Yageo Corp (國巨), the world’s No. 3 multilayer ceramic capacitor (MLCC) supplier, yesterday said that revenue would continue to grow sequentially this quarter, driven by resilient customer demand for premium passive components used in notebook computers, data centers and 5G-related devices.
The growth momentum is reflected in the firm’s strong book-to-bill ratio of 1.5, company chairman Pierre Chen (陳泰銘) told an online investors’ conference yesterday.
Lead times for high-end passive components stand at eight to 10 months, while Yageo only needs three months to ship standard passive components to its customers, Chen said.
Photo: Chang Hui-wen, Taipei Times
Yageo’s inventory has maintained at a low level of 60 days, he added.
“We have heard some noise about inventory in the standard product market. We are not concerned about demand in the premium market. Momentum in the premium market continues to build. We can continue to expect growth in the third quarter,” Chen said.
As it continues to expand in high-end markets, Yageo is confident that over the next two to three years, it can outpace the industry’s annual growth rate of 3 to 10 percent, Chen said.
In three years, premium products are expected to contribute 80 percent of total revenue, up from 75 percent, while standard products are likely to contribute 20 percent, down from 25 percent, Chen said.
The shift would help Yageo maintain a gross margin of more than 40 percent in the long term, as premium products tend to have a gross margin of more than 35 percent, he said.
In the long term, passive components used in vehicles are expected to be major drivers of growth, so the company plans to allocate 40 to 50 percent of the capacity at its new fab in Kaohsiung to that, Chen said, adding that the fab is under construction and would start production next year.
Yageo reported second-quarter net profit of NT$6.33 billion (US$225.49 million), an 11-quarter high and an increase of 92 percent annually, up from NT$3.3 billion, and 26 percent quarterly, up from NT$5.02 billion.
Earnings per share increased to NT$12.81, up from NT$7.01 a year earlier and NT$10.17 in the first quarter. Gross margin fell to 41 percent from 44.3 percent last year, but improved from 39.1 percent in the first quarter.
Yageo expects this quarter’s gross margin to resemble last quarter’s.
Revenue last quarter doubled to NT$27.71 billion from NT$13.47 billion last year, mostly due to the acquisition of US-based Kemet Corp. On a quarterly basis, revenue increased 16.7 percent, up from NT$23.75 billion.
MLCCs contributed the most revenue last quarter at 29 percent, followed by tantalum at 21 percent and chip resistors at 19 percent.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS