Shulou(Shulou.com)11/24 Report--

CTOnews.com, February 21, according to the Taiwan Central News Agency, at the online legal person lecture held this afternoon, World Advanced said that in the first quarter of this year, a small portion of production capacity was still prepared in advance for customers. As consumer demand continued to be weak, industrial semiconductors also entered inventory adjustment, and capacity utilization was expected to drop by another 10 percentage points.

World Advanced expects revenue of about NT $7.9 billion to NT $8.3 billion in the first quarter, which is about 15% lower than the previous quarter at the median value of NT $8.1 billion (CTOnews.com note: about RMB 1.831 billion); gross profit margin will be about 29% to 31%, and operating profit margin will be about 14.5% to 16.5%.

According to reports, the first quarter is the off-season of traditional operations, and customers continue to actively adjust inventory, wafer shipments are likely to decrease, in addition, adverse exchange rates and sales unit prices are the main reasons for the decline in revenue in the first quarter.

At the same time, the world advanced pointed out that in response to weak end-market demand, customers actively carried out inventory adjustment, affecting order visibility to be shortened to 3 months. World advanced capital expenditure is conservative and prudent this year, with about NT $10 billion (currently about RMB 2.26 billion), down 48.45 per cent from NT $19.4 billion (currently about RMB 4.384 billion) in 2022.

Of this, 55 per cent of capital expenditure will be spent on fab 5, 30 per cent on other fabs to remove bottlenecks, 15 per cent on routine maintenance, and capacity will increase by 8 per cent in 2023.

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