Shares of Taiwan-based IC substrate maker Kinsus Interconnect Technology fell the 7% daily limit to close at NT$80 (US$2.49) on the Taiwan Stock Exchange (TSE) on January 28 after the company's major customer Qualcomm cut its revenue forecast for fiscal year 2010 (October 2009-September 2010) to US$10.4-11 billion, from the US$10.5-11.3 billion projected previously.
Kinsus saw revenues drop about 11% in November and 16% in December as customers were conducting their inventory taking. It has seen orders recover recently and expects revenues in first-quarter 2010 to decline only slightly. Market watchers estimate the company's first-quarter revenues will drop by 1-5% sequentially.
Kinsus' revenues from flip-chip chip-scale packaging (FC CSP) substrates are likely to grow at least 30% in 2010 as Qualcomm is expected to adopt the substrates in all of it handset chips, the observers added.
Article translated by Meiling Chen
