Novatek predicts decline
Novatek Microelectronics Corp (聯詠), which supplies chips that control flat-panel displays, yesterday reported that net profit last quarter grew 14.33 percent from the previous quarter to NT$1.69 billion (US$51.6 million), or earnings per share of NT$2.79, and reiterated that Chinese competitors pose no significant threat for the firm. The firm predicted that revenue would decline by 5 to 8 percent this quarter to between NT$12 billion and NT$12.5 billion from last quarter’s NT$13.08 billion. An improved product mix is expected to help maintain its gross margin at between 27 and 28 percent this quarter, compared with last quarter’s 28.05 percent.
MediaTek sets new record
MediaTek Inc (聯發科), the nation’s top handset chip designer, yesterday said that it posted NT$22.24 billion in consolidated sales for last month, up 10.96 percent from the previous month and up 2.93 percent from a year earlier. It was the highest monthly sales in the company’s history. In the first 10 months of the year, MediaTek’s consolidated sales were NT$173.78 billion, showing a 3.03 percent decline from the same period last year.
Tablets hurt Inventec sales
Contract electronics manufacturer Inventec Corp (英業達) yesterday reported that its sales dropped 4.5 percent annually and 13.18 percent monthly to NT$35.16 billion last month. The company said the double-digit decline was mainly due to falling shipments of tablet devices. Total revenue for the first 10 months of the year fell 10.89 percent to NT$320.58 billion from NT$359.75 billion in the same period last year.
Hota beats estimates
Hota Industrial Manufacturing Co (和大工業), which makes gears and shafts for automobiles, yesterday reported that revenue hit a record NT$469 million last month, up 22.79 percent year-on-year. Aggregate revenue from January to last month totaled NT$4.33 billion, an increase of 24.27 percent from a year earlier. The company, which lists BorgWarner Inc and Tesla Motors Inc among its clients, on Thursday reported a net income of NT$348 million for last quarter, up 91.8 percent year-on-year, with earnings per share of NT$1.49, beating Bloomberg’s estimate of NT$261 million, or NT$1.11 per share.
Synnex sales rise 10%
Synnex Technology International Corp (聯強國際) yesterday said that consolidated sales for last month rose 10 percent from a year earlier to NT$29.62 billion, but declined 1.3 percent from the previous month. The company said that its communications products business saw an annual sales growth of 69 percent last month, followed by an annual increase of 22 percent in semiconductor components sales.
Tablet shipments to surge
Global tablet shipments are forecast to increase 16 percent to 58.7 million units this quarter from last quarter as Apple Inc and Microsoft Corp launch new products. However, the numbers are still down sharply by 23 percent from a year ago, Taipei-based research company Digitimes Research said yesterday. White-box tablet vendors are expected to maintain shipments of 20.2 million units this quarter from last quarter due to holiday demand, it said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to