Topco Technologies Corp (崇越電通), a distributor of silicone products that are mainly manufactured by Shin-Etsu Chemical Co, has a conservative outlook for this quarter, as clients so far this year have mostly been placing small-volume rush orders and inventory adjustments are expected to extend from last quarter.
However, the company said that its outlook is more positive for the second half of this year, when sales of silicone products used in smartwatches, servers and heat dissipation items are expected to increase.
Shin-Etsu plans to raise its output in the third quarter, so more shipments from the Japanese firm are likely in the second half of the year, Topco said on May 9.
The company said it would continue to expand its customer base in the automobile, medical and cosmetic segments to diversify its product portfolio and counter fluctuations in sales.
The company’s remarks came after it reported disappointing first-quarter results due to customers’ inventory adjustments and a high comparison base set last year.
Net profit dropped 26.57 percent to NT$80.19 million (US$2.56 million) for the first quarter from NT$109.2 million in the same period last year, or earnings per share of NT$1.76 from NT$1.11.
Gross margin fell annually from 19.81 percent to 17.64 percent and revenue declined 15.70 percent to NT$1.73 billion, which Topco Technologies blamed on silicone prices, which have been falling since the fourth quarter of last year.
Topco Technologies’ earnings per share were diluted after it increased paid-in capital in January by NT$60 million to NT$740.61 million by issuing one million new shares, the company said.
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
Gudeng Precision Industrial Co (家登精密), the sole extreme ultraviolet pod supplier to Taiwan Semiconductor Manufacturing Co (台積電), yesterday said it has trimmed its revenue growth target for this year as US tariffs are likely to depress customer demand and weigh on the whole supply chain. Gudeng’s remarks came after the US on Monday notified 14 countries, including Japan and South Korea, of new tariff rates that are set to take effect on Aug. 1. Taiwan is still negotiating for a rate lower than the 32 percent “reciprocal” tariffs announced by the US in April, which it later postponed to today. The
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
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.
RSS