Semiconductor components distributor WPG Holdings Co (大聯大) on Tuesday reported record revenue for last quarter on the back of the peak season effect.
Third-quarter revenue exceeded its previous guidance as the company benefited from steady growth in its core businesses — computers, communications and consumer electronics — and automotive electronics, WPG said in a statement.
WPG is the top vendor of its kind in the world in terms of revenue, ahead of Melville, New York-based Arrow Electronics Inc and Phoenix-based Avnet Inc. The company supplies products to more than 250 global brands through 115 outlets worldwide.
The Taipei-based company’s consolidated revenue last month reached NT$49.25 billion (US$1.59 billion), down 4.94 percent month-on-month and 3.91 percent year-on-year.
However, third-quarter revenue hit NT$150.37 billion, outpacing the company’s forecast of between NT$142 billion and NT$150 billion, and representing an increase of 7.8 percent over NT$139.53 billion in the second quarter and 2.5 percent from NT$146.67 billion in the same period last year, the company said.
WPG attributed the strong results to its successful deployment of products in new applications, such as the Internet of Things, artificial intelligence, cloud storage and high-performance computing, coupled with double-digit revenue growth in North America.
In the first nine months of the year, cumulative revenue totaled NT$413.31 billion, a 4.89 percent increase over NT$394.05 billion in the same period last year and representing 6.9 percent growth in US dollar terms, WPG said.
WT Microelectronics Co (文曄), WPG’s smaller local competitor and the world’s No. 4 supplier, on Tuesday reported record revenue for last quarter, with 67 percent quarterly and 59 percent annual revenue growth to NT$84.76 billion.
The quarterly growth beat the company’s guidance of a sequential increase of more than 40 percent, driven by both organic growth and new businesses.
Cumulative revenue in the first nine months gained 44.82 percent to NT$187.65 billion from a year earlier, the company said in a filing with the Taiwan Stock Exchange.
WPG shares on Friday closed at NT$37.25 in Taipei trading, having dropped 5.46 percent in the year to date, while those of WT Microelectronics closed at NT$39.85, down 11.84 percent this year.
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
DIVERSIFICATION: Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng (陳錦榮) said in a statement on Thursday. “Its growth
Taiwan’s corporate landscape has changed significantly over the past 20 years, with Hon Hai Precision Industry Co (鴻海精密) replacing Formosa Plastics Corp (台塑) as the revenue leader, while Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) has emerged as the most profitable firm, a survey of Taiwan’s 50 largest companies published on Tuesday last week showed. The Chinese-language CommonWealth Magazine survey ranked Taiwan’s 50 largest companies based on their revenue last year, and compared them with the results of a similar survey it conducted in 2000. Only 33 companies on the original list remained in this year’s rankings, the survey found, following two
GEOPOLITICAL RISKS: Beijing announced plans to strengthen ‘enforcement’ in Hong Kong, sparking losses across Asia led by the Hang Seng’s 5.6 percent plunge Local shares on Friday ended sharply lower amid renewed tensions between the US and China over Chinese telecommunications equipment giant Huawei Technologies Co Ltd (華為) and China’s plan to introduce a national security law in Hong Kong. The TAIEX on Friday finished down 197.16, or 1.79 percent, at 10,811.15 on turnover of NT$177.183 billion (US$5.9 billion), almost flat from a close of 10,814.92 on May 15. The market was down across all major sectors, in particular electronics shares, which finished down 1.99 percent from Thursday’s close. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest wafer foundry and a chip supplier