ASE Technology Holding Co. reports Q4 revenue growth, expects positive momentum in 2024

Taiwanese semiconductor company ASE Technology Holding Co. announced a 6 per cent growth in revenue for the last quarter, reaching NT$160.59 billion (US$5.18 billion), slightly surpassing the company’s earlier estimate.

Taiwanese semiconductor company ASE Technology Holding Co. announced a 6 per cent growth in revenue for the last quarter, reaching NT$160.59 billion (US$5.18 billion), slightly surpassing the company’s earlier estimate. As the world’s largest chip testing and packaging service provider, ASE had predicted a 3 per cent sequential growth driven by seasonal demand.

However, for the entire fiscal year of 2023, ASE witnessed a 16.5 per cent contraction in revenue, settling at NT$204.68 billion, compared to NT$245.14 billion the previous year. The company attributes this decline to challenges within the semiconductor supply chain, particularly in inventory digestion.

ASE anticipates a positive shift in momentum in the current quarter, expressing confidence in revenue growth throughout the year. With the conclusion of inventory digestion in the semiconductor supply chain, the company foresees a return to growth in the coming quarters.

In a similar vein, Vanguard International Semiconductor Corp, specializing in driver ICs for displays, reported a decline of 8.43 per cent in revenue for the last quarter, amounting to NT$9.67 billion. This drop was attributed to sustained weakness in auto chip demand, overshadowing a mild increase in demand for driver ICs used in TV displays. Vanguard’s total revenue for 2023 recorded a 25.96 per cent decrease, settling at NT$38.27 billion.

United Microelectronics Corp (UMC), the world’s fourth-largest contract chipmaker, experienced a 3.7 per cent sequential dip in revenue for the last quarter, amounting to NT$54.96 billion. This decline was attributed to weak demand for auto chips. For the entire year of 2023, UMC reported a 20.15 per cent drop in revenue, totalling NT$222.53 billion. Despite the challenging year, UMC expresses optimism for a turnaround in 2024, driven by increased shipments and improved chip prices, particularly in the laptop and smartphone supply chains, as inventories diminish.

As the semiconductor industry navigates through challenges and adjustments, companies like ASE, Vanguard, and UMC are strategically positioning themselves to capitalize on emerging opportunities and anticipate positive growth trends in the year ahead.