ShunSin Technology Holdings Ltd (訊芯科技), a semiconductor arm of Hon Hai Precision Industry Co (鴻海精密), yesterday announced the election of Chiang Shang-yi (蔣尚義) as its new chairman.
Chiang, a former joint chief operating officer of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), in November last year joined Hon Hai as its chief strategy officer to integrate the resources of its semiconductor subsidiaries, including ShunSin.
ShunSin specializes in offering system-in-a-package modules and optical transceivers.
Photo: CNA
“We believe Chiang will have a positive impact on ShunSin,” company president Hsu Wen-yi (徐文一) told reporters on the sidelines of the company’s annual shareholders’ meeting in Taipei.
“We have talked about Hon Hai’s efforts to deeply integrate all of its semiconductor subsidiaries. We believe artificial intelligence [AI], semiconductors and next-generation communications are the areas Hon Hai will focus on in the future,” Hsu said.
Talking about ShunSin’s third-quarter outlook, Hsu said the company is seeing a comeback of customer orders, following three quarters of inventory digestion since the fourth quarter of last year.
Orders are increasing gradually, he said.
During the first five months of this year, ShunSin’s revenue expanded 27.86 percent year-on-year to NT$2.09 billion (US$67.26 million).
Last year, the company’s revenue rose 24.53 percent to NT$5.32 billion from a year earlier, with high-speed optical transceivers contributing about 75 percent, compared with 40 percent in 2021, boosted by extra capacity from a new factory in Vietnam, Hsu said.
ShunSin is expected to benefit from rapidly growing AI applications and fiber-optical deployment worldwide, the company said.
Its new advanced 400G high-speed optical transceiver is to enter volume production by the end of this year, and a more advanced 800G high-speed optical transceiver is to start mass production next year in Vietnam for US customers, it said.
The 800G high-speed optical transceivers are to be used in AI servers, which are expected to see explosive growth in 2025, Hsu said.
In contrast, the company’s SiP business encountered severe headwinds due to a semiconductor crunch last year, with revenue accounting for a mere 20 percent of the total, down from 50 percent in the prior year.
ShunSin shareholders yesterday approved a proposal to distribute a cash dividend of NT$1.17 a share, implying a payout ratio of 61 percent based on the company’s earnings per share of NT$1.92 last year.
Shareholders also approved the company’s proposal to list its subsidiary ShunYun Technology Holdings Ltd (訊芸), which makes high-speed optical transceivers, on the Chinese stock market.
ShunSin said it plans to submit ShunYun’s application for an initial public offering to the Chinese regulator next year.
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