Nuvoton Technology Corp., a leading Taiwanese semiconductor company, reported a consolidated revenue of NT$8.228 billion (US$266 million) for the second quarter, marking a 2.84% decrease from the previous quarter and an 8.1% drop year-on-year. The company faced an after-tax loss of NT$21 million (US$680,000), equivalent to a loss of NT$0.05 per share, as it contends with significant price pressures and inventory challenges in the Chinese market.
Chairman Su Yuanmao explained that the unexpected loss was primarily driven by a one-time inventory impairment. The gross profit margin dropped to 34.3%, a decline of 7.4 percentage points from the previous quarter and 6.15 points from the previous year. Su noted that while profits have started to recover after a year of inventory adjustments, the pressure from price reductions in the competitive Chinese market is expected to persist, potentially extending inventory adjustments for over two more quarters.
Despite the current financial setbacks, Nuvoton achieved notable successes in the automotive and industrial control sectors during the quarter. The company released the MA35D0 series MPU, designed for industrial edge devices with extensive connectivity and security features, catering to smart infrastructure and automation.
Nuvoton is also advancing in developing innovative industrial solutions, including two new BM-ICs supporting 48V systems. These solutions enhance battery performance, simplify system construction, and improve safety standards, having obtained ISO 24089 certification. Additionally, Nuvoton’s TOF sensor has gained traction with new U.S. clients for applications in smart door lock face detection.
Looking ahead, Nuvoton plans to expand its business operations and reconfigure its production capacity, technology, and product lineup to navigate ongoing market challenges.
