Telechips turns to red
South Korean fabless companies have posted mixed results for the third quarter of 2020.
Twenty three fabless companies combined posted sales of 724.8 billion won in sales in the third quarter, a rise of 23.3% year-on-year. Silicon Works accounted for half of the sales and its growth impacted the figure the most. Four companies to returned to profitability while ten companies posted losses.
Silicon Works posted revenue of 367.2 billion won and operating income of 48.4 billion won, a rise of 47% and 245.1%, respectively, from the same time period a year ago.
The company supplies driver IC for OLED. Its main client LG Display recently won larger orders from Apple. Silicon Work’s mobile business saw sales growth of 210% year-on-year thanks to this.
Anapass also benefited from increased demand from OLED. Its timing controller, or T-con, which it supplies to Samsung Display, accounted for 50.1% of its sales in the quarter. This was more than its previous mainstay T-con for liquid crystal display, which accounted for 33.1% of the quarterly sales.
Anapass saw sales of 21.8 billion won and operating income of 1 billion won in the quarter. Sales was 30.8% higher than a year ago while it returned to profitability compared to last year. The company said its yield rate for T-con for OLED stabilized in the third quarter.
Abov Semiconductor posted sales of 40.9 billion won and operating income of 8.1 billion won in the third quarter, a rise of 27.8% and 154.9%, respectively, from a year prior.
The company said sales from SAR sensors for smartphones contributed to the growth. SAR sensors are expected to account for 35% of its full-year sales for 2020, the company added.
Dongwoon Anatech posted 21.4 billion won in sales and operating income of 1.6 billion won. Sales rose 40.7% from a year ago. It returned to profitability compared to last year. The company said it saw increased supply of autofocus driver IC for OIS in smartphones to Chines from companies such as Huawei, Oppo and Vivo.
Pixelplus saw sales of 8.4 billion won and operating income of 300 million won in the quarter. The firm also benefited from increased export of CMOS image sensors for HD and Full HD appliances in China. Pixelplus said it saw demand decrease in the first half of 2020 due to the COVID-19 pandemic but saw supply recover thanks to China’s economic recovery in the third quarter.
Telechips turned to the red due to poor sales of major client Hyundai Motor. The company supplies in-vehicle infotainment system-on-a-chip for the Korean auto giant.
NC&, Alpha Holdings, Fidelix, TLI, Clover Hitech, I&C Technology, Imagis, ADC, N Citron and Mtekvision continued to post losses.