DISCO Corporation, a leading Japanese manufacturer of semiconductor equipment, reported strong financial results for the second quarter of fiscal 2024, driven by robust demand for chips used in artificial intelligence applications.
The company’s net income jumped 48.5% year-on-year to NT$29.7 billion (US$937 million) for the quarter ended September 30. Sales rose 33.1% to NT$96.2 billion (US$3.03 billion), while operating profit climbed 51.9% to NT$42.6 billion (US$1.34 billion).
DISCO attributed the strong performance to high shipment volumes of equipment, particularly for chips used in generative AI systems. The company’s gross profit margin expanded to 71.7%, up from 68.4% a year earlier, thanks to higher-value products and favorable exchange rates.
On the back of record profits, DISCO declared an interim dividend of NT$124 (US$3.91) per share, its highest ever and a 63% increase from last year’s NT$76 payout.
Looking ahead, the company forecasts continued strength in AI-related demand but noted some sluggishness in other sectors. “Although long-term growth is expected in the power semiconductor industry, shipments are currently sluggish due to a slowdown in the EV shift,” DISCO stated in its outlook.
The company is maintaining its focus on developing advanced technologies and strengthening its organizational management to navigate market fluctuations. DISCO plans to invest approximately NT$32 billion (US$1.01 billion) in research and development this fiscal year as it aims to capitalize on emerging opportunities in the semiconductor industry.
