Local chip designer Global Unichip Corp (創意電子) yesterday said its fourth-quarter revenue could exceed last year’s NT$2.03 billion, shrugging off widespread pessimism that the semiconductor industry is slowing down as a result of a weakened global economy.
Global Unichip, based in Hsinchu, is a chip design subsidiary of the world’s top contract chipmaker, Taiwan Semiconductor Manufacturing Co (台積電), which holds a 36 percent stake in the chip designer. Global Unichip provides outsourcing of chip design services.
“The fourth quarter of this year will not be slower than the same period last year,” Global Unichip chief executive Shih Ke-chiang (石克強) told reporters.
The growth will come from growing demand for chips made on more advanced technologies, Shih said. He made the comments during an investor conference arranged by the Taiwan Stock Exchange Corp.
Global Unichip posted NT$2.03 billion in revenues for the fourth quarter of last year and NT$6.99 billion for all of last year.
“We do not detect a marked slowdown [of the semiconductor industry]. Our customers are more cautious about developing new products, which will not have a significant impact on Global Unichip,” Shih said.
Shih suggested that the third quarter could turn out better than the company predicted a month ago.
“We expect third quarter sales to be higher than the second quarter — rather than [only] slightly higher,” Shih said.
The company reported record high revenues for the second quarter at NT$2.29 billion, 62 percent of which came from the communications segment.
This year, Global Unichip may generate NT$10.56 billion in revenues, up around 50 percent from last year, HSBC Securities forecasted.
HSBC has given the stock an “overweight” rating since July.
Shares of Global Unichip fell 4.26 percent to NT$180 yesterday — a 63 percent upside over the target price of NT$295 set by HSBC.