The semiconductor foundry Powerchip’s revenue in March was NT$3.68 billion, a year-on-year decrease of 3.88%.
Miaoli County Government guided Powerchip in applying for the subsidy scheme for low-carbon and intelligent upgrading transformation in the manufacturing industry and received a total of NT$25.5 million in subsidies. It is hoped that through the optimization benefits of energy saving and carbon reduction, the effect will spread, simultaneously reducing carbon with supply chain manufacturers, ensuring the competitive advantage of the integrated circuit industry. Powerchip and its supply chain manufacturers declared in the morning that they would continue to work together towards the goal of joint carbon reduction.
Since 2021, Powerchip has invested NT$278 billion in Miaoli to build two new factories and announced an additional investment of NT$60 billion over the next three years. Currently, one new factory in Tongxiao is expected to be completed and operational in May, providing over 3,600 job opportunities, indirectly promoting the development of local collaborative manufacturers, and bringing employment opportunities to the surrounding area.
Powerchip’s supply chain manufacturers include San Fu Chemical, Song Jin Technology, Zhi Sheng Technology, Jing Yang Technology, Feng Kui Technology, Ju Mao Application Materials, Jian Hong Technology, Paid Engineering, Jiu Fu Metal Industry, and Jiu Xuan Technology, a total of 10 enterprises.
Powerchip’s general manager, Xie Zaiju, pointed out that after the subsidy program was launched, Powerchip estimated that it would reduce carbon emissions by about 50,000 tons per year, save 7 million degrees of electricity, and the carbon reduction effect would gradually extend to suppliers.
Additionally, in March, World Advanced’s consolidated revenue was NT$3.62 billion, continuing the better-than-expected trend from February, with a month-on-month increase of 17.41% and a significant year-on-year increase of 44.82%, reaching an 18-month high. The spokesperson stated that the increase in revenue in March was mainly due to an increase in wafer shipments, and the company is optimistic that its operations will gradually warm up quarter by quarter this year.
March’s revenue was significantly better than market and company expectations, with the cumulative consolidated revenue for the first quarter of the year being NT$9.633 billion. Although it is still a slight decrease of 0.32% from the previous quarter, it has increased by 17.66% compared to the same period last year.
Looking ahead to this year’s operational outlook, World Advanced’s chairman Fang Lue pointed out that global consumer electronics have been undergoing intense inventory adjustments since the second half of 2022, and the adjustment period has now exceeded a year and a half. It is expected that consumer electronics will gradually return to their usual seasonal growth pattern, but industrial and automotive electronics are still adjusting their inventories. After one to two-quarters of inventory adjustment, this process is also expected to be completed.
Therefore, Fang Lue stated that World Advanced’s operations in the first quarter of this year should meet targets without any problems and is optimistic about a gradual and moderate recovery in subsequent operations.
World Advanced is also optimistic about the continued expansion of the transfer order effect this year and declares that it will not engage in price competition with mainland wafer fabs, which is beneficial to this year’s profit performance.
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