approaching the NT$10 Billion Revenue Milestone
CDRC Corporate Development Research Center / Board Review
Taiwan's industrial computer (IPC) industry has an extraordinary female entrepreneur. She founded Avalue Technology in 2000, during the dot-com bubble, and has led the company through 24 consecutive years of profitability. With continued business expansion, Avalue is now approaching the milestone of NT$10 billion in annual revenue.
That entrepreneur is Avalue Technology Chairwoman Liu Li-Chi. A French major in college, Liu joined Advantech, a leading industrial computer manufacturer, in 1987 through a senior schoolmate's introduction, becoming the company's first overseas sales representative.
At the time, Taiwan's IPC industry was still in its early stages. Drawing on the stamina and perseverance she developed as a young volleyball player, Liu traveled overseas with Advantech Chairman K.C. Liu to attend trade shows and reach out to potential clients. This marked the beginning of her more than 30-year career in industrial computing.
Impressed by her outstanding sales performance, K.C. Liu appointed her to help establish AAEON Technology in 1992. She remained involved in the industry until founding Avalue Technology in 2000.
"I feel fortunate to have participated in the operations of three Taiwanese industrial computer companies and witnessed Taiwan's IPC industry grow from its beginnings into a global leader," Liu said proudly in an interview. "I consider myself part of Taiwan's first generation of IPC professionals."
Service-Oriented Core Competitiveness
Avalue Technology started with just ten employees but became profitable in its first year, achieving earnings per share (EPS) of NT$7.
Liu explained that, unlike traditional personal computers (PCs), industrial computer companies serve clearly defined market segments, and nearly all IPC manufacturers are profitable.
How, then, should the industrial computer market be defined?
"Any application that falls outside the scope of conventional personal computers belongs to the industrial computer market," Liu explained.
With this clear market positioning, Avalue has developed products and solutions across healthcare, retail, transportation, manufacturing, gaming, energy, and other industries. In 2023, the company achieved record annual revenue exceeding NT$8.2 billion.
Liu noted that Avalue prepares comprehensive annual business forecasts and establishes strategic goals every five years.
"When the COVID-19 pandemic began in 2020, we launched a plan to double our revenue, targeting NT$10 billion by 2025," she recalled with a smile. "Looking back, we were quite ambitious."
As Avalue's products continue to mature, the company is expanding its production capacity. A new 1,300-ping (approximately 4,300-square-meter) factory in Kaohsiung's Qianzhen Industrial Zone was scheduled to begin operations in October 2024.
Combined with its global offices in Shanghai and on both the East and West Coasts of the United States, which allow the company to provide services closer to its clients, Avalue appears well positioned to reach its NT$10 billion revenue target.
Meanwhile, the board has approved a NT$1 billion land acquisition plan to develop a new corporate headquarters in New Taipei City. The planned headquarters will occupy a 1,150-ping (approximately 3,800-square-meter) site, featuring ten above-ground floors and three basement levels, with completion and relocation scheduled for 2028.
What is the core competitive advantage behind Avalue's continued growth? Is the company technology-driven or market-driven?
"Rather than defining Avalue as technology-driven or market-driven, I see us as a service-oriented IPC company that integrates technology and market needs," Liu explained.
Avalue's strength lies in its close relationships with markets and clients. By understanding customer applications, the company can quickly provide the right specifications and solutions.
As a result, more than half of Avalue's revenue still comes from original design manufacturing (ODM) clients, supported by a responsive R&D team capable of meeting customer requirements efficiently.
Pioneering Medical Applications in the IPC Industry
"Healthcare is our most important industry. We want Avalue to be a pioneer in medical industrial computers," Liu stated firmly.
Avalue has been developing smart healthcare solutions for many years. One of its earliest products was a bedside care system featuring an adjustable touchscreen computer mounted beside a hospital bed.
The system integrates multiple functions into a single device, allowing patients to browse the internet, listen to music, order meals, and make video calls. It also supports physicians with access to complete medical records and nurses with medication administration systems.
Liu believes such integrated bedside systems could become standard equipment in newly established hospitals.
Avalue aims for medical-related products to account for at least 40% of total revenue.
"We have many successful cases in healthcare," Liu noted.
She explained that the healthcare industry is relatively closed to new entrants. Rather than approaching hospitals directly, Avalue works closely with long-term clients to enter healthcare systems through established partnerships.
In 2024, the company even participated in a medical exhibition in the Arab region.
Liu recalled one medical project that attracted bids from more than 20 major companies. Avalue ultimately became one of just three shortlisted suppliers, demonstrating its competitiveness in the sector.
Avalue's AI Strategy: Creating Mutual Benefits
Avalue is also prepared for the rapid rise of artificial intelligence (AI).
"Our AI strategy is to create benefits for both ourselves and our clients, achieving a win-win outcome," Liu explained.
Both generative AI and discriminative AI require substantial computing power, with applications generally divided between public and private cloud environments.
Public cloud services are dominated by technology giants such as Google and Microsoft. However, many companies, including Avalue's clients, cannot use public cloud services because of data privacy and confidentiality concerns.
This creates a business opportunity for Avalue.
"We can provide customized private cloud solutions based on our clients' specific requirements," Liu explained.
Avalue has already developed HAI application platforms for a wide range of industries, using entry-level NVIDIA chips and Intel processors to deliver high computing performance with low power consumption.
By working with business partners, Avalue aims to develop optimized platforms and establish a comprehensive AI ecosystem.
Building a Corporate Culture of Stability, Innovation, and Dedication
"I hope Avalue will be recognized as a trustworthy, professional, profitable, and world-class international company," Liu said.
When she founded Avalue, her goal was to create a strong brand where young professionals could grow alongside the company.
This vision led to the company's founding management philosophy:
"Stability and Innovation, Dedication and Passion, Enjoying Work, and Embracing Life."
Avalue has always placed great importance on its employees and talent development.
During the company's first capital increase, 15% of the shares were reserved for employee subscriptions. Avalue also established comprehensive job descriptions and management systems to ensure effective organizational operations.
Liu emphasized that, beyond creating a workplace where employees enjoy their jobs, Avalue wants to develop professionals who can remain competitive in a rapidly changing world.
Employees must have strong communication skills, the ability to identify the right solutions, and, most importantly, a global perspective.
"We expect every employee to be innovative, including our receptionists," she said.
Avalue also places strong emphasis on succession planning.
Every position has a designated backup, while new employees receive guidance through a mentoring system supported by more experienced colleagues.
"I believe the company does not belong to one individual. It belongs to all employees," Liu explained.
She has even told her children that they should not join the company.
"I have always believed that corporate succession does not necessarily have to remain within the family."
