HannStar Display Corp (
During the quarter ended on Dec. 31, HannStar eked out earnings of NT$998 million (US$30.17 million), or NT$0.17 per share, reversing losses of NT$1.29 billion a year ago and NT$3.04 billion in the third quarter, a company statement said.
HannStar's earnings were boosted by a NT$6 billion gain in non-operating income, half of which came from handset panel maker Wintek Corp's (
To reduce losses per share, HannStar's board yesterday approved a 17.2 percent capital reduction plan. The panel maker plans to reduce its capital from NT$60.5 billion to NT$50.1 billion by cutting the number of outstanding shares to 5.01 billion.
HannStar's operating losses contracted to NT$558 million last quarter, compared with NT$2.69 billion in losses in the third quarter. However, a year earlier, the company posted an operating income of NT$491 million.
"The average selling price [ASP] will have to rise if we are to make profits. The most important thing for us to focus on is cutting costs," HannStar president Joe Chou (
Chou said HannStar would save another 5 percent in costs this quarter from last quarter.
Chou said he expected screen prices to decline by a single-digit percentage -- or US$3 to US$5 per month -- in the first three months of the year as a result of a supply glut. Fueled by PC demand, shipments would increase slightly from 4.25 million units, he added.
The ASP rebounded by 6.2 percent to US$137 last quarter from US$129 in the July to September period, but declined 16 percent from US$163 on an annual basis.
Citing lower inventory compared with the downturn in 2005, Chou said the liquid-crystal-display panel market would recover sharply in the third quarter.
HannStar would concentrate on profits and be cautious on building new plants, Chou said. HannStar operates three plants at present.
For this year, HannStar plans to spend NT$900 million in new facilities and equipment, down sharply from the NT$7.7 billion in capital spending last year, he said.
Since the beginning of the year, HannStar shares have dropped 5.03 percent to NT$5.85 yesterday, under-performing the benchmark TAIEX index's 2.32 percent loss.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,