Chunghwa Precision Test Technology Co’s (CHPT, 中華精測) revenue plummeted about 41 percent quarter-on-quarter to NT$679.3 million (US$22.3 million) during the first quarter as customers continued to digest inventory, although signs of a recovery can be seen, it said yesterday.
First-quarter revenue on an annual basis contracted 18.6 percent from NT$829.1 million, and dropped to its lowest level since the second quarter of 2019.
The wafer and chip testing service provider said it has seen marked signs of recovery in the second quarter, as revenue grew 5.8 percent last month to NT$236 million from a month ago, CHPT said.
Photo: Grace Hung, Taipei Times
A rise in demand for high-performance-computing (HPC) devices, smartphones and new business from new driver IC testing services is expected to help CHPT regain growth momentum, the company said in a statement.
“The semiconductor industry last month remained in an inventory correction cycle, although some customers have seen recovering demand upon releasing new chips, including HPC chips and 5G-enabled application processors,” the company said, adding that its probe card sales rebounded last month and contributed about 30 percent to its sales.
Although the company’s first-quarter revenue was lower than a year earlier, “the industry has entered a gradual recovery period,” it said.
Consumer electronics demand this quarter is expected to improve amid eased COVID-19 restrictions, CHPT said.
The company’s revenue growth would be driven by new testing services for display driver ICs for the first time, it added.
As the driver IC segment is to enter its peak season, CHPT expects probe card revenue to contribute about 40 percent of its total revenue this month, compared with 18 percent in the final quarter of last year.
Probe card business comprised 26 percent of CHPT’s overall revenue last year, down from 40 percent in 2021.
CHPT president Scott Huang (黃水可), who told investors last week that the first quarter posed challenges to revenue and gross margin, said the company still aims to grow revenue this year, backed by new testing services for driver ICs and artificial intelligence chips.
Gross margin is predicted to recover to 50 percent in the second half of this year, the company said.
CHPT serves about 200 customers including Nvidia Corp and Qualcomm Inc.
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