Quanta Net Rises to Record as Sales Beat Forecasts


http://www.bloomberg.com/apps/news?pid=206...MGoT20QG9qPmeAw




By Tim Culpan

Oct. 30 (Bloomberg) -- Quanta Computer Inc., the world's largest maker of notebook computers, posted a record profit for the second straight quarter after laptop sales exceeded company forecasts. Shipments will rise next year, the company said.

Third-quarter net income climbed 36 percent to NT$5.24 billion ($162 million), or NT$1.51 per share, from NT$3.86 billion, or NT$1.15, a year earlier, the Taoyuan, Taiwan-based company said today. Quanta was expected to post a profit of NT$4.49 billion, according to the average of seven analyst estimates compiled by Bloomberg.

The company, whose customers include Acer Inc. and Hewlett- Packard Co., reported its highest quarterly shipments in the three months through September as mobile-computer sales in the U.S. outpaced desktops for the first time. Laptops will continue to gain share this quarter, with consumers opting for more mobility, according to researcher Gartner Inc.

``We have seen unusually strong mobile PC growth in the emerging regions,'' Gartner analyst Mikako Kitagawa said in an e- mail. Shipments in Asia-Pacific grew 23.4 percent in the third quarter, according to an Oct. 18 press release from Gartner.

Quanta's third-quarter sales climbed to NT$210.3 billion from NT$109.9 billion a year earlier. The company's shares fell 0.9 percent to NT$54.50 today, extending to 5.9 percent its decline this year, compared with the 25 percent gain in the benchmark Taiex index.

Shipment Forecast

The computer maker's notebook shipments rose 19 percent from the previous quarter to 8.8 million, outpacing the company's Aug. 31 guidance for growth of 15 percent. Quanta forecast shipments of 30 million notebooks this year, and predicted that in 2008 they would rise 20 percent to 36 million.

Mobile computers accounted for 40.8 percent of worldwide shipments in the third quarter, up from 38.3 percent in the second, and will probably rise to 42.8 percent this quarter, according to estimates by Gartner.

The overall market rose 14.4 percent from a year earlier to 68.5 million computers, led by Acer and Hewlett-Packard, which posted the strongest growth. Acer, the world's fourth-largest computer supplier, last week reported a 29 percent gain in third- quarter sales.

Quanta's gross margin, which measures sales minus the cost of goods sold, narrowed to 3.4 percent at the parent level excluding affiliates, from 5.1 percent a year earlier, the company said.

The company may invest next year in Chinese or Taiwanese component suppliers to cut costs and boost efficiency, Vice Chairman C.C. Leung said today in Taoyuan. Quanta is considering investments in suppliers of mechanical parts used in notebooks, he said, without providing details.

``It's a good thing that Quanta is trying to integrate with suppliers as notebook makers' profit margins are falling,'' said David Dong, who helps oversee the equivalent of $1.7 billion for President Investment Trust Corp. in Taipei and who doesn't own Quanta stock.

Taiwan's UMC says profit rises 7.5 percent in 3rd quarter



The Associated Press

Published: October 31, 2007

TAIPEI, Taiwan: Taiwan's United Microelectronics Corp. said in a statement Wednesday its third quarter net profit rose 7.5 percent to NT$9.23 billion (US$284 million; €200 million).

The company, the world's second-largest contract chip maker by revenue after Taiwan Semiconductor Manufacturing Co., didn't comment on the reasons for the increase.

The third quarter result was much higher than the average NT$6.96 billion forecast of 10 analysts surveyed by Dow Jones Newswires, and was also well above UMC's second-quarter net profit of NT$4.91 billion.

The company said in the statement its earnings per share for the quarter ended Sept. 30 were NT$0.57, up from NT$0.48.

Third quarter revenue rose 11.4 percent to a three year high of NT$31.03 billion from NT$27.85 billion a year earlier, and was also up 23.6 percent from the second quarter's NT$25.10 billion.
Today in Business
Fed lowers rates again amid U.S. housing crunch
IEA says oil prices will stay 'very high,' threatening global growth
Alcatel cuts deeper as makeover stalls

UMC's third-quarter non-operating income — from the sale of shares in other companies — totaled NT$5.76 billion, down from NT$6.44 billion a year earlier.

UMC's capacity utilization rate in the third quarter was 93 percent, up from 76 percent on the second quarter and 82 percent from the year-earlier period.

IBM and Taiwan's Mediatek launch chip R&D project


http://www.reuters.com/article/technologyN...TP4000320071022






TAIPEI (Reuters) - IBM (IBM.N: Quote, Profile, Research) and Taiwan's top chip design firm Mediatek Inc (2454.TW: Quote, Profile, Research) said on Monday they are jointly launching a research and development project to develop ultra-fast chipsets to tap into growth in the consumer market.

The project will integrate IBM's new millimeter wave (mmWave) radio chips and package technology with Mediatek's expertise in digital baseband and video processing chips, IBM said in a statement.

"This collaborative effort will enable consumers to wirelessly transfer large multimedia data files around their home and/or offices in seconds," said T.C. Chen, a vice president at science and technology, IBM Research, which has been engaged in mmWave technology R&D for the last four years.

No financial terms were given.

"This is a three-year joint development project," said Mehmet Soyuer, lead researcher in communication technologies at IBM's TJ Watson Research in Yorktown Heights, New York.

"We have plans to commercialize products resulting from the joint development, and Mediatek will decide on the brand name."

Mediatek announced last month that it was buying Analog Devices Inc's (ADI) (ADI.N: Quote, Profile, Research) wireless chip business for $350 million in cash, in a move expected to expand its share in China's huge mobile handset market.

In Taipei, Mediatek shares closed down 2.8 percent at T$590 on Monday, in line with a 2.6 percent drop on Taiwan's main TAIEX share index (.TWII: Quote, Profile, Research).

Macronix announces profit growth for third quarter




http://www.taipeitimes.com/News/biz/archiv...1/01/2003385810

By Kevin Chen

STAFF REPORTER
Thursday, Nov 01, 2007, Page 11
Macronix International Co (旺宏電子), which produces so-called ROM products and NOR flash memory chips for clients, yesterday said profits grew 89.91 percent year-on-year to NT$2.07 billion (US$64 million) in the third quarter on higher shipments.

The third-quarter profit was up 158.75 percent from the previous quarter when the company reported NT$801 million profit in July.

Earnings per share were NT$0.69 in the three months ended September, up from NT$0.27 in the previous quarter and NT$0.37 a year earlier, chairman Miin Wu (吳敏求) told investors in a Webcast presentation yesterday.

The company saw revenue grow 8 percent year-on-year to NT$7.24 billion in the third quarter, up 23 percent from the previous quarter due to strong customer demand for its products amid stable prices, Wu said.

Gross margin reached 44 percent in the third quarter on technological advances and cost-cutting efforts, higher than a forecast of between 38 percent and 40 percent the company made three months ago.

"Our gross margin and operating margin have reached record highs since the second quarter of 2001," Wu said.

Wu predicted a demand slowdown in the fourth quarter.

He said shipment of the company's ROM products would drop this quarter from last quarter because of weakness in both gaming and consumer electronics demands, partly affected by the US credit crunch problem.

As for the output of NOR flash memory, Wu said demand for this type of product was stabilizing and would follow the general cyclical pattern in the information and communications technology industry.

The company's average selling prices (ASPs) grew two percent in the third quarter, lower than its earlier forecast of an up to 5 percent increase.

Paul Yeh (葉沛甫), vice president and chief financial officer of Macronix, said the downside pressure on prices remained, especially on flash memory.

While the company said it was confident about bearing the price pressure given its improved process technology, increased shipments of high-density products and other cost reduction efforts, it expected unit shipment to drop by 5 percent to 10 percent and ASPs to decline by 8 percent to10 percent in current quarter from the third quarter.

Gross margin rate is likely to drop to between 38 percent and 40 percent this quarter from 44 percent in the third quarter. Capacity utilization rate is expected to reach 80 percent to 85 percent in the fourth quarter from 95 percent in the previous quarter.

Wu said industry visibility would become clear after Thanksgiving.

He said the company's board has approved NT$1 billion capital spending for the first quarter of next year, up from NT$160 million for the fourth quarter. That will be used for 75nm technology migration and capacity expansion, he said.

Taiwan's Compal sees Q4 shipments up, better 08





http://today.reuters.com/news/articleinves...L&type=qcna

TAIPEI, (Reuters) - Compal Electronics (2324.TW: Quote, Profile , Research), the world's No. 2 contract laptop maker, said on Thursday its fourth-quarter shipments will rise 10 percent from the previous quarter, as it chases larger rival Quanta Computer (2382.TW: Quote, Profile , Research).

"The global PC market will increase about 20-25 percent next year, and we plan to take up 30 percent of the global contract PC market," Compal's President Ray Chen told an investor conference.


Quanta currently has around 30 percent of the global contract PC market.

Compal, a supplier to Dell Inc (DELL.O: Quote, Profile , Research), Hewlett-Packard Co (HPQ.N: Quote, Profile , Research), and Acer Inc (2353.TW: Quote, Profile , Research), competes with sector leader Quanta, which posted a record profit for the third quarter on Tuesday amid strong demand. [ID:nTP164253]

Chen added that laptop shipments for Compal in 2008 are expected to grow 30 percent from the current year's forecast 23 million units to around 30 million units. The firm shipped 14.5 million notebooks last year.

Gross margins in the fourth quarter are predicted to improve slightly to 5 percent, from 4.8 percent in the third, as average selling prices rise slightly, he said.

Science parks hit record US$62bn last year: NSC

http://www.taipeitimes.com/News/biz/archiv...1/31/2003399675

REVENUE: NSC Deputy Minister Huang Wen-hsiung said that the fast developing photonic industry could eventually surpass semiconductor industry revenue
By Meggie Lu
STAFF REPORTER
Thursday, Jan 31, 2008, Page 11

The nation's three major science parks produced a combined revenue of nearly NT$2 trillion (US$62.1 billion) last year, the National Science Council (NSC) said at a press conference yesterday.

NSC Deputy Minister Huang Wen-hsiung (黃文雄) said the NT$1.9664 trillion was a historic high and a 12.3 percent growth from the previous year.

He said that the council is optimistic that this year the science parks would generate a revenue of NT$2.23 trillion as well as provide an additional 200,000 job opportunities.

"Giving conservative estimates, this year Hsinchu Science Park [HSP, 新竹科學工業園區] is capable of reaching a NT$1.25 trillion revenue, while the Southern Taiwan Science Park [STSP, 南部科學工業園區] NT$0.62 trillion, and the Central Taiwan Science Park [CTSP, 中部科學工業園區] NT$0.36 trillion," Huang said.

Last year, the three parks failed to exceed the projected revenue of NT$2 trillion by a short gap, "partly because of the impact of a depressed US economy," he said.

"Since Taiwan is an export-oriented country in these fields, the exact figures for 2008 will depend on the global economy," he said. "However we remain optimistic, since Taiwan currently still holds a strong competitive edge globally in these fields."

Among businesses in the three science parks, semiconductor manufacturers continued to be in the lead, contributing about half, or 49.94 percent, of the total revenue, Huang said, adding that the photonics industry was responsible for 41.02 percent.

The fast developing photonic industry could eventually surpass the semiconductor industry percentage share of revenues since LCD/LED/solar cell panel developments and production is "driving the current market," he said.

"Taiwan in the next 10 years or so will lead the semiconductor industry quite steadily -- we have the best technology and talent that cannot be surpassed in the short-run, even if plants relocate to, say, China," HSP administration director-general Huang Der-ray (黃得瑞) said.

Future business recruitment, in addition to developments in the two strongest industries, will include those in the biomedical and green energy industries, among others, Chen said.

In addition, "talent recruitment and training will be a main focus for the science parks in the coming years, collaborating with higher level educational institutions to bring the best people into the parks," CTSP administration director-general Yang Wen-ke (楊文科) said.

"Locating appropriate land for the construction of more manufacturing plants will also be a priority," he said.

STSP administration director-general, Chen Chun-wei (陳俊偉) also said that around 86.25 percent of the science parks' available land for rent a total of 1,470.35 hectares is currently occupied.

"This translates to a NT$1713 million of revenue per hectare of land," he said.

While both STSP and CTSP are currently running with heavy debts, Chen said the benefits of the parks far outweigh their short-term financial burden on the country.

Sun Microsystems Selects Taiwan Foundry For Future UltraSparc Chips

http://www.informationweek.com/news/showAr...wMZSoygSWwN2SBg



Taiwan Semiconductor Manufacturing Co. will start by making Sun processors based on a 45-nanometer manufacturing process.

Sun Microsystems (NSDQ: JAVA) on Tuesday said it has chosen Taiwan Semiconductor Manufacturing Co. as the foundry for future generations of UltraSparcC chips.

TSMC will start by making Sun processors based on a 45-nanometer manufacturing process. Such chips hold smaller transistors than the older 65 nm process, which means the former is more powerful and energy efficient. Texas Instruments (NYSE: TXN), which had been Sun's foundry for two decades, will continue to test and package Sun processors.

In choosing TSMC, Sun has partnered with the world's largest chip foundry in terms of market share. Such businesses fabricate processors designed by others. "TSMC gives us leading process technology coupled with the economics scale of high volume and lower cost," David Yen, Sun's executive VP for Sun's microelectronics group, said in a statement.
Texas Instruments about a year ago said it did not plan on spending the billions of dollars needed to shift manufacturing facilities from 65 nm to 45 nm. This decision led to Sun moving to TSMC. "TI has had the pleasure of being a strategic partner with Sun for almost two decades and we look forward to working with TSMC to provide turnkey backend support for Sun's Sparc product roadmap," said Hunter Ward, VP and general manger of TI's Sun Business Unit.

Sun and TSMC also plan to work together on Sun's OpenSparc program, starting with an expansion of a university outreach program in Taiwan. OpenSparc is a 64-bit, 32-thread processor design free of any royalty or licensing fees. TSMC has a large customer base and a "substantial number" of large intellectual property partners that are expected to help expand OpenSparc adoption.

Taiwan's Hon Hai unit to buy PC-related assets of US-based Sanmina-SCI

http://www.tradingmarkets.com/.site/news/S...wMZSoygSWwN2SBg



TAIPEI, Feb 19, 2008 (XFN-ASIA via COMTEX) -- SANM | news | PowerRating | PR Charts -- Sanmina-SCI Corp said it has signed a definitive agreement with Foxteq Holdings Inc, a unit of Taiwan's Hon Hai Precision Industry (2317.TW), under which Foxteq will buy some of the US firm's personal-computing related operations and logistics businesses in Hungary, Mexico and the US.

California-based Sanmina-SCI expects that proceeds from the Foxteq transaction, along with funds raised from sale of some other related assets associated with but not included in the deal, will be about 80-90 mln usd, depending on book value of the assets at the time of closing of the deal.

Both Hon Hai, which is also known as the Foxconn group, and Sanmina-SCI are leading providers of electronics manufacturing services.

Hon Hai confirmed in a filing to the Taiwan stock exchange that Foxteq signed a contract with Sanmina-SCI.
Pending routine procedures and regulatory approvals, the deal is expected to be completed by the end of June, it said.
Hon Hai said it cannot give further details due to a non-disclosure agreement with the US firm.
Hon Hai shares today closed closed up 1.50 twd at 175.50.

IT industry to boost workforce by 15% this year: job bank

http://www.taipeitimes.com/News/biz/archiv...3/03/2003403855

SUNNY DAYS: Asustek, which took part in a job fair over the weekend in Taipei, said it expected to hire as many as 1,000 new employees this year
By Jerry Lin
STAFF REPORTER
Monday, Mar 03, 2008, Page 12

The nation's IT industry is expected to increase its workforce by 15 percent this year to meet growing sales, online human resource agency 1111 Job Bank (1111人力銀行) said yesterday.

To meet the booming demand for IT professionals, the job bank held a Technology Industry Career Fair in Taipei on Saturday, with 40 large IT firms in attendance, representing more than 10,000 job opportunities.

Asustek Computer Inc (華碩電腦) and Compal Electronics Inc (仁寶電腦) offered the most job opportunities at the event, with 329 and 219 respectively.

System software-related and manufacturing and production jobs were in greatest demand, comprising 14.12 percent and 13.63 percent of the openings respectively, the job bank said.

Huang Shih-hsiu (黃士修), an assistant human resource officer at Asustek, said the company "will offer up to 1,000 job opportunities this year as a result of spinning off our contract production business last year after [Asustek] president Jerry Shen (沈振來) projected that sales would climb to NT$700 billion [US$22.62 billion] by 2010."

One job seeker, surnamed Lin, said she was interested in Taiwan Semiconductor Manufacturing Co's (TSMC, 台積電) employment package, including training.

These factors were important, Lin said, adding that they would benefit her future career path.

Powerchip eyes profit and seeks state funds


Tue Oct 20, 2009 7:03am EDT

http://www.reuters.com/article/rbssTechMed...LK4105120091020





TAIPEI, Oct 20 (Reuters) - Powerchip (5346.TWO), Taiwan's top PC memory-chip maker, expects to return to profit in the fourth quarter helped by rising prices, and has requested state funds to help restructure the island's DRAM sector.

Powerchip Semiconductor Corp, which also owns technology to produce flash memory chips, has submitted a proposal to the government to request funds of T$4.5 billion ($140 million) initially to set up a new flash memory chip company.

Chairman Frank Huang told reporters on Tuesday the company would also raise another T$5.5 billion from the private sector for the new company, which Powerchip said would secure capacity by buying facilities from other local DRAM firms in the future to help reduce DRAM output gradually.

"For flash, the biggest driving force will come from smartphones and Apple also plays an influential role," Huang said, referring to Apple Inc's (AAPL.O) iphone.

Powerchip, Nanya Tech (2408.TW) and other smaller Taiwanese DRAM chip makers have all been losing money for most of the past year in a global downturn due to oversupply, while DRAM prices have rebounded recently as PC demand recovers.

If Powerchip runs at full capacity and the average DRAM price stays high at more than $2, Huang said his company is likely to return to profit in the final quarter of 2009.

The projection is more optimistic than analysts' forecast of a T$2.35 billion loss for the fourth quarter, according to Thomson Reuters I/B/E/S. But that is narrower than an estimated loss of T$5.7 billion for the third quarter, the data showed.

Powerchip's application came after Taiwan Innovation Memory Co (TIMC), a new state-backed DRAM company, requested T$5 billion from Taiwan's government, which has allocated a total T$30 billion in state funds to help local DRAM makers struggling with their worst-ever downturn. [ID:nTP89400]

Taiwan's government will take three months to decide who will get the funds and how much, though the entire process might be shorter. [ID:nTP125748]

The companies' proposals would have to include plans on developing technology with foreign firms and as well as strategies such as mergers and acquisitions.

On the same day, however, Nanya Tech and Inotera (3474.TW), Nanya's joint venture with U.S.-based Micron (MU.N), have decided not to submit their own restructuring plan to the government.

"The current DRAM industry is different from what it was a year ago. The best timing for DRAM reformation or consolidation under this scheme has passed," Nanya Tech said in a statement.

"To consolidate partial capacity does not bring much help to DRAM restructuring. After thoughtful consideration, our camp has therefore decided not to submit the application for government funding." (US$1=T$32.3) (Reporting by Argin Chang and Baker Li, Editing by Elaine Hardcastle)

Taiwan's AU returns to profit as LCD prices rise






https://news.fidelity.com/news/news.jhtml?c...405_1&IMG=N


REUTERS — 2:14 AM ET 10/22/09

TAIPEI, Oct 22 (Reuters) - Taiwan'sAU Optronics Corp (Symbol : AUO) , the world's No.3 LCD maker, posted its first net profit in a year on Thursday, as growing demand for computers and flat-screen TVs boosted display sales and prices.

The company's performance is in line with other makers of liquid crystal display (LCD) screens, which over the past several months have managed to recover quickly from a severe slowdown, riding largely on the popularity of flat-screen TVs.

LG Display (Symbol : LPL) , the world's No.2 maker of LCD screens, posted a record operating profit for the third quarter but said LCD prices could fall in the next quarter. [ID:nSEO366638]

AU , a supplier to brands such as Dell Inc (Symbol : DELL) , Hewlett-Packard Co (Symbol : HPQ) and Sony Corp (Symbol : SNE) , booked a net profit of T$7.4 billion ($230 million) in July-September compared to a net profit of T$860 million a year ago. The company reported a net loss of T$6.6 billion in the second quarter.

Analysts had expected AU Optronics (Symbol : AUO) to earn T$6.69 billion in the third quarter, according to the latest consensus forecast by Thomson Reuters I/B/E/S.

"Benefited from better market demand and higher panel prices, our operating results improved significantly from the previous quarter," AU Chief Financial Officer Andy Yang said in a statement.

Ahead of the results, AU's Taipei-listed shares closed down 2.34 percent on Thursday. Smaller local rival Chi Mei Optoelectronics (Symbol : CMEOF) lost 1.2 percent, similar to the main TAIEX's fall.

AU shares edged up 0.6 percent in the third quarter, lagging the big board's 17 percent gain, while Chi Mei, which reports earnings next week, lost 2 percent. AU shares hit the year's highest level in late July but have since faltered. (US$1 = T$32.3) (Reporting by Baker Li, Editing by Anshuman Daga and Valerie Lee)

I never heard of these brands.

You will soon.



What's your sig pics?