News
VANCOUVER -- Nam Tai's net sales rose 15.3% in the second quarter to $214 million, in line with company guidance. Operating income rose 39.4% to $20 million, and net income more than tripled to $18.5 million.
In the quarter SG&A and R&D expenses as a percentage of sales was reduced to 4.7% from 5.1% last year. The company generated $17 million of net cash from operating activities and had capital expenditures of $3.4 million.
Nam Tai said growth momentum will be sustained in the third quarter and will further accelerate in the fourth quarter of 2006. The firm reiterated its long-term target of 25% sales growth.
The company expects to begin trial production of flex circuits by the end of the third quarter and is also looking for other opportunities to support the growth of its key component subassemblies business.
A factory expansion is planned for Shenzhen, and Nam Tai plans to construct a factory complex in Wuxi, pending local government environmental approvals.
In the quarter SG&A and R&D expenses as a percentage of sales was reduced to 4.7% from 5.1% last year. The company generated $17 million of net cash from operating activities and had capital expenditures of $3.4 million.
Nam Tai said growth momentum will be sustained in the third quarter and will further accelerate in the fourth quarter of 2006. The firm reiterated its long-term target of 25% sales growth.
The company expects to begin trial production of flex circuits by the end of the third quarter and is also looking for other opportunities to support the growth of its key component subassemblies business.
A factory expansion is planned for Shenzhen, and Nam Tai plans to construct a factory complex in Wuxi, pending local government environmental approvals.
FRANKLIN, MA – Endicott Interconnect Technologies (EI) has chosen the MPM Accela printer, made by Speedline Technologies, for its SMT and semiconductor back-end assembly processes. The companies are jointly conducting beta testing on several new, advanced hardware and software options for the printer.
These advances will leverage Speedline’s patented texture-based inspection algorithms to develop exponentially higher resolution 2-D inspection capabilities. This will enable the ultra-fine feature 2-D capabilities required by emerging higher-density assemblies that employ smaller or finer pitch components.
In addition to this joint inspection development, EI plans to use the Accela printers to process substrates in flat carriers, as well as perform fine feature assembly inspection in their Endicott, NY, facility.
These advances will leverage Speedline’s patented texture-based inspection algorithms to develop exponentially higher resolution 2-D inspection capabilities. This will enable the ultra-fine feature 2-D capabilities required by emerging higher-density assemblies that employ smaller or finer pitch components.
In addition to this joint inspection development, EI plans to use the Accela printers to process substrates in flat carriers, as well as perform fine feature assembly inspection in their Endicott, NY, facility.
EL SEGUNDO, CA — Tight supplies, rising prices and increasing demand for DDR SDRAM caused global DRAM revenue to exceed expectations in the second quarter — and boosted the market share of the Taiwanese suppliers that specialize in the part, according to a preliminary estimate from iSuppli Corp.
Worldwide DRAM revenue rose to $7.5 billion in the second quarter, up 14.3% from $6.6 billion in the first quarter. iSuppli had expected revenue growth of only 4.4%. Many suppliers are phasing out production of DDR in favor of the new mainstream DRAM: DDR2. This constrained supplies of DDR, contributing to an increase in prices. In contrast, prices for DDR2 declined during the quarter as availability increased. The overall impact was a rise in global DRAM prices of 4% compared to the first quarter.
Three months ago iSuppli had predicted a 4% decline for the quarter, which would be closer to a normal decrease in DRAM pricing. Confirming iSuppli’s prediction from three months ago, overall DRAM bit production growth worldwide increased by 10% during the quarter compared to 15% during the same quarter last year. This deceleration in bit production growth provided further support for pricing. Other supply-side factors boosting DRAM pricing included tight availability of DDR2 667 and a shortage of 1Gbit density parts.
“Along with rising prices, tighter supplies and lower production, the DRAM market’s strong performance in the second quarter was fueled by better-than-expected demand,” said Nam Hyung Kim, principal analyst for iSuppli. “PC core-logic chipset suppliers in the second quarter aggressively promoted products that supported DDR, boosting demand for the memory just as DRAM suppliers were phasing out production of the part.”
Due to the rise in DDR prices, the smaller Taiwanese suppliers that are the main suppliers of the part outperformed the tier-one suppliers, according to iSuppli’s preliminary ranking. The three major Taiwanese suppliers, Nanya Technology, Powerchip Semiconductor and ProMOS Technologies, all achieved sales growth of more than 20% sequentially in the second quarter.
Worldwide DRAM revenue rose to $7.5 billion in the second quarter, up 14.3% from $6.6 billion in the first quarter. iSuppli had expected revenue growth of only 4.4%. Many suppliers are phasing out production of DDR in favor of the new mainstream DRAM: DDR2. This constrained supplies of DDR, contributing to an increase in prices. In contrast, prices for DDR2 declined during the quarter as availability increased. The overall impact was a rise in global DRAM prices of 4% compared to the first quarter.
Three months ago iSuppli had predicted a 4% decline for the quarter, which would be closer to a normal decrease in DRAM pricing. Confirming iSuppli’s prediction from three months ago, overall DRAM bit production growth worldwide increased by 10% during the quarter compared to 15% during the same quarter last year. This deceleration in bit production growth provided further support for pricing. Other supply-side factors boosting DRAM pricing included tight availability of DDR2 667 and a shortage of 1Gbit density parts.
“Along with rising prices, tighter supplies and lower production, the DRAM market’s strong performance in the second quarter was fueled by better-than-expected demand,” said Nam Hyung Kim, principal analyst for iSuppli. “PC core-logic chipset suppliers in the second quarter aggressively promoted products that supported DDR, boosting demand for the memory just as DRAM suppliers were phasing out production of the part.”
Due to the rise in DDR prices, the smaller Taiwanese suppliers that are the main suppliers of the part outperformed the tier-one suppliers, according to iSuppli’s preliminary ranking. The three major Taiwanese suppliers, Nanya Technology, Powerchip Semiconductor and ProMOS Technologies, all achieved sales growth of more than 20% sequentially in the second quarter.
Press Releases
- SIA Applauds CHIPS Act Incentives for Amkor Facility in Arizona
- ASMPT and IBM Deepen Collaboration to Advance Bonding Methods for Chiplet Packages for AI
- Murray Percival Company Expands Product Line with Representation of BIMOS ESD Seating in the Midwest
- Selectronic Assembly Welcomes Eliud Herrera as Production Manager