TPK Holding Co’s (宸鴻) net profit last quarter more than doubled to NT$54 million (US$1.71 million) as better-than-expected seasonal demand from the tablets segment helped offset a slump in smartphones, corportate officials said.
It reported net profit of NT$24 million in the first quarter.
Earnings per share rose to NT$0.13 last quarter from NT$0.06 a quarter earlier.
However, the touch module and sensor supplier reported an operating loss of NT$14 million, falling short of its expectation of breaking even, and reversing the operating income of NT$119 million it reported in the first quarter.
It expects a pickup in seasonal demand to bring its operating profit margin back to 1 percent to 2 percent this quarter, from zero percent last quarter.
“The third quarter is typically a peak season. There is no exception this year. Shipments will increase as usual,” TPK chief strategic officer Freddie Liu (劉詩亮) told investors in a teleconference call.
“However, business visibility for the second half of this year is lower [than usual] as global political and economic uncertainty is weighing on sales of smartphones and other electronics following the launches,” he said.
Based on orders on hand, TPK is confident of achieving a 20 percent growth in revenue this quarter, from NT$28.45 billion last quarter, Liu said.
It is expected to benefit from seasonal demand as the major smartphone makers are to launch new products this quarter, he said.
Touch products used in smartphones contributed 38 percent of TPK’s revenue last quarter, down from 46 percent in the previous quarter, the company said.
TPK expects very minimal impact from US President Donald Trump’s threat to impose an extra 10 percent tariff on US$300 billion of Chinese goods, chief executive Leo Hsieh (謝立群) said, as a very small portion of its products are shipped directly to the US.
TPK saw a good start for this quarter as last month’s revenue jumped 24.68 percent monthly and 3.6 percent annually to NT$12.53 billion, the highest in six months.
The company plans to spend NT$4 billion this year on buying new equipment, paving the way for the production of next-generation silver-nanowire (SNW) touch technology early next year.
TPK is pinning its hopes on the new touch technology to drive revenue and net profit growth, given that the SNW technology can make flexible touch products used in foldable smartphones at lower costs than rival technologies.
There would be a long way to go before foldable smartphones become mainstream, as most phone vendors are staying on the sidelines for now, Hsieh said.
DAMAGE REPORT: Global central banks are assessing war-driven inflation risks as the law of unintended consequences careens around the world, spiking oil prices Central banks from Washington to London and from Jakarta to Taipei are about to make their first assessments of economic damage after more than two weeks of conflict between the US and Iran. Decisions this week encompassing every member of the G7 and eight of the world’s 10 most-traded currency jurisdictions are likely to confirm to investors that the specter of a new inflation shock is already worrying enough to prompt heightened caution. The US Federal Reserve is widely expected to do exactly what everyone anticipated weeks ahead of its March 17-18 policy gathering: hold rates steady. The narrative surrounding that
Apple Inc increased iPhone production in India by about 53 percent last year and now makes a quarter of its marquee devices there, reflecting the US company’s efforts to avoid tariffs on China. The company assembled about 55 million iPhones in India last year, up from 36 million a year earlier, people familiar with the matter said, asking not to be named because the numbers aren’t public. Apple makes about 220 million to 230 million iPhones a year globally, with India’s share of the total increasing rapidly. Apple has accelerated its expansion in the world’s most populous country in recent years, bolstered
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) share of the global foundry market rose to almost 70 percent last year amid booming demand for artificial intelligence (AI), market information advisory firm TrendForce Corp (集邦科技) said on Thursday. The contract chipmaker posted US$122.54 billion in revenue, up 36.1 percent from a year earlier, accounting for 69.9 percent of the global market, TrendForce said. Its share was up from 64.4 percent in 2024, it said. TSMC’s closest rival, Samsung Electronics, was a distant second, posting US$12.63 billion in sales, down 3.9 percent from a year earlier, for a 7.2 percent share of the global market. In the
HEADWINDS: The company said it expects its computer business, as well as consumer electronics and communications segments to see revenue declines due to seasonality Pegatron Corp (和碩) yesterday said it aims to grow its artificial intelligence (AI) server revenue more than 10-fold this year from last year, driven by orders from neocloud solutions clients and large cloud service providers. The electronics manufacturing service provider said AI server revenue growth would be driven primarily by the Nvidia Corp GB300 server platform. Server shipments are expected to increase each quarter this year, with the second half likely to outperform the first half, it said. The AI server market is expected to broaden this year as more inference applications emerge, which would drive demand for system-on-chip, application-specific integrated circuits
RSS