LCD panel maker Innolux Corp (群創) yesterday reported an eight-quarter losing streak due to reduced working days from the Lunar New Year holidays and slack seasonality last quarter.
Losses widened to NT$4.1 billion (US$126 million) from NT$3.24 billion in the fourth quarter last year. Compared with the same period last year, losses have narrowed significantly from NT$7.77 billion.
Innolux’s average selling price dropped for the third consecutive quarter to US$263 per unit last quarter, sliding about 2.23 percent from US$269 in the fourth quarter last year.
Photo: Chen Mei-ying, Taipei Times
Innolux said the prices of TV panels climbed last quarter, benefiting from restocking demand as major sports games, including the Paris Olympics and UEFA Euro, are set to take place in the second half of this year.
Gross margin improved to 4.2 percent last quarter from 3.4 percent in the third quarter and minus- 7 percent in the first quarter of last year. Revenue shrank 5 percent quarter-on-quarter, but rose 11 percent year-on-year, to NT$50.49 billion in the first quarter.
“With the world’s three major sports events approaching, [TV vendors’] new product launches and China’s 618 promotion activities should stimulate panel demand during the second quarter,” it said yesterday, adding that factory utilization and production efficiency would be enhanced to match market changes and customer demand.
Large-sized panels, mostly used in TVs and computers, are expected to grow about 13 or 14 percent this quarter, while the average selling prices for those panels would climb about 5 percent sequentially this quarter, it said.
However, shipments of its small and medium-sized panels used in smartphones and cars are expected to drop about 7 or 8 percent on a quarterly basis, it added.
Innolux’s board of directors has approved a capital spending budget of NT$21 billion for this year, slightly lower than last year’s NT$22.5 billion.
It is accelerating its transformation efforts to expand into advanced chip packaging, auto displays and other new businesses beyond flat panels, Innolux said, adding that non-display products made up 28 percent of the company’s total revenue last year.
Innolux’s board of directors also approved a NT$10.89 billion capital reduction by canceling 1.089 billion shares, a 12 percent reduction of its total capital shares, it said, adding that the company would return NT$1.2 per share to shareholders.
After the latest adjustment, Innolux would have 7.99 billion in capital shares.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS