Tong Hsing Electronic Industries Inc (同欣電), an image sensor packaging services arm of Yageo Corp (國巨), yesterday said that the COVID-19 pandemic has not negatively affected demand and it expects revenue to grow by a double-digit percentage year-on-year this quarter, despite it being likely to decline by a single-digit percentage quarter-on-quarter from NT$2.09 billion (US$68.7 million) due to seasonal weakness.
“Our business performance will meet our guidance as customer demand remains intact, despite the COVID-19 outbreak,” Tong Hsing president Heinz Ru (呂紹萍) told investors in a teleconference.
The pandemic has had a minor impact on the firm’s factory in the Philippines due to transportation restrictions, but it is mainly operating normally as export-oriented industries are exempt from the quarantine measures imposed by the Philippine government, Ru said.
The company’s plants in Taipei and Taoyuan are also operating normally, thanks to a smooth supply of raw materials, he said.
“The first quarter will be very different this year compared with the same period in previous years. We expect strong growth this quarter and are also optimistic about the second-quarter outlook,” he said.
CMOS image sensor (CIS) packaging services would grow at the fastest rate this quarter, supported by growing demand for higher-resolution cameras for smartphones in China and for multiple-camera handsets, he said.
To cope with strong demand for CIS services, Tong Hsing plans to more than double its monthly capacity to 160,000 wafers at its plant in Taoyuan’s Longtan District (龍潭), Ru said.
As a result, capital expenditure this year is set to soar to NT$2.17 billion from NT$657.25 million last year, the company said.
Tong Hsing expects the CIS business to become its biggest source of revenue this year, replacing the ceramic substrate business, following the acquisition of CIS service provider Kingpak Technology Inc (勝麗), it said.
Ceramic substrates accounted for 40 percent of the company’s revenue last year.
Tong Hsing posted a net profit of NT$741.96 million for last year, down 26.8 percent from NT$1.01 billion in 2018, primarily due to foreign-exchange losses of NT$42 million during the final quarter of the year.
Earnings per share fell to NT$4.49 from NT$6.13.
Gross margin last year shrank to 21.5 percent from 25.7 percent in 2018 due to an unfavorable product mix.
Revenue rose 0.2 percent to NT$7.43 billion last year, from NT$7.41 billion in 2018.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A TAIWAN DEAL: TSMC is in early talks to fully operate Intel’s US semiconductor factories in a deal first raised by Trump officials, but Intel’s interest is uncertain Broadcom Inc has had informal talks with its advisers about making a bid for Intel Corp’s chip-design and marketing business, the Wall Street Journal reported, citing people familiar with the matter. Nothing has been submitted to Intel and Broadcom could decide not to pursue a deal, according to the Journal. Bloomberg News earlier reported that Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in early talks for a controlling stake in Intel’s factories at the request of officials at US President Donald Trump’s administration, as the president looks to boost US manufacturing and maintain the country’s leadership in critical technologies. Trump officials raised the
RSS