Formosa Sumco Technology (FST) will be striving to grow its customer base in China and other non-Taiwan markets, according to the Taiwan-based silicon wafer supplier.
The move is to be in a better position to counter headwinds facing the silicon wafer market, as well as to pursue sustainable growth for the company, said FST at a recent shareholders meeting.
FST posted a nearly 60% surge in net profits last year, when silicon wafer shortages in the market pushed up its product ASPs.
However, silicon wafer demand has turned weak in 2019, FST indicated. With a lack of orders based on long-term supply contracts, FST has seen its revenues plummet thus far this year.
FST reported net profits declined 8.2% from a year earlier to NT$1.04 billion (US$33.1 million) in the first quarter of 2019, when revenues decreased 13.6% to NT$3.64 billion.
FST disclosed its cumulative 2019 revenues through May fell 14.5% on year to NT$5.55 billion.
FST is a silicon wafer joint venture of Sumco Techxiv and Taiwan's Formosa Plastics Group, and ships products to mainly Taiwan- and China-based logic and memory foundries.