Taiwan power semiconductor packaging and testing specialist GEM Services is expected to see its revenues for the fourth quarter of 2017 hit a new quarterly high of NT$800 million (US$26.63 million) with profits of up to NT$200 million, and its net EPS for 2017 is estimated at NT$5.70-6.00, according to industry sources.
The company has reported revenues of NT$277 million, hitting a record monthly high and surging 6.77% on year, with its combined revenues for the first 11 months of the year rising 3.54% on year to NT$2.796 billion.
The revenue growth was attributed to stable orders from international IDM (integrated device manufacture) customers for packaging and testing high-voltage MOSFET (metal-oxide-semiconductor field-effect transistor) chips.
With relatively clear order visibility, GEM is expected to see revenues stay at high levels for December and the first quarter of 2018 except for the month of February, which will see the Chinese New Year holidays.
Power modules packaging and testing now commands only 10% of GEM's business revenues, with the automotive electronics chips segment accounting for only 3%. But industry sources said the company is expected to enjoy increasing business in packaging and testing power semiconductor solutions for use in electric cars, advanced driver assistance systems (ADAS), LV4-5 autonomous vehicles, which many IDMs such as Infineon, NXP, and Renesas Electronics are actively developing.
As one of few Taiwan players dedicated to power semiconductor packaging and testing services, GEM now has IDMs account for 50% of its customers and is able to enjoy constant influx of orders from IDMs, particularly those providing MOSFET chipset solutions. At the moment, the firm's plant in Hefei, Anhui province, China, is busy with packaging and testing medium to high-voltage MOSFET chips, with monthly capacity estimated to rise to 20 million pieces by the end of 2017, the sources said.
Article translated by Willis Ke
