ChipMOS Technologies Inc (南茂), a packaging and testing service provider for LCD driver ICs and memory chips, yesterday posted an annual decline of 34.5 percent in net profit for last quarter, as its major DRAM client, Micron Technology Inc, continues to cut orders.
Net profit dropped to NT$162 million (US$5.37 million) last quarter, compared with NT$255.1 million in the third quarter last year, the company’s statement showed.
That represented a quarterly contraction of about 50 percent from NT$321.4 million.
Gross margin fell to 17.2 percent, from 20.1 percent a quarter earlier and 20.3 percent a year earlier, partly due to electricity shutdowns, the company said.
ChipMOS said it expects Micron to scale down orders next year as the US memory chipmaker is allocating DRAM chip testing and packaging orders to multiple suppliers in a strategy shift.
However, ChipMOS did make progress in minimizing the impact by diversifying its business scope to provide testing services for driver ICs used in flat panels, company chairman S.J. Cheng (鄭世杰) told investors.
Revenue from driver IC testing grew 7.1 percent quarter-on-quarter last quarter, supported by increasing demand for 4K ultra-high-definition LCD TVs and smartphones, Cheng said.
The company has also secured some major clients from South Korea to provide its gold bumping testing service for driver ICs used in advanced organic LED displays (OLED), Cheng said.
“We have started offering gold bumping services for OLED displays, which has reflected in our strong growth in gold bumping business in the third quarter [this year],” Cheng said. “We expect [testing revenue] contribution from OLED displays to be more evident in the first quarter of next year, as some clients enter the qualification process.”
Cheng did not disclose names of those clients, but the Chinese-language United Evening News last week reported that the company had clinched exclusive orders from Samsung Electronics Co.
“Demand for niche DRAM and NOR flash memory chips remains very strong, as indicated by customers’ feedback and recent market situation,” Cheng said of the outlook for this quarter.
The growth is expected mainly from rising demand in automotive electronics, small-sized OLED displays and image identification sensors for smartphones, he said.
Cheng said he is optimistic about revenue growth from the driver ICs segment, considering the climbing penetration rate of 4K LCD TVs.
The launch of new smartphones by major vendors, which are equipped with an 18:9 aspect ratio screen, would also fuel demand for better-margin testing and packaging services for display driver ICs, he said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS