Semiconductor components distributor WT Microelectronics Co (文曄科技) yesterday said it expects revenue this quarter to grow 16.5 percent from a year earlier, after posting better-than-expected revenue and profit for last quarter.
Based on the exchange rate assumption of NT$30.6 per US dollar, the mid-point guidance for fourth-quarter revenue is about NT$305 billion (US$9.87 billion), the company said in a statement, compared with NT$261.88 billion the previous year.
The mid-point guidance for net profit this quarter is set at NT$3.75 billion, an annual increase of about 48 percent, while the mid-point guidance for earnings per share (EPS) is NT$3.2, up 41 percent year-on-year, it said.
Photo: screen grab from WT Microelectronics Co’s Web site
WT Microelectronics, which was established in 1993, partners with more than 400 suppliers across major technology segments and serves more than 25,000 customers worldwide.
The semiconductor market faced challenges amid uncertainties including tariffs and foreign exchange fluctuations in the first half of this year, the company said.
However, the situation gradually stabilized in the second half, and demand for artificial intelligence (AI)-related semiconductors continued to strengthen, driving strong growth in its revenue and profit in the third quarter, it said.
During the third quarter, net profit was NT$3.82 billion, up 35 percent both quarterly and annually, and exceeding the upper end of previous guidance of NT$3.44 billion, while EPS came in at NT$3.4, a record-high, the company said.
Third-quarter revenue was NT$328.9 billion, up 27 percent quarter-on-quarter and 26 percent year-on-year, which also exceeded the upper end of its guidance of NT$299.5 billion, it added.
In the first three quarters of this year, the company earned NT$9.35 billion, up 42 percent year-on-year, with EPS of NT$8.11, while cumulative revenue grew 20 percent to NT$835.9 billion.
This quarter, sales of semiconductors used in data centers and servers are forecast to be slightly lower than last quarter, but significant market demand is expected to follow next year, the company said.
Sales of semiconductors for the consumer electronics, PC and mobile phone segments are also likely to decline from the previous quarter due to the traditional off-season effect, it said.
In non-AI segments, while there is still some inventory digestion of automotive semiconductors throughout the supply chain, the overall situation has stabilized, the company said, adding that it expects sales on this front to see a low single-digit percentage increase from last quarter.
Sales of industrial semiconductors this quarter are likely to see a low single-digit sequential decline as markets in Europe and the US enter a slow season, but the year-on-year growth trend remains unchanged, it said.
WT Microelectronics said it expects demand for AI to remain strong next year, particularly reflected in the continued growth of semiconductor shipments to the data center and communications markets.
“According to data center expansion plans announced by major cloud service providers, investment momentum in AI infrastructure is expected to persist, with demand for AI semiconductors likely to maintain a strong growth trajectory next year,” it said.
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Nissan Motor Co has agreed to sell its global headquarters in Yokohama for ￥97 billion (US$630 million) to a group sponsored by Taiwanese autoparts maker Minth Group (敏實集團), as the struggling automaker seeks to shore up its financial position. The acquisition is led by a special purchase company managed by KJR Management Ltd, a Japanese real-estate unit of private equity giant KKR & Co, people familiar with the matter said. KJR said it would act as asset manager together with Mizuho Real Estate Management Co. Nissan is undergoing a broad cost-cutting campaign by eliminating jobs and shuttering plants as it grapples
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
RSS