Powertech Technology Inc. reported its lowest quarterly profit in one and a half years as the chip testing company grapples with weak demand and falling prices in its core business.
Net income fell 61.6% to NT$1.52 billion ($48 million) in the fourth quarter from a year earlier, the Hsinchu-based company said in a statement Sunday. Revenue declined 10.2% to NT$17.1 billion.
Despite efforts to expand in artificial intelligence chip testing, which now accounts for 8% of sales, the company faces headwinds in its traditional testing services. CEO Hsien Yueh-Ta expects orders to remain soft in the first quarter before showing signs of recovery.
The company plans to maintain its dividend at NT$7 per share despite full-year earnings dropping 15.2% to NT$9.09 per share. Chairman Tsai Du-Kung cited continued investment in advanced packaging capabilities as key to future growth.
Powertech’s gross margin contracted to 18.3% in the fourth quarter, down from 20.5% a year earlier, reflecting pricing pressure in the semiconductor testing industry.
