Taiwan's Top Two Chip Assemblers Issue Upbeat Q4 Forecast
Aug 02, 2012
Executives of Advanced Semiconductor Engineering Inc. (ASE) and Siliconware Precision Industry Co., Ltd. estimated their business for next quarter would surge in spite of low season thanks to a series of new products coming along.
The two companies, Taiwan's top two IC
packaging and test houses, recently held regular institutional investor conference respectively to offer second-quarter result and forecasts for this and next quarter.
Both companies coincidently made NT$0.48 per share in after-tax net income last quarter and felt that business would fail to materialize seasonal surge this quarter due to weak macro economy.
Last quarter alone, ASE had consolidated revenue of NT$32.4 billion (US$1 billion at US$1:NT$30) and gross margin of 22.4%, both toping market expectations. Its consolidated after-tax net income was NT$3.2 billion (US$100 million).
In the same quarter, Siliconware had consolidated revenue of NT$16.5 billion (US$551 million). Its gross margin hit 10 year high of 19.3%. Consolidated after-tax net income was NT$1.47 billion (US$49 million).
When it comes to outlook of this quarter, ASE's chief finance officer, Joseph Tung, felt that the company's consolidated revenue would increase 4-6% from last quarter whereas gross margin would be flat. Siliconware Chairman W.P. Lin estimated his company would see a 2-5% increase in revenue and gross margin rise to 20-22%.
As a whole, the two companies' operation for this quarter would lose steam, estimated to post growth rate far below the average some 10% quarter over quarter they had in past few years.
Lin pointed out that the European debt crisis has refrained growth in world major economies, putting a damper on world semiconductor market since late last quarter. However, brisk market of smartphones and tablet PCs shores up his bright expectation on semiconductor market. He noted that the two consumer electronics products have unseated shavers as the top two most wanted gifts in the upcoming Father's Day.
His personal perspective for next quarter is that iPhone 5 and Windows 8 would play the major market drivers.
ASE's Tung estimated that robust supply of 28nm process would give a boost to communications chip applications, revitalizing next quarter's semiconductor market.
source & copyright: CENS