Advanced Semiconductor Engineering (ASE) is estimated to see its gross margin climb 3.3pp sequentially to 25% in the third quarter of 2009, in line with better revenue growth, according to market watchers. The IC packaging house has enjoyed more outsourcing demand from IDMs, especially Japan-based clients.
ASE's third-quarter revenues rose 20.7% sequentially to NT$25.205 billion (US$784.68 million), outperforming market watchers' estimates of 15%. The watchers noted ASE may see orders for the fourth quarter slide 5% on quarter due to less demand from MediaTek, but still manage a gross margin growth driven by contributions from orders for Qualcomm's 45nm-made smartphone chips and new graphics processors.
In response, ASE said fourth-quarter revenues may stay close to levels in the third-quarter. Demand for PCs and consumer electronics is picking up, whereas handset chip customers are slowing down their pace of orders. ASE declined to comment on the status of individual customers.
Regarding concerns about a recent rally in gold prices, ASE said the impact on its profitability will not be seen until the fourth quarter. The backend supplier in previous reports said it is shipping more packaged ICs processed with copper wire bonding, and expects a broader adoption of copper wire bonding across wireless and consumer electronics applications in 2010 and 2011.
A Bloomberg report cited an investor as saying that gold will probably top US$2,000 an ounce in the next decade. The price touched a high of US$1,051.51 an ounce on October 8.
Article translated by Jessie Shen
