Chunghwa Precision Test Technology Co (CHPT, 中華精測), a supplier of probe cards used for silicon wafer testing, yesterday said it is targeting annual revenue growth for next year, driven by rising shipments of 5G smartphones and demand for artificial intelligence (AI) applications.
The company, based in Taoyuan’s Pingjhen District (平鎮), said it is confident about next year’s business outlook, as it has diversified customer and product portfolio to reduce negative effects from any single customer.
As 5G networks worldwide are approaching completion, the industry is to embrace the growth of emerging AI-related applications built on the ultra-high-speed networks — such as big data, smart homes and electric vehicles — in the next two-and-half years, CHPT president Scott Huang (黃水可) told investors at a virtual conference arranged by the Taipei Exchange.
Photo courtesy of Chunghwa Precision Test Technology Co
Chips used in those devices are mostly made by CHPT’s customers, Huang said.
“There is no reason to be pessimistic about the company’s operations next year. It is the company’s target to pursue growth,” Huang said.
Global shipments of 5G smartphones are to more than double to 536 million units next year, from 225 million units this year, Huang said.
That portends a good growth opportunity for wafer and chip testing for 5G chips, he said.
Power management ICs and antenna modules used in 5G-enabled devices would also drive testing demand, he added.
Next year, smartphone application processors would continue to be the largest revenue source for CHPT, contributing a more than 50 percent share, the company said.
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.
Huang downplayed the impact of the US’ export restrictions on Huawei Technologies Co (華為).
“Our customers come from all around the world. Any geopolitical tension will only lead to a shift in the industrial landscape” and would not affect global demand, he said.
CHPT expects revenue contribution from its new vertical probe cards (VPC) business to bounce back this quarter or next year after a major customer’s next-generation radio frequency chip enters the market.
The product transition period caused a slide in the company’s VPC revenue contribution to 16 percent last quarter from 22 percent in the prior quarter.
However, CHPT’s revenue still climbed to a historical high last quarter at NT$1.2 billion (US$4.16 million).
Third-quarter net profit expanded 15.81 percent to NT$286.74 million, from NT$247.59 million in the same period last year, hitting an all-time high. That represented quarterly growth of 23 percent from NT$233.24 million.
Earnings per share surged to NT$8.75, compared with NT$7.55 a year earlier and NT$7.11 in the prior quarter, while gross margin improved to 55 percent from 54.8 percent a year earlier and 54.1 percent a quarter earlier, the company said.
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