Novatek Microelectronics Corp. projected higher first-quarter revenue after posting weaker fourth-quarter results, as Chinese provincial subsidies for TV replacements and U.S. tariff concerns drive customer demand.
The Taiwanese chip designer expects revenue of NT$26-27.2 billion ($820-857 million) this quarter, following a 9.3% sequential decline to NT$25.26 billion in the fourth quarter. Annual profit dropped 12.8% to NT$20.34 billion ($640 million) in 2023.
CEO Wang Shou-Ren cited increased demand for large-size TV panels and growth in notebook and tablet segments. The company’s display driver IC business is forecast to lead growth this quarter, while automotive chip demand remains soft.
Novatek is betting on artificial intelligence features to drive growth in premium notebooks, where it claims market leadership. The company plans to integrate AI capabilities across its TV, gaming monitor and surveillance product lines.
The chip maker maintained gross margins between 37-40% for the current quarter, with operating margin projected at 18.5-21.5%. Display driver ICs for small-medium panels represented 41% of fourth-quarter revenue, while system-on-chips accounted for 37%.
