Chunghwa Precision Test Technology Co (CHPT, 中華精測), a supplier of probe cards used for silicon wafer testing, is cautiously optimistic about its business outlook for next year, bolstered by robust demand for vertical probe cards (VPC) and testing demand for high-performance-computing (HPC) chips, a company official said yesterday.
Revenue from the high-margin VPC business is expected to grow by a double-digit percentage next year compared with this year, which would boost VPC’s contribution to more than 25 percent of overall revenue, CHPT president Scott Huang (黃水可) told reporters on the sidelines of a media briefing in Taipei.
The company reported NT$1.06 billion (US$36.16 million) in revenue last quarter, with VPC accounting for 22 percent.
Photo: Lisa Wang, Taipei Times
“We are cautiously optimistic about next year’s business,” Huang said. “The main growth drivers are VPC and HPC.”
CHPT plans to boost its needle planting machines’ monthly capacity by more than 66 percent before the end of the year to 1 million pins from 600,000 pins now, Huang said.
Testing demand for 5G-related chips are also on the rise, as 5G smartphone production is forecast to surge to more than 500 million units next year from an estimated 206 million units this year, he said.
CHPT is also gaining new customers in other fields, as a growing number of companies worldwide are attempting to develop their own chips, he added.
CHPT said it has a good chance to break into the world’s top 10 probe card suppliers this year, after ranking 18th last year.
Asked about order losses from Huawei Technologies Co (華為) due to the US’ export restrictions, Huang said that orders from new customers would fill the void left by the Chinese company, although the adjustments might take some time.
CHPT counts the world’s two major 5G chip suppliers — Qualcomm Inc and MediaTek Inc (聯發科) — among its top clients.
Taiwan Semiconductor Manufacturing Co (台積電), the sole chip supplier to Apple Inc’s iPhone series, is also a customer.
Gross margin rose to 54.1 percent last quarter, from 52.6 percent in the first quarter and 51.9 percent in the second quarter of last year, company data showed.
Gross margin next year is forecast to range between 50 and 55 percent, Huang said.
CHPT said that it set up a smart automation business group earlier this month.
The company is showcasing its smart manufacturing solutions using artificial intelligence technology at the three-day through today in Taipei.
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