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Faraday seeing growth in 28nm chip market

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Faraday seeing growth in 28nm chip market
Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Friday 28 April 2017]

Faraday Technology, a Taiwan-based ASIC design service and IP provider, has expressed optimism about 28nm chip market growth. The company has received new orders for 28nm NRE (non-recurring engineering) designs.

Faraday reported net profits of NT$521 million (US$17.3 million) for the first quarter of 2017, with EPS reaching NT$2.12. EPS for the quarter already exceeded the NT$1.14 reported for all of 2016.

The sale of its security control business boosted Faraday’s net profits for the first quarter of 2017, the company indicated. Earlier in 2017, Faraday announced it had reached a deal with Novatek Microelectronics under which Novatek would acquire IP technologies and assets related to surveillance camera control systems from Faraday for a total of NT$720 million.

Faraday posted consolidated revenues of NT$1.43 billion in the first quarter, down 6.1% sequentially, while gross margin climbed 1.1pp on quarter to 45.3%. The company credited the gross margin growth to a more favorable product mix.

ASIC products accounted for 73% of Faraday’s sales in the first quarter of 2017, followed by IP and NRE designs with 14.7% and 11.5%, respectively. In terms of end-product applications, communications ICs accounted for 56.5% of Faraday’s first-quarter revenues, followed by multimedia chips with 17.9%, consumer electronics with 11% and PC peripherals with 9.6%.

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Categories: Bits + chips IC design, distribution IC manufacturing

Tags: 2016 2017 28nm ASIC consumer electronics design design service EPS Faraday Faraday Technology gross margin IP multimedia Novatek NRE PC peripherals revenues

Companies: Faraday Technology Novatek Microelectronics

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