CHPT counting on new product shipments for growth

WAIT FOR NEW PLANT::Growth has been hindered by production limits, but a fab coming on line next year would change that, CHPT president Scott Huang said

By Lisa Wang  /  Staff reporter

Thu, Sep 06, 2018 - Page 12

Chunghwa Precision Test Tech Co (CHPT, 中華精測) yesterday said it might see robust revenue growth next year from new product shipments.

Its new NT$1.65 billion (US$53.56 million) plant is to start operation in the third quarter of next year, which would help mitigate the tight capacity this year, the nation’s largest provider of probe card testing services said.

Revenue growth this year has been capped by its capacity scarcity, CHPT president Scott Huang (黃水可) told reporters.

Revenue inched up 1.83 percent to NT$2.29 billion in the first eight months of the year, compared with NT$2.25 billion for the same period last year, CHPT said in a filing with the Taiwan Stock Exchange.

“With the new fab starting operation next year, we will have enough capacity to produce new products,” Huang said. “Application processors [for smartphones], application-specific ICs for [bitcoin] mining chips and power management ICs will be the driving forces in 2019.”

Revenue is forecast to grow by a double-digit percentage next year, Huang said.

CHPT provides probe cards for chipmakers, which are interfaces between systems and chip wafers typically used to test for faulty circuits and other errors before the wafers are cut into chips.

Taiwan Semiconductor Manufacturing Co (台積電), Qualcomm Inc and Hisilicon Technologies Co (海思半導體), a chip designing arm of Huawei Technologies Co (華為), are its top clients.

CHPT said its expansion to aerospace industry would likely begin to bear fruit early next year, and it is set to ship its first probe cards for commercial satellites next year.

The company is not expecting to see a drastic decline in revenue in the fourth quarter as it did last year, Huang said.

A single-digit percentage reduction is more likely, he added.

CHPT posted a 40 percent quarterly contraction in revenue in the fourth quarter of last year.