Novatek Microelectronics Corp’s (聯詠) second-quarter revenue fell short of its expectations, as last month’s revenue fell 25.68 percent month-on-month on dwindling demand, the designer of driver ICs used in flat panels said yesterday.
Revenue fell to NT$8.16 billion (US$273.7 million) last month, compared with NT$10.98 billion in May, as display driver IC revenue plummeted 21.2 percent and system-on-a-chip (SoC) revenue dipped 35.27 percent, Novatek said.
Second-quarter revenue declined 13.83 percent to NT$31.46 billion from NT$36.51 billion in the first quarter, it said.
Photo: Grace Hung, Taipei Times
The company in May estimated revenue would be NT$34.5 billion to NT$35.8 billion, as it expected a bigger correction in the market for driver ICs used in smartphone displays.
It at the time expected sales from display driver ICs for TVs to drop quarter-on-quarter, while SoC revenue might grow.
Compared with the previous year, second-quarter revenue tumbled 29.55 percent from NT$11.58 billion.
The company attributed the decline in sales to sagging market demand for consumer electronics amid growing uncertainties, including high inflation, central banks’ rate hikes, Russia’s war in Ukraine and COVID-19 lockdowns in China.
The firm has low visibility for the third quarter, Novatek president Steve Wang (王守仁) said in May.
Separately, United Microelectronics Corp (UMC, 聯電) yesterday said revenue rose 1.64 percent month-on-month to NT$24.83 billion last month from NT$24.43 billion in May, expanding 43.2 percent annually from NT$17.34 billion in June last year.
Second-quarter revenue grew 13.62 percent quarter-on-quarter to NT$72.06 billion, largely matching the chipmaker’s estimate as an ongoing chip crunch helped boosted average selling prices, it said.
UMC said it is to allocate NT$8.8 billion to construct so-called P3 facilities at its fab in Singapore, accounting for a major portion of the chipmaker’s capital spending of US$3.6 billion for this year.
The company has completed the capacity expansion at its P5 facility in a fab in Tainan and is working to next year ramp up production at its P6 facility in the same city.
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