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GlobalWafers Reports Second Quarter 2020 Financial Results

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GlobalWafers board approved its financial statements for the second quarter ended June 30, 2020 today with the consolidated revenue of NT$ 13.7 billion, gross profit of NT$5.28 billion, operating profit of NT$ 4.23 billion, net income attributable to the parent company of NT$ 3.40 billion, and EPS of NT$ 7.81, operating margin of 30.9%, net profit margin of 24.8% hit the best record in the history. Quarter over quarter, the second quarter results represented 1.4% increase in consolidated revenue, 7.0% increase in gross profit, 11.2% increase in operating profit, 18% increase in net income attributable to the parent company, and NT$ 1.19 EPS up. Year over year, the second quarter results represented 6.8% decrease in consolidated revenue, 10.2% decrease in gross profit, 9.5% decrease in operating profit, 4.2% decrease in net income attributable to the parent company, and NT$0.34 EPS down. 2Q20 profitability edged up and beat the last 3 quarters, reflecting its correct operation strategy in driving growth against headwinds.

Regarding the first half of 2020 consolidated financial results, GlobalWafers achieved accumulated consolidated revenues of NT$27.22 billion, down 10.1% YoY, gross profit of NT$ 10.22 billion, down 16.8% YoY, operating profit of NT$8.03 billion, down 18.6% YoY, net income attributed to parent company of NT$6.28 billion, down 15.3% YoY, EPS of NT$14.42, down NT$2.6 YoY. Compared with the second half of 2019, except slight decreases on consolidated revenue and gross profit in 2.1% down and 3.3% down respectively, GlobalWafers obviously recovered from the bottom of semiconductor industry by achieving positive growth on operating profit in 0.1% up, net income attributed to parent company in 0.7% up, EPS in NT$0.09 up, an outstanding performance!

COVID-19 has ravaged around the world since the beginning of 2020 with its dark cloud looming over economy and commercial activities. Contributed by Taiwan’s successful efforts combating COVID-19 and its complete local supply chain, Taiwan semiconductor industry has suffered much less compared to other countries. Though many nations impose quarantine and lockdown to prevent the disease from spreading, being the key enabler, semiconductor is necessary in every aspect of the economy, keeping infrastructure and the society functioning and has been designated as “Essential” by the world’s major economies. GlobalWafers Taiwan Headquarters and all sites abroad maintain normal productions

Benefitted from rush orders of medical electronics, booming e-commerce and digital service from stay-at-home orders, peripherals fueled by WFH (Work From Home) such as computer, cloud service, server and data center as well as safety inventories built by customers, GlobalWafers’ first half shipments were stable. In the future, since many nations consider 5G a crucial strategy to offset the sluggish economy and are accelerating infrastructure construction, as well as semiconductor content enrichment driven by technology advancements, the demand for high quality semiconductor wafers will be robust. Macroeconomic uncertainty and geopolitical tension accelerate the trend towards diminished global interdependence and urge customers to revisit their supply chain strategy and focus on local supply. With extensive global presence, GlobalWafers equips the agility to allocate worldwide capacity for shipping flexibility, and will keep cultivating in Taiwan in the effort to satisfy customers’ demands efficiently. GlobalWafers will continue to improve and outperform rivals with its superior products and unmatched production flexibility as the best contingency plan to minimize global uncertainty.