Nova Technology Corp (朋億), a high-technology process equipment supplier that specializes in serving semiconductor companies, yesterday said that its order backlog has risen to a record NT$11.8 billion (US$384 million) as major customers stick to their facility construction plans, despite inventory-driven headwinds.
The order backlog was up 24.21 percent from NT$9.8 billion during the same period last year, the company said.
As a result, Nova expects revenue to increase this year from last year’s NT$8.59 billion, with the growth rate largely dependent on an improvement in raw material supply, it said.
Photo: Grace Hung, Taipei Times
“We hope the first quarter was the trough for this year in terms of revenue and profit,” Nova chairman David Ma (馬蔚) told an investors’ conference. “There is no reason to be pessimistic about the company’s performance, given the high level of orders.”
Revenue last month surged 55.57 percent annually to NT$770 million for its best April performance. This reflected the strong growth momentum from China, it said.
Most customers are continuing with plans to build shell factories in preparation for an upturn in market demand, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), one of Nova’s key customers, has not trimmed capital spending for this year.
About 60 percent of the order backlog comes from Chinese customers including Nexchip Semiconductor Corp (晶合半導體) and Semiconductor Manufacturing International Corp (中芯國際). Taiwan is another major market for the company.
Earnings per share dropped to NT$1.55 last quarter from NT$2.59 a year earlier.
Regarding the impact of the US’ semiconductor export restrictions on China, it could limit raw material supply, Ma told reporters on the sideline of the investors’ conference.
However, there is a positive side, as China is intensifying efforts to boost its semiconductor self-sufficiency, he said.
Nova has been operating a Chinese subsidiary for years and would benefit from Beijing’s efforts to adopt locally made equipment and facilities, he added.
The company said it is cautiously evaluating the possibility of expanding operations in Japan, the US and Europe following major clients’ global footprint.
High labor costs, talent availability and high manufacturing costs are key concerns, the company said.
Nova yesterday reported that net profit last quarter plummeted 40.06 percent to NT$105.17 million, compared with NT$175.47 million in the same period last year. Earnings per share slid to NT$1.55 last quarter, from NT$2.59 a year earlier.
Gross margin slid to 22.21 percent last quarter from 24.64 percent a year earlier, as the company received more lower-margin construction projects.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
RSS