SAS & GWC June 2020 Revenue Report

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Sino-American Silicon Products (SAS) released June results today that the consolidated revenue totaled NT$5.51 billion with +17.72% MoM and -4.16% YoY, which included solar revenue of NT$451 million with +28.68% MoM and -28.14% YoY. SAS Q220 consolidated revenue totaled NT$15.04 billion, -1.57% QoQ and -9.72% YoY. Solar revenue in Q120 reached NT$1.34 billion, -24.10% QoQ and -31.83% YoY. As for 2020 first half, SAS cumulative consolidated revenue was NT$30.32 billion, -11.26% YoY.

SAS’s semiconductor subsidiary, GlobalWafers (GWC), also released its June results today that the consolidated revenue reached NT$5.06 billion with +16.83% MoM and -1.22% YoY. GWC Q220 consolidated revenue totaled NT$13.70 billion, +1.38% QoQ and -6.76% YoY. As for 2020 first half, GWC cumulative consolidated revenue was NT$27.22 billion with -10.13% YoY.

The outlook for the second half of the year heavily depends on further developments in the COVID-19 pandemic. As long as the epidemic is contained, the global supply and demand balance will be restored. Many industries are likely to keep the digital adoption after tasting the convenience of digital serve and remote working pattern even though the pandemic eases. The stimulus measures planned by governments to soften epidemic blow may bring a potential demand surge. From GlobalWafers’ perspective, though customers might deplete the safety inventories built in the first half and may place fewer orders, the long-term industry trend is positive as the onset of 5G, Edge Computing, AIoT, Industry 4.0 etc. will drive demand growth. Regarding solar, power plant constructions slowed significantly due to government-imposed lockdown, solar and energy storage demands also declined. In Taiwan, encouraged by policy, the proportion of renewable energy in power generation has gradually increased. The explicit Renewable Energy Promotion Project announced by Bureau of Energy, Ministry of Economic Affairs aims to increase the installed photovoltaic power capacity in Taiwan to 6.5 GW by 2020. The total photovoltaic power installed as of 2018 was 2.8 GW, which means additional 3.7 GW is needed in 2019~2020. In response to government’s green energy policy, SAS continues to explore power plants and dedicates in operation and maintenance, improving its business performance, navigating in the ever-changing macro environment and enhancing its operating scale!