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Nuvoton Reports Solid Financial Performance in Q4 2023, Anticipates Inventory Lightening in 2024

Despite macro uncertainties, Nuvoton optimistically navigates through supply chain normalization and introduces innovative products across various sectors
n 4919.TW Mid and Small Cap 2000
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Nuvoton Technology held an online press conference to announce its financial achievements for the fourth quarter and full year of 2023. In Q4, the company achieved a consolidated revenue of NT$8.47 billion, after-tax net income of NT$770 million, and after-tax earnings per share (EPS) of 1.68 yuan. The full-year figures were equally impressive, with consolidated revenue reaching NT$35.348 billion, after-tax net income of NT$2.42 billion, and an EPS of 5.77 yuan. Looking ahead, Nuvoton acknowledges the persistence of macroeconomic uncertainties but is optimistic about the normalization of the supply chain following inventory reductions.

CFO Lai Xiufen provided insights into the company’s product segment performance in the fourth quarter, noting an increase in communications sector revenue due to higher MOSFET shipments, while automotive usage saw a decline due to customer inventory adjustments. The computer and consumer goods sectors remained stable quarter-over-quarter, largely influenced by seasonal trends.

For 2024, Lai anticipates a lighter inventory compared to 2023, though overall demand may still face pressures from the global economy and geopolitics. Nevertheless, Nuvoton has achieved significant milestones, including the introduction of new Tier 1 Battery Management System (BMS) customers in China for its third-generation battery monitoring chips and mass production of Human-Machine Interface (HMI) products for automotive electronic module manufacturers in Taiwan.

The company has also made strides in microcontroller technology, communications, consumer products, and computer fields. Notably, Nuvoton’s M463 series microcontrollers now support a wider operating temperature range, and its CSP MOSFET has been adopted for lithium battery protection in new model tablets set to release in 2024. Additionally, Nuvoton’s motor control MCU has been integrated into new models of consumer appliances from Korean clients.

In the computer sector, Nuvoton has become the first embedded controller (EC) and super input and output chip (SIO) supplier to achieve U.S. federal cryptographic module security standard FIPS 140-3 certification. The company has also launched a new eBMC chip aimed at the edge computing platform market and began mass production of the world’s first USB 4 re-timer with an integrated e-Marker for Taiwanese computer manufacturers.

The automotive sector remains promising despite the ongoing transition from traditional fuel vehicles to electric vehicles, with the full impact still under evaluation. Nuvoton, in collaboration with Microsoft, is developing the “Hydra” remote control chip (BMC), expected to contribute significantly by 2025.

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