Foundry chipmaker Powerchip Technology has reported net losses of NT$2.69 billion (US$85.7 million) in the first half of 2019. EPS was negative NT$0.85 for the six-month period.
Powerchip disclosed it earned a total of NT$59.19 billion during 2013-2018. The company swung to net loss in the first half of 2019 from profit of NT$5.21 billion a year earlier, when revenues declined 36.4% to NT$16.76 billion.
Powerchip attributed the revenue decrease to the US-China trade war impact and a slowdown in demand for memory chips. Powerchip makes memory chips, as well as LCD driver ICs, power management ICs and image sensors, on a contract basis.
Powerchip continued that sales generated from Taiwan and Japan all contracted in the first half of 2019, when the company also recognized NT$953 million in losses generated from its investment in a JV fab in Hefei, China.
Powerchip swung to operating loss of around NT$1.5 billion in the first half of 2019 from profit of NT$6.11 billion a year ago, when gross margin fell 28.1pp to 7.03%.
Article edited by Rodney Chan
