Passive components maker Yageo Corp (國巨) yesterday said that it remains cautious regarding customer demand in the second half of the year, as the prolonged and escalating US-China trade dispute has clouded the visibility of end-demand for devices.
Yageo reiterated its conservative outlook after posting revenue for last month of NT$3.07 billion (US$98.41 million), a year-on-year decline of 61 percent after a 49 percent drop in May.
Second-quarter revenue fell 15.89 percent to NT$9.58 billion from NT$11.39 billion in the first quarter, the world’s largest chip resistor maker said.
The “monthly revenue decline is mainly attributable to fewer working days due to conducting a semi-annual inventory and uncertainty over the US-China trade dispute, which led to weak end-demand in the Greater China region and also affected the momentum for pulling orders from customers in the US, Europe and other Asian countries,” Yageo said in a statement.
“Looking ahead, as concern grows about trade frictions continuing and becoming aggravated, and the visibility of overall end-demand becomes increasingly cloudy, Yageo remains conservative about sales and operational performance, and will stay vigilant in a challenging environment,” the statement added.
The US-China trade spat contributed to already weak demand in the industry amid mid-year inventory adjustments, local peer Walsin Technology Corp (華新科) said yesterday.
Walsin reported that revenue last month plunged 44.6 percent year-on-year to NT$2.37 billion from NT$4.28 billion a year earlier — a decline of 11.7 percent on a monthly basis.
The company reported that second-quarter revenue fell 5.29 percent to NT$7.88 billion from NT$8.32 billion in the first quarter.
Walsin, which saw factory utilization rates fall to between 50 and 60 percent last month, said it is cautious regarding customer demand and aims to closely monitor how the trade dispute evolves in the second half of this year.
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