Silergy Corp (矽力杰), a power management chip designer, on Thursday said that is maintaining its goal of growing revenue by 20 percent annually, pinning its hopes on easing supply constraints on key components such as multilayer ceramic capacitors (MLCCs).
The shortage of MLCCs and other components weakened the company’s revenue growth in the first half of this year, Silergy chairman Issac Chen (陳偉) told investors in an earnings conference.
Revenue grew 14.65 percent year-on-year to NT$4.6 billion (US$149.3 million) in the first six months of this year from NT$4.02 billion for the same period last year. Annual growth lagged behind the company’s goal of achieving a compound annual growth rate of 20 to 30 percent over multiple years.
“It is a challenging year this year,” Chen said. “Short supply of key components and market uncertainties have led to changes in the company’s seasonal patterns.”
Some customers were forced to postpone product launches from the first half of this year until the second half, because of insufficient supply of key components, he said.
Chen said he expects revenue growth momentum to recover in the fourth quarter, fueled by an increase in shipments of solid-state drives (SSD) and high-end consumer electronics.
To reduce supply risks, Silergy has adjusted some of its chip designs to reduce their use of MLCCs by 20 to 30 percent, Chen said, adding that this would also lower costs.
The company is confident of achieving its long-term growth rate of 20 to 30 percent year-on-year, Chen said.
In the first half of the year, Silergy’s net profits edged up 2.54 percent to NT$889 million, compared with NT$867 million in the same period last year. Earnings per share (EPS), however, dropped from NT$10.26 to NT$10.17.
The company’s revenue for last month increased by 12.91 percent year-on-year to NT$831.95 million, with overall revenue for the first seven months rising 14.34 percent to NT$5.43 billion.
Silergy’s revenue for this quarter should grow by up to 13 percent from a year earlier on the back of demand momentum for analog integrated circuits for LED lighting, notebooks, SSDs and charging devices, Capital Investment Management Corp (群益投顧) said in a research note on Friday.
However, as wafer foundries might increase their prices for integrated circuit assembly at 8-inch fabs, given the tight supply-demand conditions, price-cutting pressure from downstream clients, and the rising revenue proportion of low-margin analog integrated circuits for notebooks and LED lighting, Silergy’s gross margin would be under pressure this year and next year, Capital Investment 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
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
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable