Semiconductor conglomerates in maximum profit…Medium and small FabLess in ‘sluggish situation ‘
[ Park Seul Gee seul@ ] | 2017-09-06 10:56:10
Earnings of Top 15 Fabless Companies in 1H
In the first half of this year, domestic major FabLess listed semiconductor companies showed their performance worse than last year. Large-sized companies such as Samsung Electronics and SK Hynix have achieved record-high results in the memory semiconductor market boom, but small and medium-sized fabless semiconductor companies are facing difficulties in management due to price cut pressure and chase of competitors including China.
On September 5, KOSDAQ-listed FabLess semiconductor companies analyzed the top 15 companies` sales results for the first half of this year, showing that 10 companies saw their operating profit decline from the first half of last year. Of these, five were operating deficits. In the first half of last year, both sales and operating profit grew at only two companies: Zygote Global and Jeju Semiconductor.
Meanwhile, operating profit of FabLess semiconductor companies, which design the timing controller and driver chip (driver IC), which are key components of liquid crystal display (LCD) panels, decreased by more than 30% compared to the first half of last year. Silicon Works, LG Display`s main supplier, saw operating profit fall 53.7%. Anapas has lost 30.6% in operating profit due to Samsung Display`s restructuring of LCD production facilities. TLI maintained its weight in the production of high-end products such as timing controller for premium TVs, resulting in a slight operating profit, and turning to black. However, the company also lost 6.3% in the first half of this year.
Pixel Plus, the maker of CMOS image sensors, posted an operating loss of CNY 6.4 billion, more than doubled from the first half of last year. Although the company has recovered most of its sales in the Greater China region, its competitors have recently entered the market, resulting in low prices and deteriorating earnings. NeXT Chip, an image signal processor (ISP) company for CCTV cameras, also turned to a deficit for the first half of this year.
HYUNDAI Research 2 Kia Motors` Hyundai-Kia Automotive Semiconductor module sales to Hyundai Motor and Kia Motors have been sluggish due to sluggish sales of Hyundai Kia Motors. Above semiconductor and digital media processor (DMP) specialist Telechips, which mainly supply microcontroller (MCU) to Samsung, LG and Cucu Electronics, decreased 10.9% and 68.2% respectively in the first half.
System semiconductors, on the other hand, are attracting attention as the next food industry in Korea following memory semiconductors, but the domestic system semiconductor market is still stagnating unlike the memory semiconductor sector. This is largely due to lower product prices due to intensified competition with Chinese fables listed semiconductor companies. According to market researcher TrendForce, the number of Chinese fables listed semiconductor companies has increased from 736 in 2015 to 1362 last year.
Besides, the fables listed semiconductor industry needs to pioneer new products through rapid development of new products, but it is becoming more and more difficult to invest in research and development (R & D) for new product development due to competition with Chinese companies. Industry officials said. China says the government is spending huge R & D budgets to build fabless semiconductor companies, while government officials say the government`s R & D support is poor.
According to the Korea Semiconductor Industry Association, the launch of system semiconductors last year was 2.77%, and product launches decreased by 13.7% and 28.6% from the previous year to 1.55, respectively.
It is in contrast to Chinese fabless companies, which receive full support from the government and expand their camps. According to market researcher IC Insights, the number of Chinese companies among the top 50 fabless semiconductor companies in the world was only one in 2009, but last year it reached 11.
Industry experts stated, "Fabless semiconductor companies need to constantly find new customers, but the government has not been able to foster it, and profitable businesses are very difficult for domestic companies to develop or commercialize."
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
In the first half of this year, domestic major FabLess listed semiconductor companies showed their performance worse than last year. Large-sized companies such as Samsung Electronics and SK Hynix have achieved record-high results in the memory semiconductor market boom, but small and medium-sized fabless semiconductor companies are facing difficulties in management due to price cut pressure and chase of competitors including China.
On September 5, KOSDAQ-listed FabLess semiconductor companies analyzed the top 15 companies` sales results for the first half of this year, showing that 10 companies saw their operating profit decline from the first half of last year. Of these, five were operating deficits. In the first half of last year, both sales and operating profit grew at only two companies: Zygote Global and Jeju Semiconductor.
Meanwhile, operating profit of FabLess semiconductor companies, which design the timing controller and driver chip (driver IC), which are key components of liquid crystal display (LCD) panels, decreased by more than 30% compared to the first half of last year. Silicon Works, LG Display`s main supplier, saw operating profit fall 53.7%. Anapas has lost 30.6% in operating profit due to Samsung Display`s restructuring of LCD production facilities. TLI maintained its weight in the production of high-end products such as timing controller for premium TVs, resulting in a slight operating profit, and turning to black. However, the company also lost 6.3% in the first half of this year.
Pixel Plus, the maker of CMOS image sensors, posted an operating loss of CNY 6.4 billion, more than doubled from the first half of last year. Although the company has recovered most of its sales in the Greater China region, its competitors have recently entered the market, resulting in low prices and deteriorating earnings. NeXT Chip, an image signal processor (ISP) company for CCTV cameras, also turned to a deficit for the first half of this year.
HYUNDAI Research 2 Kia Motors` Hyundai-Kia Automotive Semiconductor module sales to Hyundai Motor and Kia Motors have been sluggish due to sluggish sales of Hyundai Kia Motors. Above semiconductor and digital media processor (DMP) specialist Telechips, which mainly supply microcontroller (MCU) to Samsung, LG and Cucu Electronics, decreased 10.9% and 68.2% respectively in the first half.
System semiconductors, on the other hand, are attracting attention as the next food industry in Korea following memory semiconductors, but the domestic system semiconductor market is still stagnating unlike the memory semiconductor sector. This is largely due to lower product prices due to intensified competition with Chinese fables listed semiconductor companies. According to market researcher TrendForce, the number of Chinese fables listed semiconductor companies has increased from 736 in 2015 to 1362 last year.
Besides, the fables listed semiconductor industry needs to pioneer new products through rapid development of new products, but it is becoming more and more difficult to invest in research and development (R & D) for new product development due to competition with Chinese companies. Industry officials said. China says the government is spending huge R & D budgets to build fabless semiconductor companies, while government officials say the government`s R & D support is poor.
According to the Korea Semiconductor Industry Association, the launch of system semiconductors last year was 2.77%, and product launches decreased by 13.7% and 28.6% from the previous year to 1.55, respectively.
It is in contrast to Chinese fabless companies, which receive full support from the government and expand their camps. According to market researcher IC Insights, the number of Chinese companies among the top 50 fabless semiconductor companies in the world was only one in 2009, but last year it reached 11.
Industry experts stated, "Fabless semiconductor companies need to constantly find new customers, but the government has not been able to foster it, and profitable businesses are very difficult for domestic companies to develop or commercialize."
By Park Seul Gee seul@