KYEC to see utilization drop in 4Q due to weak CE and handset markets
Wafer testing house King Yuan Electronics Company (KYEC) may suffer a sequential slide in utilization in the fourth quarter of 2008, with the rate dropping from 60-70% in the third quarter to 50-60%, sources speculated. KYEC responded by saying that a sustained decrease in the proportion of the memory testing segment plus unexpectedly weak demand during the traditional peak season have indeed affected the company's utilization.
KYEC indicated that although orders increased slightly in September, they declined quickly in October. With orders decreasing significantly, the downturn in the consumer electronics and handset market will last until the second quarter of 2009, the company said.
KYEC posted accumulated after-tax profits of NT$1.2 billion (US$36.4 million) for the first three quarters of 2008, with the figure close to the company's performance during the same period of last year.
KYEC has updated its capital expenditure (capex) plan for 2008 to NT$5.5 billion. Of the amount, NT$3.5 billion has been invested in testing equipment procurement. The company will add 200 units of testing equipment to make a total of 1,780 units by the end of 2008, it said. For 2009, KYEC may cut its capex substantially to half of this year's sum, the company added.
In Qualcomm's earlier financial forecast announcement, the company estimated to see a shipment decline of 25% for the handset application in the fourth quarter of 2008.
KYEC indicated that although orders increased slightly in September, they declined quickly in October. With orders decreasing significantly, the downturn in the consumer electronics and handset market will last until the second quarter of 2009, the company said.
KYEC posted accumulated after-tax profits of NT$1.2 billion (US$36.4 million) for the first three quarters of 2008, with the figure close to the company's performance during the same period of last year.
KYEC has updated its capital expenditure (capex) plan for 2008 to NT$5.5 billion. Of the amount, NT$3.5 billion has been invested in testing equipment procurement. The company will add 200 units of testing equipment to make a total of 1,780 units by the end of 2008, it said. For 2009, KYEC may cut its capex substantially to half of this year's sum, the company added.
In Qualcomm's earlier financial forecast announcement, the company estimated to see a shipment decline of 25% for the handset application in the fourth quarter of 2008.
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