Major passive-component makers yesterday reported that revenue continued to expand last month on an annual basis due to steady demand, but said they remain cautious as the COVID-19 pandemic has not eased worldwide.
Yageo Corp (國巨), the nation’s largest passive components supplier, said that revenue last month grew 2.1 percent month-on-month and 105.1 percent year-on-year to NT$9.2 billion (US$332 million).
Cumulative revenue in the first five months of the year was NT$41.96 billion, a 121.5 percent increase from the same period last year, the company said in a regulatory filing.
“Despite fewer working days in China due to holidays, revenue last month continued to grow and set a new monthly record for the company,” Yageo said in the filing.
The company attributed the increase to higher sales in Europe and the US, a gradual improvement in factory utilization in the “greater China” region, steady demand from customers and continuous optimization of its product mix.
Yageo produces chip resistors, inductors and multilayer ceramic capacitors (MLCCs), among other products.
Although the company’s overall operation is stable and the end market demand appears solid, Yageo said it would stay vigilant, as the COVID-19 pandemic has not eased worldwide and trade frictions between major economies create uncertainty.
Separately, Chilisin Electronics Corp (奇力新), the nation’s largest power inductor manufacturer, reported that revenue last month fell 3.69 percent month-on-month, but rose 19.96 percent year-on-year to NT$1.56 billion.
Accumulated revenue in the first five months reached NT$7.55 billion, up 25.66 percent from a year earlier, as persistent demand for laptops, Chromebooks, smartphones, gaming devices and servers during the COVID-19 pandemic boosted shipments of mini-molding chokes, high-frequency chip inductors and low-temperature cofired ceramic components.
“Last month’s consolidated revenue was lower than the previous month, mainly due to reduced working days because of the Workers’ Day holiday in China,” Chilisin said in a statement, adding that it remains cautiously optimistic given steady demand for inductor components amid a work-from-home economy.
Smaller MLCC supplier Holy Stone Enterprise Co (禾伸堂) posted revenue of NT$1.54 billion for last month, up 8.74 percent from the previous month and 25.73 percent higher than a year ago.
In the first five months, cumulative revenue was NT$7.36 billion, up 29.78 percent from a year earlier, it said in a statement yesterday.
“MLCCs showed stable sales last month, while other products presented increased sales from April,” Holy Stone said. “As worldwide supply chains are still affected by the pandemic, Holy Stone would continue to pay close attention and respond appropriately.”
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading
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