Major Taiwan-based backend houses ASE Technology Holding and Powertech Technology (PTI) have both reported sequential decreases of 22.1% and 13.2%, respectively, in consolidated revenues for the first quarter of 2019.
Formed as a result of Advanced Semiconductor Engineering's (ASE) merger with Siliconware Precision Industries (SPIL) in April 2018, ASE Technology reported March consolidated revenues grew 12.7% sequentially to NT$29.57 billion (US$958.6 million). Sales of the group's IC assembly, testing and material unit increased 14.4% on month to NT$16.68 billion.
ASE Technology indicated its core IC ATM business generated revenues of NT$54.37 billion in the first quarter of 2019, down 15.2% sequentially, while the group's consolidated revenues came to NT$88.86 billion.
ASE Technology disclosed previously the group will be enhancing its system-in-package (SiP) and fan-out packaging offerings in 2019. Annual revenues generated from the group's SiP and fan-out packaging are expected to grow by US$100 million and US$50-100 million, respectively, in the next few years.
ASE Technology also expects the synergy combining the group's IC ATM expertise with Universal Scientific Industrial Shanghai's (USI) specialization in module-level manufacturing services will help grow its business in the 5G field.
Memory backend specialist PTI announced consolidated revenues of NT$4.92 billion for March 2019, up 13.3% on month but down 12.9% from a year earlier. Consolidated sales for the first quarter arrived at NT$14.43 billion, down 9.3% from the same period in 2018.
PTI was quoted in previous reports indicating the company will be conservative about capex this year, with advanced packaging and new technology R&D remaining the focus of its capex.
Article translated by Jessie Shen
