GlobalWafers Corp (環球晶圓), the world’s third-largest silicon wafer supplier, yesterday said its board of directors has approved a cash dividend distribution of NT$5 per share, 37.5 percent lower than a year ago, due to weak net profits in the first half of this year.
It is the lowest cash dividend issued by the company since 2021, when it shifted its cash dividend policy to pay shareholders twice a year.
Last year, the company distributed a cash dividend of NT$8 for its earnings of NT$22.49 per share in the first two quarters.
Photo: Ann Wang, Reuters
The latest cash dividend distribution represented a payout ratio of 35.61 percent based on its earnings per share (EPS) of NT$14.04 during the six-month period ended in June.
The payout ratio is below the payout ratio of up to 80 percent over the past few years and fell short of the company’s earlier estimate of 50 percent to 55 percent of its overall EPS, or distributable profits.
GlobalWafers shareholders used to receive dividends of 60 percent to 80 percent of EPS.
GlobalWafers intends to hold more cash, as it expects to face challenges over the next three years given its plans to invest in capacity and technology for future growth and repay debt, company chairwoman Doris Hsu (徐秀蘭) told investors last month.
The company’s policy was to pay less in cash dividends, she said.
The Hsinchu-based silicon wafer manufacturer last month posted its worst monthly revenue since April, totaling NT$5.12 billion (US$157.83 million). That represented an annual decline of 2.38 percent from NT$5.24 billion.
Revenue dipped 10.65 percent from NT$5.73 billion in October. GlobalWafers expected a gradual pickup in revenue, saying the revenue this quarter would increase from NT$15.9 billion last quarter.
The company said it hoped revenue next year would return to last year’s level of NT$70.65 billion, an all-time high.
During the first 11 months, the company accumulated NT$57.13 billion in revenue, falling 11.03 percent from NT$64.22 billion in the same period last year.
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