Consumer IC packaging company Greatek Electronics (GTK) expects its average monthly utilization rate in the fourth quarter this year to drop to around 50% due to low order volumes.
The company's lead-frame IC packaging business accounts for around 90% of total revenues, while IDM business accounts for less than 5%.
The company pointed out that the peak season normally falls in October and November, while the slow season starts in November or December. However, the company's order volumes in the fourth quarter this year have been lower than expected, with utilization dropping from 60-70% in October to close to only 50% in November. In December the rate has already dropped below 40%, generating a monthly average of around 50% for the quarter.
The company expects to see losses in regards to its December performance, but still expects to break even for the quarter.
Article translated by Joseph Tsai
