Hiwin Technologies Corp (上銀科技), one of the nation’s major machine tool makers, yesterday posted a 3.55 percent annual decline in net profits for the last quarter due to foreign exchange loss, but the company expects growing demand for industrial automation to drive the next quarter’s business.
Hiwin has received more orders this quarter due to surging labor costs in China, company chairman Eric Chuo (卓永財) said.
To meet rising demand, Hiwin plans to expand production capacity, Chuo said.
“This quarter was good, but the next quarter will be even better as our new capacity for ballscrews and linear guideways will be in production,” Chuo said.
Chuo said he is optimistic about the business potential for industrial automation and the company plans to invest between NT$3 billion and NT$4 billion (US$980 million and US$130 million) this year into building new plants.
Chuo did not provide further details about the company’s capacity expansion and business outlook.
JPMorgan Securities Ltd expected Hiwin to grow its revenue by 14 percent this quarter to NT$4.1 billion from last quarter’s NT$3.63 billion, driven by the stronger-than-peers momentum and the contribution of the firm’s new industrial robots.
Hiwin’s industrial robots accounted for 5 percent of the firm’s total revenues last quarter, while its ballscrews and linear guideways contributed 91 percent.
Hiwin has been developing medical robots and is in talks with the China Medical University Taiwan (中國醫藥大學) to open a research and development center for further medical robot development.
Chuo said the company expects to ship medical robots to China in the second half of this year after gaining the Chinese government’s certifications for the products this month.
“We expect sales contribution from the medical robot segment to become meaningful soon,” Chuo said.
Hiwin’s net profit dropped 3.55 percent annually to NT$515 million last quarter, mainly dragged down by the depreciation of the euro against the US dollar.
As a result, Hiwin booked exchange rate loss of NT$133 million last quarter.
Hiwin said that the weak euro also eroded its revenues from Europe, but that demand from the region is still growing.
Earnings per share was NT$1.97 last quarter, compared with NT$2.04 per share a year ago and NT$2.99 per share last quarter.
Chuo said it is still to early to tell if the euro’s fluctuation will continue to affect Hiwin’s profitability this quarter, but the firm will continue increasing its competitiveness and enhancing its product quality to offset any negative impact from currency volatility.
Hiwin shares rose 1.3 percent to NT$234 in Taipei trading yesterday, outperforming the TAIEX, which gained 0.28 percent.
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
Production at Taiwan Semiconductor Manufacturing Corp’s (TSMC, 台積電) fabs was not affected by a fire at a construction site for a water recycling facility in the Southern Taiwan Science Park in Tainan. The world’s biggest contract chipmaker said that the construction site is not adjacent to its fabs, which were unaffected. CTCI Corp (中鼎工程) is responsible for the construction of the facility, which it is to operate itself once it is completed, the chipmaker said. The facility caught fire at about 11am, and the blaze was brought under control about 30 minutes after the incident was reported, the Southern Taiwan Science Park Administration
‘SHORT-TERM ECONOMIC PAIN’: A military takeover would only temporarily weigh on wafer production on both sides of the Taiwan Strait, IC Insights said Taiwan has more chip manufacturing capacity than any other economy in the world, US-based market information advisory firm IC Insights said in a research paper last week, cautioning that the nation’s strength could prompt China to attempt to take over Taiwan. Taiwan commanded 21.4 percent of global installed IC capacity, ahead of South Korea’s 20.4 percent, Japan’s 15.8 percent and China’s 15.3 percent, North America’s 12.6 percent and Europe’s 5.7 percent, IC Insights said. Taiwan is one of two countries that uses 10-nanometer technology or better to produce wafers, holding 62.8 percent of global capacity, with South Korea holding the remaining 37.2
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has