Pegatron Corp (和碩), which assembles iPhones and notebook computers, yesterday slashed its forecast for notebook computer shipments to a quarterly decline of between 5 and 10 percent this quarter as China’s COVID-19 lockdowns suspended productions and upended supply chain logistics.
That compared with the company’s previous guidance of a quarterly increase of between 25 and 30 percent this quarter.
Shipments of desktop computers and motherboards would drop by between 30 and 35 percent this quarter from last quarter, Pegatron said.
Photo: David Chang, EPA-EFE
Non-notebook computer business is to see a quarterly decline as well, it said.
In the January-to-March quarter, Pegatron reported a 64.3 percent year-on-year decline in net profit to NT$1.67 billion (US$56 million), from NT$5.22 billion, hitting the lowest level in about 11 quarters.
On a quarterly basis, net profit slumped 78.8 percent from NT$7.86 billion.
The weak performance was due to a non-operating loss of NT$449 million, mainly due to value impairment from its shareholding of China’s Luxshare Precision Industry Co (立訊精密). Pegatron holds about 0.57 percent of Luxshare.
Pegatron booked non-operating gains of NT$1.6 billion a year earlier and NT$3.59 billion in the previous quarter, company data showed.
Operating income surged 90.7 percent annually to NT$4.23 billion last quarter, but plunged 45.6 percent from NT$7.77 billion the previous quarter.
First-quarter revenue contracted 28 percent quarterly, but surged 49 percent annually to NT$324 billion last quarter, with communications products acounting for 60 percent of total sales, it said.
To boost capacity, Pegatron’s board of directors yesterday approved an additional investment of US$50.61 million in its US manufacturing facilities.
That followed the board’s approval in November last year of a proposal to invest US$164 million to expand its US plant.
The board also approved additional investment of US$40 million in its US subsidiary, Pegatron Electronics Inc, the company said in a regulatory filing.
AVOIDING CONFUSION: Passengers are to be able to check in two items of luggage, while the free weight allowance is to be increased to conform with other airlines EVA Airways Corp (長榮航空) yesterday announced that from June 23 it is to adopt a new baggage allowance policy for all passengers with a higher weight limit as it aims to benefit passengers and increase efficiency. The airline currently has a two-system baggage policy: It allows passengers flying to the US and Canada to check in two pieces of baggage with a free weight allowance, while for those flying to Asia, Europe and Oceania there is also a free weight allowance, but no limit on the number of pieces of baggage. From June 23, passengers would be able to check in two
MORE THAN BUZZ: The chip designer said it has received numerous orders from automakers to supply 5G modem chips, as it works to expand beyond smartphones MediaTek Inc (聯發科) yesterday said it would ship the first 5G chips for vehicles to customers in the Asia-Pacific region by the end of the year, as it moves to expand the reach of its 5G chips beyond smartphones. The Hsinchu-based chip designer said it has been developing 5G chips for connected vehicles over the past few years, targeting applications such as telematics and in-vehicle information systems. “We are seeing demand for 5G technology from numerous makers of connected cars, including electric vehicle makers. We have obtained numerous orders from automakers to supply 5G modem chips with highly integrated features,” J.C. Hsu
Qualcomm Inc yesterday said it would maintain its supply chain strategy of sourcing chips from multiple foundry partners, including advanced chips from two major suppliers, to ensure a sufficient chip supply amid the COVID-19 pandemic. Qualcomm is reportedly working with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co on advanced products, such as 4-nanometer chips, for its new flagship 5G chips, the Snapdragon 8+ Gen 1 series. Qualcomm is sourcing chips made by mature technologies from several foundry partners, the company said. Alex Katouzian, general manager of Qualcomm Technologies Inc’s mobile, compute and XR business, told a virtual media briefing that
US DRAM maker Micron Technology Inc is set to install the industry’s most cutting-edge technology — extreme ultraviolet (EUV) lithography equipment — in its facility in Taichung this year, the company said yesterday. In early preparation for the volume production of 1-gamma nanometer node DRAM, “we plan to introduce EUV tools to our Taichung fab later this year,” Micron president and chief executive officer Sanjay Mehrotra said via video at the Computex trade show in Taipei. Gamma refers to the dimension of half the distance between cells in a DRAM chip. Micron is also looking forward to beginning mass production of its