Chip testing interface supplier WinWay Technology Co (穎崴) yesterday said it would double its probe capacity next year to meet strong chip testing demand for artificial intelligence (AI) applications and servers.
The company also downplayed concerns over a potential AI bubble, saying demand for WinWay’s testing services and products has been strong since last year, and that it has not seen signs of weakness.
“Strong customer demand is pushing up factory utilization to a nervous level in the fourth quarter,” WinWay chairman Mark Wang (王嘉煌) said. “We are pretty optimistic about market demand and expect our revenue to grow next year.”
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WinWay expects double-digit percentage growth in revenue next year, Wang said.
Revenue for the first three quarters of this year surged 32 percent year-on-year to NT$5.62 billion (US$179.6 million), with AI and high-performing computing applications accounting for 44 percent.
Coaxial sockets made up 41 percent, followed by vertical probe cards at 32 percent, company data showed.
A probe card is an interface tool used in semiconductor manufacturing that creates an electrical connection between an IC on a silicon wafer and automated test equipment to identify defective chips. Probes are the microscopic needles on the card that make direct contact with the wafer's test pads.
With strong market demand, WinWay plans to expand its probe capacity to about 6 million to 7 million units per month at its Kaohsiung plant, compared with 3.5 million units now, Wang said.
The strong momentum is not limited to AI and advanced chips, but also extends to less advanced chips, he added.
A growing number of large companies, including cloud service providers, are also seeking to develop their own AI chips, which would underpin the market’s further growth, Wang said.
WinWay is next year planning to build its first manufacturing plant in Arizona, in response to US customers’ demand for local capacity amid geopolitical risks, he said, adding that some customers are requesting a third manufacturing site based on their “no China, no Taiwan” policy.
The US factory is expected to start operations in the second half of next year, focused on coaxial sockets and probe cards used in advanced packaging technology, Wang said.
The company plans to invest between NT$500 million and NT$1 billion in the US plant, he added.
WinWay’s new micro electro mechanical systems (MEMS) probe card is making progress, as a major project is entering the second phase of a partnership with a customer, Wang said, adding that it had a larger scale and longer supply agreement of at least five years.
A MEMS probe card is an advanced tool used for electrically testing semiconductor wafers.
The company said its net profit for the first three quarters soared by 43.72 percent annually to NT$1.19 billion from NT$828 million. Earnings per share leapt to NT$33.4 from NT$24.08, and gross margin rose to 46.62 percent from NT$42.25 over the period.
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