ProMOS Technologies has stated that uneven output at its new 12-inch fab at Taichung and, in addition, the huge cost of equipment depreciation will result in losses of several hundred million NT dollars in the first quarter, according to company chairman ML Chen, speaking at an April 11 shareholders meeting.
Chen explained that, at this stage, output at its second 12-inch fab (Fab 3) could not off-set the huge cost of equipment depreciation as well as related human-resources costs. Consequently, the company expects to see a loss in the first quarter.
Chen indicated that ProMOS had, so far, only managed to achieve output of several thousand wafers per month, at Fab 3. The company’s aim is to have a total capacity of 25,000 wafers per month at Fab 3, but output to date has not been sufficient to cover related costs of equipment and human resources, according to industry sources.
Despite having a weak first quarter, ProMOS is confident that there will be additional output of over 20,000 wafers in the second quarter. Altogether, the company expects quarterly output from Fab 3 should hit 40,000 in the second quarter, said Chen, as quoted in a report by the Chinese-language Economic Daily News (EDN).
Industry observers suggested that ProMOS is likely to reach breakeven in April on anticipated output of around 10,000 wafers and a stable average selling price (ASP). Chen admits seeing downside pressures on ASPs in the second quarter, but no rapid price fall seems in evidence.
In related news, ProMOS has approved the financial records for 2005. The company has reported a loss of NT$889 million for last year, with a net loss per share of NT$0.18. No dividend will be distributed for last year’s operation.
Article translated by Esther Lam and edited by Chris Hall
