ASE Technology Holding Co (日月光控股) yesterday reported that its net profit more than doubled to a record NT$14.18 billion (US$509.45 million) last quarter, as it operated near full capacity due to robust demand from the computer and communications segments.
That compared with a net profit of NT$6.71 billion a year earlier and NT$10.34 billion in the previous quarter. Earnings per share rose to NT$3.29 last quarter, compared with NT$1.57 the previous year and NT$2.4 the prior quarter.
Gross margin improved to 20.4 percent last quarter. It was 16 percent a year ago and 19.5 percent in the second quarter.
Photo: Grace Hung, Taipei Times
ASE said it expects this quarter to be “flattish,” with revenue approaching last quarter’s NT$88.79 billion, due to a shortage of wafers and substrates.
Revenue from its electronics manufacturing services (EMS), primarily its system-in-a-package (SiP) service, should increase to about NT$79.14 million from last quarter’s NT$61.12 billion, the company said.
However, the company said it would likely miss its operating profit margin target of 4 percent for the EMS business this year, due to component shortages and supply chain disruptions.
“What we are seeing is some softness in demand in certain areas, but, in general, the whole industry is still going through rapid growth,” ASE chief financial officer Joseph Tung (董宏思) told investors during a teleconference.
“Customers are seeking to secure more supply,” he said.
Factory utilization is to stay at a high level of 85 percent for its chip packaging services and 80 percent for its chip testing services, similar to last quarter’s levels, he said.
Despite noises about double booking and potential softness in end product demand, ASE said it believes there is still substantial pent-up demand.
The Kaohsiung-based company said it expects its business to continue growing next year, with a better-than-seasonal outlook for the first quarter of next year.
The company said it continues “to have strong order flows from a vast majority of our customers, with orders well extending into 2022 and some in 2023, well beyond normal booking time.”
ASE said it also expects to see a “friendly pricing environment” next year, indicating an upside for prices.
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