However, Realtek anticipates a decrease in prices over time, which should encourage further adoption and technological upgrades, potentially doubling the penetration rate annually over the next two years to reach around 20% by 2026. In the router segment, Realtek projects that WiFi 6 and newer technologies will account for over 70% of its revenue in this category for the current year. The company reported a first-quarter revenue of approximately $837 million, reflecting a 13.5% increase from the previous quarter, with a gross profit margin of 50.8% and a net profit margin of 10.7%.

Additionally, inventory management improved significantly, with the number of inventory days decreasing from 104 days in the previous quarter to 81 days, aligning with historical norms. Looking forward, Realtek is optimistic about the growth prospects in switches, automotive, Internet of Vehicles, and high-speed wired network communication chips, while maintaining a cautious outlook on the PC and other consumer electronics chip sectors.