High-speed data transmission chip designer ASMedia Technology Inc (祥碩) yesterday said revenue would grow sequentially next quarter, fueled by robust upgrade demand for USB 4.0 technology and increased demand for Advanced Micro Devices Inc’s (AMD) desktop chips and motherboards.
ASMedia said it expects to benefit from AMD’s share gains over Intel Corp in the desktop computer processor and motherboard market, as Intel is apparently facing challenges to introduce new processors such as the Arrow Lake central processing unit.
“That is prompting strong sales of AMD’s high-end X870 motherboard, as well as ASMedia’s revenue. We expect AMD to maintain the strong growth momentum through the first half of next year,” ASMedia president Lin Che-wei (林哲偉) told reporters following the company’s annual shareholders’ meeting in Taipei.
Photo: Lisa Wang, Taipei Times
“ASMedia is growing together with the customer as it keeps winning market share,” Lin said.
Strong demand led to supply constraints in the initial stages, but the issue has been resolved, he said.
ASMedia helps design motherboard chipsets for AMD desktop platforms, with the Taiwanese company responsible for the input and output functionality and features that connect the central processing unit to the motherboard and other devices.
ASMedia is in talks with a second customer about designing motherboard chipsets, Lin said.
As AMD’s X870 motherboard gains traction, it also helps boost demand for ASMedia’s USB 4.0 chips as such high-speed data transmission technology comes standard with the motherboard, he said.
ASMedia expects the chipset designing business for AMD and its own-brand USB 4.0 chips to continue driving the company’s revenue growth through next quarter.
“The visibility for the third quarter is clear. It will be a better than the second quarter, even without including revenue from newly acquired Techpoint Inc,” Lin said.
With the participation of Techpoint, ASMedia expects its own-brand chip revenue to rise gradually to make up half of the company’s total revenue, with revenue from the AMD motherboard chipset designing business accounting for the other half, he said.
Overall, revenue this year would exceed last year’s NT$8.08 billion (US$272.3 million), Lin said.
ASMedia earlier this year projected that revenue would expand at a double-digit percentage compared with last year.
Gross margin would be the company’s target range of 50 to 55 percent, after factoring in the impact of the appreciation of the New Taiwan dollar, Lin said.
Every 1 percent appreciation in the NT dollar against the US dollar would reduce the company’s gross margin by 0.1 to 0.2 percentage points, he said.
ASMedia expects the foreign exchange rate risk to minimize next quarter as its US dollar cash position dwindles.
The company has spent all US$330 million it raised through issuing global depository receipts last year on acquiring Techpoint, Lin said.
ASMedia shareholders yesterday approved a cash dividend of NT$30 per common share, the highest in the company’s history. That represented a payout ratio of 58.17 percent based on the company’s earnings per share of NT$51.57 last year.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
Popular vape brands such as Geek Bar might get more expensive in the US — if you can find them at all. Shipments of vapes from China to the US ground to a near halt last month from a year ago, official data showed, hit by US President Donald Trump’s tariffs and a crackdown on unauthorized e-cigarettes in the world’s biggest market for smoking alternatives. That includes Geek Bar, a brand of flavored vapes that is not authorized to sell in the US, but which had been widely available due to porous import controls. One retailer, who asked not to be named, because
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
Prices of gasoline and diesel products at domestic fuel stations are this week to rise NT$0.2 and NT$0.3 per liter respectively, after international crude oil prices increased last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week snapped a two-week losing streak as the geopolitical situation between Russia and Ukraine turned increasingly tense, CPC said in a statement. News that some oil production facilities in Alberta, Canada, were shut down due to wildfires and that US-Iran nuclear talks made no progress also helped push oil prices to a significant weekly gain, Formosa said
RSS