Global Unichip Corp (創意電子), which designs application-specific ICs (ASICs) used in cryptocurrency mining machines, is to accelerate hiring in China as Chinese customers are stepping up semiconductor investment amid growing concern about trade tensions between China and the US, a company executive said yesterday.
The Hsinchu-based company plans to more than triple its workforce in China to 150 people by the end of this year, from 45 people.
“China is showing strong investment momentum as it [intends to] adapt” to US President Donald Trump’s administration’s ever-changing trade policy, company president Ken Chen (陳超乾) said on the sidelines of the company’s annual shareholders’ meeting at its headquarters.
The expansion exceeds what was envisioned in the company’s five-year program unveiled in November last year.
At the time, Global Unichip said it planned to expand the workforce at its new subsidiary in Nanjing, China, to 100 people this year and to 200 people through 2021.
The company’s observations about accelerating investment by Chinese clients coincide with a report in the Wall Street Journal that Beijing is to announce a new semiconductor fund worth 300 billion yuan (US$47.11 billion) to close its technological gap with the US as a possible trade war looms.
The fund is another addition to China’s long-term push to command a greater presence in the global semiconductor industry and reduce its reliance on chip imports.
China contributed about 20 percent to Global Unichip’s revenue of NT$2.76 billion (US$92.29 million) in the first three months of the year.
“The trade spat between the world’s top two economies may curtail the world economy a bit, but that will not affect the business of Global Unichip, as the company is focusing on rapidly growing segments, including artificial intelligence, machine learning and cloud computing technologies,” Chen said.
Sagging demand for ASICs used in cryptocurrency mining because of volatile trading presents a downside risk, he said, adding that Global Unichip expects to achieve “decent growth” this year.
Global Unichip’s growth is to be primarily driven by rising demand for high-end technologies, including 7-nanometer and 12-nanometer technologies for processors that power supercomputers and datacenters, he said.
Global Unichip, which is 35 percent owned by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), plans to upgrade its technological capabilities to 5-nanometer and 3-nanometer technologies, following in TSMC’s footsteps.
Chen said the company is also developing quantum computing technologies to enhance computing capacities and reduce power consumption by supercomputers that process “big data.”
At the meeting, shareholders approved the company’s proposal to distribute a cash dividend of NT$5 per common share, making for a 78 percent payout ratio on earnings per share of NT$6.38 last year.
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