TAIPEI (Taiwan News) — Holtek Semiconductor President Tsai Jung-tsung (蔡榮宗) said Tuesday the company will see growth in Q1, defying expectations of a seasonal slump.

At a media briefing on Tuesday, Tsai explained that inventory adjustments by distributors and agents had impacted sales, leading to a 4% year-over-year decline in the microcontroller manufacturer’s total revenue for 2024 to NT$2.5 billion (US$76 million), per CNA.

The company also reported a net loss of approximately NT$150 million, translating to an earnings per share loss of NT$0.66, per UDN. However, Tsai said that as inventory levels return to a healthier state, demand is expected to rebound this year, potentially driving revenue growth compared to last year.

Although Q1 is traditionally a slow season due to the Lunar New Year holiday, current order levels suggest that performance this quarter may not follow the usual downturn. Revenue is likely to remain stable or increase compared to Q4 2024, Tsai explained.

Holtek shipped approximately 20 million security-related chips in 2024 and has received an order for 15 million units from a North American client, per CNA. Tsai expects the client’s demand to reach 20 million units this year, potentially doubling the company's security product shipments.

Additionally, shipments of induction cooktops and brushless DC motor products are expected to grow this year. Regarding US President Donald Trump’s tariffs on Taiwanese chips, Tsai said that the situation remains uncertain and further observation is needed.