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Siliconware Q2 net profit up over 40%

Siliconware Q2 net profit up over 40%

Taipei, July 29 (CNA) Siliconware Precision Industries Co.,one of Taiwan's leading integrated circuit packaging and testing services providers, said Wednesday that its net profit for the second quarter rose more than 40 percent from a quarter earlier.
Market analysts attributed the growth to Siliconware's efforts to improve its product portfolio by adding more high-end devices into the product mix, a move that boosted the company's profit margin.
In an investor conference, Siliconware said that it posted NT$3.68 billion (US$117 million) in net profit, up 40.7 percent from a quarter earlier, and also up 9 percent from a year earlier.
Its second-quarter earnings per share (EPS) stood at NT$1.18, up from the first quarter's NT$0.84, beating an early market forecast of about NT$1.0.
In the three-month period, Siliconware witnessed its gross margin improving to 27.2 percent from 26.2 percent, while its operating margin rose to 16.9 percent from 16.7 percent.
Siliconware said that IC packaging and testing services for chips used in communication devices made up 66 percent of its total revenue, worth NT$21.24 billion in the second quarter, while services for chips used in consumer electronics accounted for 21 percent of the sales and services for chips used in computers represented 10 percent of the revenue.
Looking ahead, Siliconware Chairman Bough Lin said that the company's revenue generated from packaging and testing services for chips used in communications and computers is likely to fall at a double-digit pace in the third quarter due to prolonged inventory adjustments in the global IC business.
Lin said that a stronger U.S. dollar is expected to continue to compromise global consumption of high-tech devices.
In the third quarter, Lin went on, Siliconware is expected to post NT$18.6 billion to NT$19.8 billion in sales, down 6.7-12.4 percent from the second quarter. Its gross margin for the third quarter could range between 22.5 percent and 24.5 percent and its operating margin is expected to range between 12.5 percent and 14.5 percent.
Lin said that the global semiconductor industry is likely to see a rebound in the fourth quarter, when rush orders are expected to emerge to meet rising demand during the Christmas season. (By Jalen Chung and Frances Huang)


Updated : 2021-09-28 09:21 GMT+08:00