Global Unichip expects modest growth by 2020
28 August 2023
IC design services company Global Unichip estimates that its revenue will achieve modest growth by 2020, driven by the growing demand for 5G and artificial intelligence-related equipment.
Ken Chen, president of Unichip Global, said that emerging artificial intelligence, machine learning and 5G applications are about to take off. The company has already received new orders from international cloud vendors and plans to mass produce it later this year.
Chen pointed out that by 2020, Unichip's non-recurring engineering design and turnkey solution orders will achieve double-digit sales growth.
Chen pointed out that due to the growing demand for 7nm processes and more advanced manufacturing processes, leading to increased mask costs, by 2020, the global Unichip's gross profit margin may decline.
Global Unichip's announced 2019 revenue fell 20.4% year-on-year to NT $ 10.7 billion (US $ 357.4 million). Slowing demand for cryptocurrency mining chips and the impact of the U.S.-China trade war have led to a decline in revenue.
Unichip's NRE design orders worldwide fell 21% in 2019 to NT $ 3.21 billion, while sales of its ASIC and foundry products business fell 22% from the previous year to NT $ 7.19 billion.
In 2019, Unichip's global net profit was NT $ 633 million, a year-on-year decrease of 35.9%, and earnings per share were NT $ 4.37.
Chen said that last year, sales from mining chip orders accounted for 2% of global Unichip's total revenue, compared with 24% in 2018. By 2020, this proportion will reach zero.
On the other hand, Unichip's sales of artificial intelligence and machine learning applications orders as a percentage of the company's revenue will rise from 0.4% in 2019 to 8% in 2020. Chen said that by 2021, this proportion will further expand to 20%.
In general, seasonal factors may weigh on global Unichip revenue in the first quarter of 2020, but growth will resume in the next few quarters, and annual revenue may increase moderately.
Ken Chen, president of Unichip Global, said that emerging artificial intelligence, machine learning and 5G applications are about to take off. The company has already received new orders from international cloud vendors and plans to mass produce it later this year.
Chen pointed out that by 2020, Unichip's non-recurring engineering design and turnkey solution orders will achieve double-digit sales growth.
Chen pointed out that due to the growing demand for 7nm processes and more advanced manufacturing processes, leading to increased mask costs, by 2020, the global Unichip's gross profit margin may decline.
Global Unichip's announced 2019 revenue fell 20.4% year-on-year to NT $ 10.7 billion (US $ 357.4 million). Slowing demand for cryptocurrency mining chips and the impact of the U.S.-China trade war have led to a decline in revenue.
Unichip's NRE design orders worldwide fell 21% in 2019 to NT $ 3.21 billion, while sales of its ASIC and foundry products business fell 22% from the previous year to NT $ 7.19 billion.
In 2019, Unichip's global net profit was NT $ 633 million, a year-on-year decrease of 35.9%, and earnings per share were NT $ 4.37.
Chen said that last year, sales from mining chip orders accounted for 2% of global Unichip's total revenue, compared with 24% in 2018. By 2020, this proportion will reach zero.
On the other hand, Unichip's sales of artificial intelligence and machine learning applications orders as a percentage of the company's revenue will rise from 0.4% in 2019 to 8% in 2020. Chen said that by 2021, this proportion will further expand to 20%.
In general, seasonal factors may weigh on global Unichip revenue in the first quarter of 2020, but growth will resume in the next few quarters, and annual revenue may increase moderately.
