Phison Electronics, a leading Taiwanese memory control IC manufacturer, reported robust financial results for Q2 2024, with net profit surging to NT$2.451 billion, a 456.2% increase from the same period in 2023. Despite a slight 3.8% decline in consolidated net operating income from the previous quarter, the company maintained a strong gross profit margin of 34.9%, reflecting its strategic shift towards high-end and enterprise SSD markets.
The company acknowledged a slowdown in the retail SSD upgrade market, largely due to pre-installed SSDs in desktop PCs. However, Phison’s long-standing focus on non-retail markets and high-end SSD segments has started to bear fruit. Enterprise-class SSDs, generative AI solutions, and vehicle storage applications are among the areas contributing to the company’s growth.
Phison’s CEO, Pan Jiancheng, highlighted the growing demand for AI-related storage solutions, which is expected to increase SSD demand by over 60% annually. This trend, coupled with Phison’s advanced offerings like aiDAPTIV+ for AI servers, positions the company well for continued revenue growth.
Despite challenges in retail, Phison’s strategic focus on diversified markets and emerging technologies has bolstered its financial performance, as evidenced by its impressive net profit margin of 15.4% and EPS of NT$11.97 for the quarter.
