Shareholders of memory module supplier Adata Technology Co (威剛科技) on Friday approved a proposal to distribute a cash dividend of NT$6 per common share — the highest in four years, the company said.
That represented a payout ratio of 69.85 percent based on the company’s earnings of NT$8.59 per share last year. Earnings last year totaled NT$1.84 billion (US$61.33 million) — the highest since 2013.
Last year “was the longest upcycle in the history of the memorychip industry as a supply crunch of DRAM and NAND flash memory chips drove up chip prices all the way to [early this year],” Adata chairman Simon Chen (陳立白) said in the company’s annual report.
The supply and demand imbalance was attributable to increased demand from cloud computing, big data and emerging cryptocurrency mining, along with limited supply amid a bottleneck in technological upgrade, Chen said in the report.
“The company benefited from the industrial boom as it adopted proper procurement approaches and multiple suppliers [of memory chips],” he said.
Adata expects the DRAM chip industry to remain stable this year, supported by limited new supply and growing demand for gaming PCs, cloud computing and data centers, he said.
That uptrend should continue to fuel the company’s growth this year, he said.
Rising demand from the automotive sector, smartphones and PCs should help stabilize demand and prices of NAND flash memory chips in the second half of this year, he added.
Overall, Adata expects revenue to be higher in the second half of this year than the first half based on historical patterns.
The company already saw an upturn in last month’s revenue, which surged 20.39 percent to NT$2.96 billion from NT$2.46 billion in April, Adata said.
On an annual basis, revenue increased 16.35 percent from NT$2.55 billion.
DRAM chips accounted for 66.5 percent of total revenue, up from 57.51 percent in the prior month.
In the first five months of this year, revenue rose 2.26 percent to NT$13.38 billion, compared with NT$13.08 billion during the same period last year.
Another memory module supplier, Transcend Information Inc (創見資訊), on Thursday last week said that shareholders had approved the distribution of a cash dividend of NT$6 per common share.
Transcend Information saw its net profit shrink 7.64 percent to NT$2.66 billion last year, compared with NT$2.88 billion in 2016, as non-operating losses widened to NT$685 million.
Earnings per share dropped to NT$6.17 last year from NT$6.68 in 2016.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
STABLE RESULTS: Despite June’s lower consolidated revenue, second-quarter sales still reached a record high, driven by demand for chips for AI applications Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported consolidated sales of NT$263.71 billion (US$9.02 billion) for last month, its second-lowest monthly result this year. The world’s largest contract chipmaker said in a statement that its revenue last month only fared better than the NT$260.01 billion posted in February. Last month’s figure rose 26.9 percent from a year earlier, but slumped 17.7 percent from May, the company said. However, second-quarter revenue reached NT$933.8 billion, a record high for a single quarter, company data showed. The figure represented growth of 11.26 percent from the first quarter and 38.6 percent from a year earlier. Previously, TSMC said that
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