Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) yesterday said sales generated by its core business — chip packaging and testing — hit a record high last month.
Analysts said ASE’s sales growth last month was in line with their forecasts and expected the company to continue benefiting from the rising package orders of Apple Inc’s Wi-Fi modules and fingerprint sensor modules for new iPhone products in the second half of this year.
ASE is the world’s largest provider of chip packaging and testing. The Greater Kaohsiung-based firm also offers electronic manufacturing services through Universal Scientific Industrial Co (環隆電氣), which it acquired in 2010.
In a filing to the Taiwan Stock Exchange, ASE said its packaging and testing revenue was NT$12.56 billion (US$421 million), up 3.04 percent month-on-month and 10.85 percent year-on-year.
Ahead of the release of the data, Deutsche Bank analyst Michael Chou (周立中) predicted the company would report a between 1 and 3 percent monthly increase in packaging and testing sales last month and 4 percent increase this quarter from last quarter.
Chou and Citigroup Global Markets analyst Roland Shu (徐振志) believed ASE would benefit from the system-in-packaging (SiP) business from this quarter, as the company is the sole supplier of this product for new iPhone’s fingerprint sensor modules.
In July, ASE said that its packaging and testing revenue for this quarter might increase by between 1 and 5 percent from last quarter, while revenue for the electronic manufacturing services segment might grow by more than 25 percent sequentially.
In yesterday’s filing, ASE said its consolidated revenue last month rose 7.4 percent month-on-month and 15.88 percent year-on-year to the highest level this year at NT$18.83 billion. From January to last month, accumulated revenue totaled NT$135.31 billion, an increase of 11.92 percent from NT$120.9 billion for the same period last year, the filing said.
Meanwhile, rival Siliconware Precision Industries Co (SPIL, 矽品精密), the world’s second-biggest chip packager and tester, also reported record revenue for last month.
Revenue last month increased 6.2 percent month-on-month and 15.28 percent year-on-year to NT$6.51 billion, with total revenue for the first eight months rising 2.82 percent to NT$44.06 billion, Siliconware said on Thursday last week.
Revenue for this quarter is likely to increase 8.4 percent sequentially and 13.3 percent annually to NT$19.1 billion, SinoPac Securities Investment Service (永豐金投顧) analyst Chen Cheng-chieh (陳振傑) said in a note, citing strong demand for high-end chip packaging and testing services from mobile communication segment.
Separately, Foundry operator Vanguard International Semiconductor Corp (世界先進) reported yesterday its consolidated revenue declined 2.5 percent month-on-month due to fewer wafer shipments.
However, last month’s sales rose 12.8 percent year-on-year to NT$1.88 million last month, pushing the first eight months’ sales to increase 27.27 percent at NT$13.95 billion, Vanguard vice president Tseng Dong-liang (曾棟樑) said in a statement.