Catcher Technologies Co (可成科技), which supplies metal casings for Apple Inc’s iPhones, yesterday revised upward its sales guidance for next quarter, citing increasing demand for smartphone and notebook products.
“Thanks to the smoother production and strong orders for metal casings for new projects, we now forecast the next quarter will be better than this quarter,” Catcher chairman Allen Hung (洪水樹) told a media briefing after the firm’s shareholders’ meeting in Tainan.
In an investors’ conference on April 29, Horng said the company’s revenue next quarter would be flat from this quarter due to the dissipating product cycle for existing projects.
In the first five months of this year, Catcher made NT$31.33 billion (US$1 billion) in sales, up 64.05 percent from a year earlier.
Hung said the strong sales performance bodes well for the company throughout this year.
Hung said sales this month would drop slightly from last month’s NT$6.85 billion due to a traditional slow season, but they would pick up significantly from next quarter.
“Sales in the fourth quarter of this year will expand further from the third quarter,” Catcher spokesman James Wu (巫俊毅) said.
Hung said the predicted momentum is based on larger order allocations from its major smartphone clients this year.
Commenting on one of its clients’ new smartphone projects, Hung said a surface treatment on a harder metallic material is more difficult than traditional metal-casing processes and would lower the yield rate at the beginning of the production cycle.
“However, it will not be a major issue for Catcher, as we keep improving our techniques,” Hung said.
Despite soft demand for PCs and weaker-than-expected smartphone sales, Hung said the firm does not worry about its business outlook, because Catcher’s main clients are doing well in the notebook computer and smartphone segments.
“Overall, our main clients are on the winning team,” he said.
In a bid to meet rising demand from clients, Catcher raised its capital expenditure by 35 percent from a year earlier to NT$6.76 billion in the first half of this year, Hung said, adding that the funds will be mainly be used to build new factories.
He said that capital expenditure for the second half of this year would be flat from the first half, mainly because of equipment purchases.
“Overall, capital expenditure for this year is to be lower than last year’s NT$23.2 billion,” he said.
Hung said he is upbeat about Catcher’s ability to outpace rivals for at least five years, adding that the firm’s advanced technologies and techniques in metal casing treatments for various products put it in a strong position.
Despite market concerns about rising competition from Casetek Holdings Ltd (鎧勝) and FIH Mobile Ltd (富智康) regarding orders of Apple MacBook and tablet products, Catcher remains confident about its technological edge.
“Tell me, which company should Catcher be worried about?” Hung asked shareholders.
Metal casing treatments are more delicate and complicated than people imagine, he said, adding that the work requires more than just advanced equipment.
STATE SUBSIDIES: The talks over a factory in Dresden have a top end on par with what Japan is offering TSMC and outdo a cap other firms are being offered in Europe Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is in talks to receive German government subsidies for as much as 50 percent of the costs to build a new semiconductor fab in the country, people familiar with the matter said. The government is in ongoing negotiations with TSMC, as well as its partners on the project — Bosch Ltd, NXP Semiconductors NV and Infineon Technologies AG — the people said, asking not to be identified because the deliberations are private. No final decisions have been made and the final subsidy amount could still change. Any state aid must also
South Korea would avoid capitalizing on China’s ban on a US chipmaker, seeing the move by Beijing as an attempt to drive a wedge between Seoul and Washington, a person familiar with the situation said. The South Korean government would not encourage its memorychip firms to grab market share in China lost by Micron Technology Inc, which has been barred for use in critical industries by Beijing on national security grounds, the person said. China is the biggest market for South Korea semiconductor firms Samsung Electronics Co and SK Hynix Inc and home to some of their factories. Their operations in China
GEOPOLITICAL RISKS: The company has a deep collaboration with TSMC, but it is also open to working with Samsung Electronics Co and Intel Corp, Nvidia’s CEO said Nvidia Corp, the world’s biggest artificial intelligence (AI) GPU supplier, yesterday said that it is diversifying its supply chain partners in order to enhance supply chain resilience amid geopolitical tensions. “All of our supply chain is designed for maximum diversity and redundancy so that we can have resilience. Our company is very big and so we have a lot of customers depending on us. And so our supply chain resilience is very important to us. We manufacture in as many places as we can,” Nvidia founder and chief executive officer Jensen Huang (黃仁勳) said in response to a reporter’s question in
POWER FORWARD: The US company’s bullish revenue projection also lifted the shares of Taiwanese chipmaker TSMC and Japanese equipment supplier Advantest Nvidia Corp’s forecast for surging revenue surprised even the most bullish analysts on Wall Street, propelling the chipmaker to the cusp of a US$1 trillion market capitalization and igniting a global jump in stocks linked to artificial intelligence (AI). The Santa Clara, California-based company gained as much as 29 percent in extended US trading, on course for a record high, after saying it expects sales to reach about US$11 billion in the three months ending July. That gain puts Nvidia on track also to rack up the biggest one-day valuation jump in US company history. Nvidia, the biggest supplier of the advanced