Handset chip designer MediaTek Inc (聯發科) yesterday said that a chip supply constraint is likely to persist through the end of the year.
While the company did not elaborate on how the issue is likely to affect its business this quarter, vice chairman and president Hsieh Ching-jiang (謝清江) said that it would be a slower season than the third quarter, citing seasonal factors and weakening growth momentum in China.
The Hsinchu-based company has a long list of Chinese clients, including Oppo Mobile Telecommunications Corp (歐珀移動), Vivo Electronics Corp (維沃移動通信) and Xiaomi Corp (小米).
Chip supply became tight from the second quarter after a powerful earthquake hit southern Taiwan in February, disrupting production by local chipmakers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), MediaTek said in June.
Hsieh also attributed the chip shortage to robust demand for low-and-mid-range smartphones, adding that he hoped the situation would ease next year.
“We have not seen any significant improvement in the fourth quarter, compared with the third quarter,” Hsieh said on the sidelines of a news conference in Taipei to celebrate Google’s 10th anniversary in Taiwan. “Supply of certain [chips] used in mobile phones remains tight, especially 28-nanometer chips.”
Hsieh said the third quarter would be its best this year and that the company is under pressure to hold onto its gross margin for this quarter amid intensifying competition.
MediaTek is hoping to lift its gross margin by increasing shipments of its higher-margin Helio chips.
The firm expects to start shipping its high-end Helio-X30 chip in the first half of next year, Hsieh said.
The chip is to be produced using TSMC’s most advanced 10-nanometer technology, he said.
In August, Hsieh said that revenue for last quarter would grow between 8 and 16 percent, or from NT$72.53 billion (US$2.31 million) in the second quarter to between NT$78 billion and NT$84 billion last quarter.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
DIGITAL COMMERCE: In 2016, only 2 percent of orders were delivered in Taiwan, but that has risen to 10 percent, Foodpanda Taiwan Co operations director Nick Yu said Online food delivery platforms have seen explosive growth in Taiwan this year, helped by business opportunities related to the COVID-19 pandemic, company executives said at a digital commerce conference in Taipei yesterday. When the threat of COVID-19 kept people from going out to eat, more people experimented with ordering food deliveries online, Foodpanda Taiwan Co Ltd (富胖達) operations director Nick Yu (余岳勳) said. Foodpanda started operations in Taiwan in 2012. “We experienced 5,000 percent growth in the past 24 months,” Yu said. “That’s more than the previous six years combined.” In 2016, only 2 percent of food orders were delivered in Taiwan, but that