Sat, Oct 05, 2019 - Page 12 News List

CHPT in revenue about-face as 5G offsets lost orders

NEW GROWTH DRIVERS:The company said its long-term research-and-development efforts in 5G and artificial intelligence have started to bear fruit

By Lisa Wang  /  Staff reporter, in TAOYUAN

Chunghwa Precision Test Technology Co (CHPT, 中華精測), which provides wafer and chip testing services, yesterday said it would not post a decline in revenue this year because 5G and other new testing services had helped offset a fall in orders from a major client.

CHPT has posted annual growth in revenue every year since 2013 and last year its revenue increased 5.47 percent year-on-year to NT$3.28 billion (US$105.9 million).

“We do not want to break that record this year,” CHPT president Scott Huang (黃水可) told a media briefing at the company’s new headquarters in Taoyuan, which houses a larger research and development department.

At the beginning of this year, the company was not so optimistic about its business outlook because “a major client negatively adjusted its orders,” Huang said.

“We thought [revenue] would fall dramatically this year,” he said. “Fortunately, we received new orders from other clients, which helped us recoup most of the orders lost in the second half.”

CHPT counts Huawei Technologies Co’s (華為) chip design arm, Hisilicon Technologies Co (海思半導體), and Taiwan Semiconductor Manufacturing Co (台積電) among its major clients.

The company said its long-term research-and-development efforts in 5G and artificial intelligence have started to bear fruit.

New wafer and chip testing services for 5G-enabled chips, including application processors and radio-frequency chips, started contributing revenue in the second quarter, Huang said.

With more 5G commercial launches and a growing number of 5G smartphones hitting the market, CHPT expects 5G testing services to become a bigger growth driver next year.

The company provides wafer and chip testing services for 5G chips and has been expanding its reach to vertical probe cards.

New testing services are set to account for a double-digit percentage share of total revenue this year, Huang said.

The company is also bullish about next year, as its new production lines would be ready for mass production in the second and third quarters. It also plans to hire an additional 1,000 engineers in Taiwan.

CHPT posted record-high monthly revenue of NT$392 million for last month, which helped boost last quarter’s revenue 64.4 percent to NT$1.1 billion from NT$888 million in the second quarter.

Last quarter’s revenue was also an all-time high.

CHPT attributed the strong growth to increasing demand for 5G-enabled application processor chips, radios frequency chips, modem chips, and wireless and wired networking chips.

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