Ta Liang Technology Co (大量), an advanced chip packaging equipment and printed circuit board (PCB) drilling machine supplier, yesterday reported a spike in net profit for the first half of the year, as strong demand for artificial intelligence (AI) applications and data centers persisted.
Net profit surged to NT$265 million (US$8.86 million) in the first half, compared with NT$9.51 million in the same period last year. Earnings per share jumped to NT$3.01 from NT$0.12.
Ta Liang expects the growth momentum to be stronger in the second half of this year, as the company has received new orders of 397 units of high-end machines, nearly tripling the 139 units it has shipped so far.
Photo: AFP
That would reflect in sequential growth of revenue in the second half, compared with NT$2.11 billion in the first half, the company said.
“We are positive about the second half outlook based on the orders received, which are higher than the first half. We are aggressively looking for new capacity as our factories are almost fully utilized, Ta Liang president Jackie Chien (簡禎祈) told an online investors’ conference yesterday.
The delivery schedule for some machines is being pushed back to the first quarter of next year due to capacity constraints, Chien said.
Ta Liang expects its new factory in Nanjing, China, to start operations later this year, he said.
The outlook for next year is also positive, attributable to the AI boom, which has stimulated increasing demand for PCBs and therefore advanced back drilling machines, Chien said.
The company plans to launch a new high-end PCB inner layer thickness metrology machine to cope with customers’ technology road maps, he said.
Ta Liang said the high-end machine’s revenue contribution climbed to 50 percent in the first half of this year, compared with 20 to 30 percent in the past. That has helped propel its gross margin to 37.03 percent in the first half from 23.24 percent a year earlier.
By business segment, PCB machines made up 90 percent of the company’s revenue in the first half. Semiconductor equipment accounted for 10 percent by supplying metrology and inspection equipment used for advanced chip-on-wafer-on-substrate, system-on-integrated chips and panel-level packaging technologies.
Ta Liang counts Taiwan Semiconductor Manufacturing Co (台積電) and ASE Technology Holding Co (日月光投控), the world’s largest chip packaging and testing service provider, as its major customers.
The company expects little impact from the US tariffs as Taiwan, China and Thailand are its major shipment destinations, Chien said.
Customers would pay the tariff costs on its edge coating machine that is to be shipped to the US customers, the company said.
Edge coating machines only contributed 5 percent to the company’s revenue.
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